Stellar is a blockchain network launched in 2014 with a primary focus on enabling fast and inexpensive cross-border payments, particularly for use cases involving currency conversion between different countries. It was created by one of the original co-founders of Ripple, and the two networks share some technical similarities while operating independently.
Stellar has positioned itself around partnerships with payment companies and financial institutions, aiming to make it easier to move value across borders without requiring a chain of intermediary banks, which can slow down and add cost to traditional international transfers.
The native token, XLM, is used to pay small transaction fees on the network and to facilitate currency conversions when assets are exchanged through Stellar's built-in decentralized exchange functionality.
Frequently Asked Questions
Is Stellar the same as Ripple?
They are separate, independent networks, though they share some technical heritage since Stellar's creator previously co-founded Ripple. Each has since developed its own technology and partnerships.
What is XLM used for?
XLM is used to pay the small transaction fees required on the Stellar network and plays a role in facilitating currency conversions through the network's built-in exchange features.
