Stellar.org

Stellar Whitepaper

Stellar: Connecting the World's Financial Systems

Explore Stellar (XLM), a decentralized peer-to-peer (P2P) network designed to bridge financial systems globally and facilitate fast, low-cost transactions. Developed by the Stellar Development Foundation (also known as Stellar.org) in 2014 and officially launched in 2015, Stellar's primary goal is to provide a seamless, open-source protocol for payment providers and financial institutions to transfer funds efficiently across borders.

Stellar's Core Mission: Financial Inclusion and Interoperability

Stellar connects individuals, banks, and payment services, making it easier and more affordable to move money anywhere in the world. Unlike many other blockchain platforms, Stellar is specifically optimized for payments and asset issuance. It enables users to create, send, and trade various cryptocurrencies and digital representations of traditional assets (like fiat currencies) on its network. The native cryptocurrency of the Stellar network is Lumens (XLM), which is used for transaction fees, maintaining account minimums, and preventing spam.

Key Milestones in Stellar's Journey:

• 2014: Foundation and Launch: Jed McCaleb, co-founder of Ripple and Mt. Gox, launched Stellar with the aim of building an open, decentralized network for financial services. The Stellar Development Foundation was established.
• 2015: Official Mainnet Launch and SCP: Stellar officially launched its mainnet with a new consensus protocol, the Stellar Consensus Protocol (SCP). SCP is a unique federated Byzantine agreement (FBA) model designed for speed and security.
• 2017: IBM Partnership and XLM Growth: Stellar gained significant attention with its partnership with IBM to facilitate cross-border payments using the Stellar network, demonstrating its enterprise-grade capabilities. This year also saw substantial growth in the value and adoption of XLM.
• 2018: Stablecoin Issuance and Ecosystem Expansion: Stellar became a popular platform for issuing stablecoins and other digital assets, leveraging its fast and low-cost transaction environment. The ecosystem continued to expand with various dApps and projects.
• 2019: Protocol 11 Upgrade (Fee Changes): A significant protocol upgrade introduced changes to transaction fees, aiming to make them more predictable and efficient.
• 2020: USDC on Stellar: Circle's USD Coin (USDC), a major stablecoin, launched on the Stellar network, further enhancing its utility for global payments.
• 2021: Soroban Smart Contracts Announcement: Stellar announced Soroban, a new Rust-based smart contract platform designed to bring more robust and scalable smart contract capabilities to the Stellar network, aiming to attract a broader range of developers.
• 2022-2024: Soroban Development and Ecosystem Growth: Active development on Soroban continued, with testnet deployments and community engagement. Stellar also focused on expanding its partnerships with financial institutions and fintech companies to drive real-world adoption of its payment rails.

Why Stellar is a Crucial Player in Global Finance:

Stellar's unique focus and technical design make it an invaluable platform for:

• Cross-Border Payments: Facilitating fast, low-cost international money transfers, particularly beneficial for remittances and businesses.
• Asset Issuance: Enabling the creation and management of digital representations of any asset, from fiat currencies to real estate.
• Financial Inclusion: Providing accessible and affordable financial services to underserved populations globally.
• Micropayments: Its low transaction fees make it ideal for small, frequent payments.
• Decentralized Exchanges (DEX): Operating an integrated decentralized exchange that allows for seamless trading of different assets on its network.

Stellar continues to empower a more inclusive and efficient global financial system, connecting diverse currencies and institutions through its open and decentralized network. Its ongoing development, particularly with Soroban, promises to further expand its capabilities and impact.