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An Introduction to Stellar (XLM)
Before founding Stellar (XLM), Jed McCaleb first launched the open-source payment technology known as Ripple.
Unsurprisingly, the two payment technologies share plenty in common. Namely, they both have set out to establish a connection between financial institutions while significantly minimizing the time and price spent on cross-border transfers.
What’s more? Stellar used precisely the same protocol as Ripple in its earliest incarnation.
This all changed in early 2014 when Stellar saw a fork in its protocol spearhead the developments of the SCP (Stellar Consensus Protocol).
Still, there are more ways in which Stellar has differentiated itself from its predecessor—let’s take a closer look.
The Current Price of XLM/USD
Stellar Versus Ripple
Foundationally, both Stellar and Ripple diverge from one another.
Unlike Ripple, Stellar is open source and caters its products and services towards market development. The technology also has several use cases such as money remittances and bank loan distribution to the unbanked.
Conversely, Ripple is a closed system that only works with established banking institutions to streamline cross-border transfer technology.
Delving Deeper into Stellar’s Technology
Setting Stellar apart from its competitors is its consensus protocol that is independent of the miner network when it comes to transaction approval.
To expedite transaction processing, Stellar has implemented a Federated Byzantine Agreement (FBA) algorithm.
The FBA is utilized due to Stellar’s use of quorum slices for transaction validation and approval.
Throughout the Stellar network, every individual node chooses another set of viable nodes. When the transaction is approved via the requisite set of nodes, it’s validated. This process has resulted in the network’s processing of as many as 1,000 operations per second.
Stellar Price Predictions For 2019
Most impressively, Stellar boasts a partnership with IBM that started in 2017. The purpose of the relationship is to set up several currency corridors for South Pacific nations.
Before the IBM partnership, Stellar also paired up with the revered technological consulting firm, Deloitte. The purpose of the two businesses joining forces was to develop a payment app.
Furthermore, as of 2017, 30 banks have signed up to use Stellar’s blockchain for cross-border transfers. And Stripe, a payment service, got rid of bitcoin while leaving room for Stellar to be used on its platform.
What’s New with Stellar?
As of this writing, Stellar has experienced an 8% surge in the market. Stellar’s currency is known as Lumens, and a Japanese exchanged known as Coincheck announced that the coins will be available on the platform.
This news seems to have played a part in Stellar’s surge.