First you need to understand “what is stellar?”. Stellar is the latest and hottest digital currency in the crypto space. It has witnessed a dream run to find a place in the top 10 biggest digital currencies. As on Tuesday, it was commanding 8th Spot among the 10 largest digital currencies. Many have people have turned their focus in Stellar rather than Ethereum or Bitcoin.
Stellar has been on the market for almost 4 years from now. Mr. Joyce Kim and Mr. Jed McCaleb have established the open source protocol – Stellar for value exchange in the year 2014. It is created with an aim to exchange money. Once the software is implemented on the servers and started running, the internet is the medium to communicate with other stellar servers and creates an international value exchange.
Stellar uses a decentralized version of the PBFT known as Stellar Consensus Protocol. On the other hand, Ripple uses the probabilistic voting method. So, Ripple and Stellar are entirely different.
So, stellar is the real-time gross settlement system, remittance network, and a currency exchange. The stellar protocol is developed using a consensus ledger and an open source distributed internet protocol. Stellar does not allow freezing the currency and it is inflationary.
Many people have trusted Stellar because of the open source method to choose the nodes and a trusted network. It is called corum slice. It has a set of validators and uses the open membership system.
It can use two corums separately and connected using a corum intersection. It ensures that transactions are happening at both ends of the corum. You can either issue a commit or abort a transaction. It is quite flexible and most reliable when compared to other types of digital currencies like Ripple.
It is simply a consensus network. It doesn’t focus on the minting of coins. You should have a trust in the system. If some of the corums are not working, you can try other trustworthy coins and set things right.
Benefits of Stellar
It ensures faster transactions
You need not waste the computing power to safeguard the network.
The market cap of Stellar is $10 billion. It takes two to three seconds to settle the transactions using the Stellar.
The Stellar Coins are called XLM or Lumens.