What is Stellar (XLM), and what makes it unique in the crypto space?
Stellar is a decentralized public blockchain platform. It provides cheap cross-border payments, connecting financial institutions and focusing on financial inclusion and interoperability.
How does Stellar's consensus mechanism work, and why is it different from Bitcoin's?
Stellar employs Stellar Consensus Protocol (SCP), which is actually a construction of the Federated Byzantine Agreement (FBA). It differs from other famous mechanisms (PoS and PoW) in a way that it relies on the agreement of trusted nodes. It's much faster and more energy-efficient than Bitcoin's.
Can I use XLM for everyday transactions and purchases like Bitcoin?
XML offers low fees and quick confirmation times, so it's pretty much suitable for everyday use, even for purchasing Bitcoin.
What's the significance of Stellar's "anchors" in its network?
Stellar's anchors accept deposits in fiat and send the equivalent amount but in digital assets to users.
How does Stellar enable cross-border payments, and what advantages does it offer over traditional methods?
Stellar enables cross-border payments via the blockchain technology. The main advantage is that transactions happen within a few seconds. Moreover, Stellar also provides low fees.
Is XLM's supply capped, and how does it affect its value?
XLM has a fixed supply. In October 2019, the community voted to eliminate the annual increase, so the total XLM's supply stands at about 50 billion coins. If the demand is high, the token's value increases. If the demand is low, the price is likely to drop.
Can I stake XLM to earn rewards or participate in network governance?
No, you cannot stake XLM as it employs Stellar Consensus Protocol (SCP), which makes Stellar an open-source system.
What's the role of the Stellar Development Foundation (SDF) in the ecosystem?
SDF is responsible for the development and promotion of the Stellar network. It supports the blockchain's growth and adoption, shapes the strategic direction, and manages funding.
How does Stellar address scalability concerns?
For addressing scalability concerns, Stellar employs a few features that enchance its efficiency. For instance, it uses a unique consensus algorithm called the Stellar Consensus Protocol (SCP), which doesn't rely on energy-demanding proof-of-work mechanisms and enables faster transactions.
What's "atomic swapping" in the context of Stellar?
Atomic swapping refers to a process when two parties exchange various assets on the Stellar blockchain in a highly secure manner. The word "atomic" in this case implies that swaps happen entirely or not at all.
Can Stellar be used for tokenizing assets beyond traditional currencies?
Yes, Stellar is actually designed to be a platform that supports tokenization beyond traditional financing. Among many things, users can tokenize commodities, real estate, equities and stoks, debt instruments, or non-fungible tokens (NFTs).
What's "inflation" in Stellar, and how does it work?
In Stellar, "inflation" means a mechanism for distributing newly created XLM tokens to network participants regularly. Users vote for inflation, and when it's approved, they get those coins based on their relative voting weights.
How can I create a new token on the Stellar network?
Well, first, users who want to create their tokens on Stellar need to set up an account. Then, they should define such attributes as name, symbol, total supply, etc. After that, users can issue the asset by submitting a transaction to the Stellar network with all the details.
Is Stellar's focus primarily on serving the unbanked and underbanked populations?
Yes, it is. Stellar aims to address the main needs of the unbanked and underbanked populations by providing low-cost and efficient cross-border transactions. The project's platform is designed so that people without access to traditional banking services to create and manage digital accounts, and exchange tokens with others.
What's the significance of Stellar's partnerships, such as its relationship with IBM?
Most and foremost, partnerships expand Stellar's reach and adoption. They also serve as a demonstration of use case development. Moreover, such collaborations as with IBM build trust and credibility amongst Stellar's users and investors.
