Stellar is a decentralized, open-source blockchain platform designed to facilitate cross-border transactions and financial inclusion. Its primary focus is on improving the speed and cost-efficiency of international money transfers. Stellar achieves this by using a consensus protocol known as the Stellar Consensus Protocol (SCP), which is distinct from traditional Proof-of-Work or Proof-of-Stake systems. Stellar’s native cryptocurrency, Lumen (XLM), is used to pay for transaction fees and provide liquidity in the network. Stellar's unique selling proposition lies in its ability to connect different financial systems and currencies, making it easier for users to transfer assets across borders. The platform supports smart contracts and decentralized applications (dApps), which further enhance its versatility and usability in various financial contexts. Stellar also collaborates with major institutions and corporations to expand its ecosystem and drive adoption, such as partnerships with IBM for the World Wire project. The network’s ability to handle high transaction volumes and low fees makes it an attractive option for both individuals and businesses looking for efficient global transactions. Stellar’s governance model is designed to be inclusive and community-driven, allowing for upgrades and changes to be proposed and voted on by the network’s participants. This guide delves into the key features of Stellar, its operational mechanics, and its impact on the global financial landscape.
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