It is an open, distributed payment infrastructure. It is a technology that connects people, payment systems and banks, with a focus on developing markets. This allows you to quickly and reliably conduct multi-currency transactions and assets for fractions of a dollar thanks to tokens called Lumens (XLM).
Stellar – what is it?
The servers run the protocol by connecting to the internet, which they use to communicate with other Stellar servers, creating a global value exchange network. Each server keeps records of all the “accounts” on the network. These records are stored in a database called a “ledger”. The consensus process takes place at regular intervals, typically every 2 to 4 seconds. This ensures that every copy of the server ledger is synchronized and identical.
Stellar history
Stellar is an open value exchange protocol created in early 2014 by Jed McCaleb (creator of eDonkey) and Joyce Kim. The Stellar protocol is backed by the non-profit Stellar Development Foundation. It was based on the Ripple protocol, after which numerous changes were made to the code, and thanks to this, the network developed. The code and publication of this new algorithm were published in April 2015, and the improved network was launched in November 2015.
What is Lumen?
Lumen is the unit of the Stellar network, it determines how the network refers to the value element stored in the ledgers. In 2014, the Stellar network launched 100 billion of these units, and in 2015, with the launch of the upgraded network, the name changed from Stellar to Lumen to distinguish itself from the name of the network and the Stellar organization.
95% of the lumens will be distributed to the world. 5% remains for creators as operating expenses. Stellar.org designed the distribution program in the following proportions:
- 50% for people who want lumens,
- 25% for non-profit organizations,
- 20% to Bitcoin holders