How Stellar Blockchain Works?
- Stellar works by enabling fast, secure, and low-cost cross-border transactions between users on its network. It runs on an open-source, decentralized platform built on blockchain technology. A network of independent nodes that collaborate to validate and process transactions makes up the Stellar network.
- When a user wants to send money to another user on the Stellar network, the transaction is broadcast to the network. The transaction is then validated by the nodes on the network, who use a consensus algorithm to reach an agreement on the validity of the transaction. The monies are transferred from the sender’s account to the recipient’s account after the transaction has been verified and added to the blockchain.
- One of the key features of Stellar is its use of Lumens (XLM), its native cryptocurrency, as a bridge between different currencies. This means that users can convert between different currencies in real-time, making it possible to send money to another user on the network in their own currency, even if they are located in a different country. The conversion is done automatically by the network, using a system of anchors that hold balances in different currencies.
- Another key feature of Stellar is its support for smart contracts. Smart contracts are self-executing contracts that automatically enforce the terms of an agreement between two parties. This makes it possible to automate complex financial transactions, such as escrow agreements and conditional payments, on the Stellar network.
- The combination of fast transactions, low costs, cross-currency conversions, anchors, smart contracts, and scalability make Stellar an attractive solution for individuals and organizations that need to move money across borders. Its goal is to promote financial access and inclusion by enabling people to move money quickly and cheaply, regardless of their location or currency.
What is Stellar Blockchain?
Stellar is a decentralized, open-source platform that enables fast, secure, and low-cost cross-border transactions. The Stellar network was founded in 2014 by Jed McCaleb and Joyce Kim, and its mission is to promote financial access and inclusion by enabling individuals and organizations to move money across borders quickly and cheaply.
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