Stellar

What is Stellar

Stellar is an open-source, decentralized layer-1 blockchain network operating on a peer-to-peer basis, providing a platform to build applications, release assets, and link to established financial infrastructures.

The Stellar network operates on an open-source, public blockchain utilizing the Stellar Consensus Protocol (SCP), a proof-of-agreement (PoA) consensus mechanism. Thanks to PoA, Stellar stands out for its speed, cost-effectiveness, and superior energy efficiency compared to many other blockchain platforms.

Its fundamental architecture simplifies the process of generating and releasing digital assets, facilitating prompt and inexpensive global transactions. Within the Stellar network, users can effortlessly create their own currency or token, distributing it digitally on a large scale. This blockchain platform empowers users to generate, transmit, and exchange digital representations of diverse forms of value, including US dollars, Argentine pesos, gold, and real estate.

In essence, Stellar functions as a bridge, connecting financial systems and enabling global interoperability.

Benefits of Stellar:

The use of Stellar offers a range of compelling benefits including:

  • Fast and Low-Cost Transactions: Stellar is designed for rapid transaction settlement, typically taking 2-5 seconds. Additionally, transaction costs are kept low, making it an efficient choice for cross-border payments.

  • Decentralized Exchange: The platform incorporates a decentralized exchange, fostering liquidity and allowing users to trade a diverse array of assets directly within the network.

  • Asset Issuance and Custom Tokens: Stellar empowers users to effortlessly create and issue their own digital assets or tokens, expanding the range of representable value on the platform.

  • Smart Contracts: Support of a Soroban smart contract platform - built with Rust, optimized for scalability and efficiency.

  • Interoperability: Stellar is built to interoperate with traditional financial institutions, different types of assets, and web and layer two blockchain applications.