Stellar (Stellar) is Mt-Gox and Ripple the original founder McCaleb recently launched a new similar Ripple's new payment system. Joyce King, executive director of the Stellar Development Foundation, said that Stellar will serve as a bridge between fiat currency and digital currency, which is the key to digital currency being adopted by mainstream users. This new platform is a decentralized gateway for transfers between digital currencies and fiat currencies. Like Ripple and Bitcoin, Stellar will also have its own digital currency, Stellar.

The network created by Stellar has the same function as the Ripple payment network. It can transfer any currency through it, including US dollars, euros, renminbi, yen or bitcoins. It is easy and fast. It relies on the bitcoin blockchain. Technology can connect 180 currencies in the world within 2-5 seconds, connect banks, payment systems and the general public, and reduce transaction costs and time delays caused by cross-border payments.

Stellar Consensus Protocol (SCP)

The Stellar Consensus Protocol (SCP) works in detail in Stellar's public white paper (written by Professor David Mazières). The white paper is listed on Google Scholar and has been cited 39 times at the time of writing this blog post. The paper is 32 pages long and extremely technical, containing detailed mathematical proofs of the correctness of the Federated Byzantine Agreement (FBA) consensus model.

Core technical features

• Decentralized network: A decentralized network consists of points that operate independently of each other. Transmission information is dispersed across a network of servers rather than being driven by one primary source.

• Ledger: The Stellar network is similar to a traditional ledger, recording all balances and transaction information of each individual account on the network. The complete global Stellar ledger is hosted on each server running the Stellar software, and one entity can run one Stellar network.

• Consensus: Stellar servers will communicate and synchronize with each other to ensure that transactions are valid and can be successfully applied to the global ledger. The entire process of reaching consensus on the Stellar network happens approximately every 2-5 seconds.

• Anchors, trust, and credit: Anchors are simply entities that people trust to hold their deposits and send credits into the Stellar network based on those deposits. They act as a bridge between different currencies and the Stellar network. All monetary transactions on the Stellar network (except lumens' built-in digital currency) occur in the form of credits issued by anchors.

• Distributed exchange: The Stellar ledger stores offers for people to buy or sell coins. An offer is a public commitment to exchange another credit type for a reserved price. The ledger becomes the quote for the global market. Allowing people to trade currencies in foreign exchange, while seamlessly exchanging currencies at the time of transaction.

• Multi-currency transactions: Stellar allows you to send all the currencies you hold in different currency types to anyone else through the built-in distributed exchange, and people can receive any currency through the anchors they add.

Stellar's business model

Stellar Development Foundation (SDF) or http://Stellar.org is the company that maintains the Stellar open source network. It is a non-profit organization that covers operating costs through donations and 5% of lumens issued. The Stellar network is an open source decentralized system, and the Stellar Development Foundation does not charge individuals or institutions for using the network.

Corporate donors to Stellar include Blackstone (a $29 billion global investment management firm with 13,000 employees), Google.org, Stripe, and FastForward.

The difference between Stellar and Ripple

Stellar is trying to create a better distributed payment system that can absorb the advantages of Bitcoin and Ripple, so as to surpass Ripple.

XLM is the basic digital currency used in the Stellar payment network. The total designed mining amount is 100 billion, which is the same as the total amount of Ripple. However, instead of gradually shrinking the amount of Stellar Lumens mined, it increases by 1% every year.

In the Stellar payment network, users use Stellar Lumens as the base currency, and can transfer any currency through XLM, including USD, RMB, EUR, JPY, or Bitcoin, etc.

Different from Ripple, 50% of Stellar Lumens is distributed directly to users around the world according to the distribution plan, and 25% of XLM is distributed to the financially underserved and non-profit organizations through the increased coverage plan. 20% of the stellar lumens will be allocated through the Bitcoin program. The remaining 5% is used as operating expenses for the Stellar operating company.

That is to say, 95% of XLM is sent out.

Stellar is operated by the Stellar Foundation, a non-profit organization with environmental protection, charity, and financial inclusion as its core concepts.

Partners of Stellar

1. Stellar is fully supported by the payment technology company Stripe. Stripe belongs to the fourth party payment, and the company is valued at tens of billions.

2. Big Blue IBM revealed at the Sibos 2017 conference that it has reached a cooperation with the blockchain startup Stellar, using Stellar's customized cryptocurrency to realize real-time cross-border legal tender payment settlement.

3. Deloitte Deloitte is one of the largest professional service companies in the world. Its name is known to everyone in the industry. At present, it has integrated Stellar Network to create an innovative transnational payment application. This project was announced at the New York Consensus Summit in May 2016. Deloitte Digital Bank is now able to provide cross-border real-time payments.

4. On May 11, 2017, Shenqiu Technology and Stellar held a strategic cooperation signing ceremony at Jinqiu Shanghai headquarters. The two parties will jointly establish a Sino-US joint venture, Gingpay, and use Stellar to build a An online payment platform for global users, and provides technical support for institutions and individuals accessing the Stellar network.

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