What is Stellar (XLM)?
Stellar is an open-source, decentralized payment protocol that allows fast cross-border transactions between each currency pair. Like other cryptocurrency, it operates using blockchain technology. Its original assets, digital currency, are called lumen (XLM). XLM empowers the Stellar network and all its operations, just like how ether (ETH) moves the Ethereum network.
How does the Stellar blockchain work?
Transactions that occur in the Stellar network are added to the shared ledger, distributed, public, databases accessed by anyone around the world. To reach consensus about transactions quickly and accurately, Stellar uses its own unique consensus method.
How does the Stellar consensus method work?
The Stellar consensus method allows fast and inexpensive transactions, with everyone on the network reaching agreement on the validity of transactions in a few seconds. Each participant (called a node) who helps add Stellar transactions to global ledgers selects their own mini network from other trusted participants agreed upon. As long as these mini networks (called quorum pieces) overlap, the Stellar network as a whole can reach agreement on which transactions are valid and can be added to the ledger very quickly.
Where does the Stellar value come from?
Stellar is useful and valuable because it is a global exchange network, which can accommodate thousands of exchanges between currencies and tokens per second. Exchanging between cryptocurrency and / or fiat currencies can be a long and expensive process; Stellar makes fast and inexpensive exchanges. XLM, the asset that will be supported in the Blockchain Wallet, is used to pay transaction fees and manage accounts in the Stellar network.
