Stellar (XLM) is an open source Blockchain platform for foreign exchange transactions. It allows individuals, companies, and financial institutions to transfer cryptocurrencies, fiat currencies, and tokens.

Jed McCaleb and Joyce Kim founded Stellar at the beginning of 2014. It was branched from the Ripple system and for the first time had worked on the same protocol until its own protocol was established. The non-profit fund Stellar Development Foundation was created to develop the platform.

If you want to understand the sustainability of the project, you just need to know why Kin network has transited from Ethereum to Stellar. In an interview, Ted Livingston, the CEO of Kin, stated that Ethereum blockchain, which was then running the application, could not scale to the required level for the company. Ethereum tries to be everything at once and for all, which makes it universal but slow. "Ethereum is the dial-up era of blockchain,” he added. In contrast, Stellar is focused on a specific task: fast, reliable, and low-cost transactions for a large number of users.

In addition, last August Stellar announced the launch of the ICO platform aiming to be easy-to-use and affordable. Thus, it is not due to ambitious plans in the White Paper, but due to real actions why Stellar can be called "Ethereum killer."

Besides Kin, Stellar collaborates with IBM, supporting cross-border payments involving British pounds and Fijian dollars with the use of company's custom cryptocurrency, Lumens (XLM). In the future, the system will be able to work with seven fiat currencies, including the Australian and New Zealand dollars and Tongan pa'anga.

Also, the joint work of public and private blockchains has been successfully implemented within this cooperation. With IBM’s blockchain solutions providing transaction clearing, the actual settlement will be carried out by Stellar.

In the settlement, Lumens tokens can be used as a "bridge" between the various currencies that do not have their own direct market. For example, one party to the transaction wants to get paid in British pounds, and the other has Litecoin in the account. If they cannot find a market maker that would be satisfactory to both parties and work with this currency pair, then at first the currency will be translated into XML and after into the desired currency at the most attractive rate.

In addition, the XLM tokens are used to protect the network from spam accounts. So, not less than 50 Lumens coins are to be in each account continuously. Each address must always hold a minimum amount of 50 Lumens which are the reserve requirement and cannot be sent to other addresses. Moreover, 0.00001 XLM is removed from the balance for each transaction, preventing a large number of transactions. This money is not credited to the balance of the system organizers; it simply does not exist anymore.


The main advantage of the system is a larger number of micropayments with low commissions. Also, the opportunity to work with any currency inside the platform and exchange the tokens automatically makes it interesting for major projects to cooperate with the platform. Despite the fact that Stellar was called the Ripple killer, we see that both projects are actively developing and ready to overtake the Ethereum.