Last week, Stellar and its cryptocurrency, Stellar Lumens( XLM ), surged to become the eighth most-valuable cryptocurrency after digital payments corporation Stripe announced it may add support for for the currency. Stripe handles digital transactions for more than 100,000 industries, including OpenTable and Warby Parker.
Adding to the publicity, the Mobius Network( aka “Stripe for Bitcoin”) ran its initial coin offering( ICO) on the Stellar network instead of Ethereum, inducing additional spikes in its valuation. Mobius co-founder and CEO David Gobaud explained the decision to switch to Stellar by hanging Ethereum out to dry. “We look at Ethereum like AOL or Myspace, ” he said. Statements like this underscore the growing opinion that for big business to take crypto seriously, new coins will need to address the original flaws presented in original coins like Bitcoin and Ethereum.
If you’re thinking about investing in Stellar, here’s everything you need to know.
What is Stellar?
In the simplest of words, Stellar is an open-source financial platform. It dates back to 2011, when programmer Jed McCaleb and several other humen were developing the cryptocurrency known as Ripple, which not only aimed to address the transaction velocity issues Bitcoin presented but hoped to work with banks to offer blockchain solutions. McCaleb had philosophical changes with that second proportion. Wasn’t the whole degree of the blockchain to be decentralized? McCaleb left Ripple and used the Ripple protocol to create Stellar, a coin for the person or persons. Where Ripple is top-down, Stellar is bottom-up.
Like Ripple, Stellar slashes Bitcoin’s blockchain transaction resolving velocity from 10 minutes to a matter of seconds. But where Ripple is deemed more centralized, thanks to partnerships with established banking institutions and its for-profit status, Stellar operates as a non-profit. One additional feature of Stellar is that the platform also roles as an effective currency exchanger between government-backed currencies, such as dollars to euros. Finally, unlike Ripple, Stellar users’ cannot be frozen. Stellar founder McCaleb made a point to make this a feature after $ 1 million of his own Ripple funds were frozen as he departed the company.
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