Stellar (XLM) Cross-Border Transactions

Stellar (XLM): Cross-Border Transactions With Stellar (XLM)

Cryptocurrency represents a revolutionary shift in the world of finance, embodying a decentralized and secure form of digital currency that operates independently of traditional banking systems. At its core, cryptocurrency is built upon blockchain technology, a distributed ledger that records transactions across a network of computers. Stellar (XLM) stands out among these digital currencies, leveraging its unique consensus algorithm to facilitate fast and cost-effective cross-border transactions. Unlike traditional financial institutions, Stellar operates on a peer-to-peer network, enabling users to transact directly without the need for intermediaries. Stellar’s blockchain ensures transparency and security, with each transaction being cryptographically verified and recorded on the decentralized ledger.

Stellar’s innovative approach extends beyond mere transactions, aiming to bridge the gap between traditional finance and the world of cryptocurrencies. Through its open-source protocol, Stellar enables the issuance and transfer of various assets, not just its native cryptocurrency XLM. This versatility makes Stellar a platform for creating and transferring value, fostering financial inclusivity and efficiency. By connecting disparate financial systems and institutions, Stellar plays a pivotal role in unlocking the potential for a more accessible, transparent, and equitable global financial ecosystem.

Stellar XLM Price (USD)

Table of Contents

What is Stellar (XLM)?

Stellar (XLM) is a decentralized blockchain platform designed to facilitate fast, secure, and low-cost cross-border transactions. Launched in 2014 by Jed McCaleb, co-founder of Ripple, Stellar aims to address the inefficiencies and barriers present in traditional financial systems, particularly in the realm of international payments. At the core of Stellar’s functionality is its consensus algorithm, which ensures agreement among network participants without relying on a central authority. This not only enhances the speed of transactions but also reduces the associated costs, making Stellar a compelling solution for financial inclusion on a global scale.

One of Stellar’s distinguishing features is its focus on enabling the seamless exchange of various assets, not limited to its native cryptocurrency, XLM. This versatility positions Stellar as a bridge between different currencies and financial systems, allowing users to tokenize and transfer a wide range of assets, including fiat currencies, commodities, and even other cryptocurrencies. Stellar’s commitment to inclusivity and interoperability has garnered support from various financial institutions and businesses, further solidifying its role in revolutionizing the way value is transferred and accessed across borders.

Stellar (XLM) logo

How Does Stellar Work?

Stellar (XLM) operates on a decentralized blockchain platform designed to streamline and enhance cross-border transactions. The key components of how Stellar works include its consensus algorithm, native cryptocurrency (XLM), and the Stellar Development Foundation (SDF).

  1. Consensus Algorithm: Stellar employs a unique consensus algorithm known as the Stellar Consensus Protocol (SCP). Unlike traditional proof-of-work systems, SCP does not rely on energy-intensive mining. Instead, it achieves consensus through a federated Byzantine agreement, where nodes on the network communicate to validate and agree on transactions. This consensus mechanism contributes to faster transaction confirmations, typically taking only a few seconds, and reduces the overall energy consumption associated with the network.

  2. Native Cryptocurrency (XLM): The native cryptocurrency of the Stellar network is called Lumens (XLM). Lumens play a crucial role in facilitating transactions and preventing spam on the network. Users can hold and transfer Lumens, but Stellar’s real innovation lies in its ability to handle any type of asset. Lumens act as a bridge between different currencies and assets, allowing for efficient and rapid conversion during cross-border transactions. The use of Lumens helps maintain a liquid and interconnected financial environment on the Stellar network.

  3. Stellar Development Foundation (SDF): The Stellar Development Foundation is a non-profit organization that oversees the development and promotion of the Stellar protocol. The SDF plays a crucial role in maintaining and improving the protocol’s open-source code, supporting the community, and collaborating with businesses and financial institutions to drive adoption. The foundation’s mission is to promote financial inclusivity by providing a reliable and accessible platform for individuals and organizations to engage in secure and efficient cross-border transactions.

In summary, Stellar’s innovative consensus algorithm, native cryptocurrency Lumens (XLM), and the ongoing efforts of the Stellar Development Foundation collectively contribute to the platform’s ability to revolutionize cross-border transactions by providing a fast, cost-effective, and inclusive financial infrastructure.

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Who Are The Founders of Stellar XLM?

Stellar (XLM) was founded by Jed McCaleb and Joyce Kim. Jed McCaleb is a well-known figure in the cryptocurrency space and was also a co-founder of Ripple, another prominent blockchain and cryptocurrency project. McCaleb played a key role in the early development of Stellar, envisioning it as a platform that could address some of the shortcomings of traditional financial systems, particularly in the area of cross-border transactions.

Joyce Kim, on the other hand, was one of the co-founders alongside McCaleb. Together, McCaleb and Kim established the Stellar Development Foundation (SDF) in 2014. The foundation is a non-profit organization dedicated to the development and promotion of the Stellar protocol. The goal of the Stellar Development Foundation is to foster global financial access, literacy, and inclusion through the advancement of the Stellar network.

It’s worth noting that while Jed McCaleb and Joyce Kim were instrumental in founding Stellar, the project has since evolved with contributions from a broader community of developers, contributors, and supporters.

What Makes Stellar Unique?

Stellar (XLM) stands out in the cryptocurrency space due to several unique features and attributes that contribute to its distinctiveness:

  1. Stellar Consensus Protocol (SCP): Stellar utilizes the Stellar Consensus Protocol, a federated Byzantine agreement algorithm, to achieve consensus among nodes in the network. SCP is designed to be more energy-efficient than traditional proof-of-work systems, making transactions faster and reducing the environmental impact associated with blockchain networks.

  2. Focus on Cross-Border Transactions: Stellar’s primary focus is on facilitating cross-border transactions and providing a solution to the inefficiencies of traditional international payment systems. Its network enables fast and low-cost transfers of value across borders, making it particularly suitable for individuals and institutions engaged in global transactions.

  3. Asset Agnostic Platform: Stellar is not limited to its native cryptocurrency, Lumens (XLM). The platform is asset-agnostic, allowing users to tokenize and transfer various types of assets, including fiat currencies, cryptocurrencies, and commodities. This flexibility makes Stellar a versatile platform for creating, transferring, and exchanging a wide range of financial instruments.

  4. Decentralized Exchange (DEX): Stellar features a built-in decentralized exchange that facilitates the seamless conversion of one asset to another. This enables users to trade different assets directly on the Stellar network without relying on centralized exchanges, enhancing liquidity and reducing counterparty risk.

  5. Stellar Development Foundation (SDF): Stellar is supported by the Stellar Development Foundation, a non-profit organization dedicated to the advancement of the Stellar protocol. The foundation plays a crucial role in promoting the adoption of Stellar, supporting the development community, and ensuring the ongoing improvement of the protocol.

  6. Financial Inclusion Mission: Stellar has a strong commitment to financial inclusion, aiming to provide access to financial services for people around the world who are underserved or excluded from traditional banking systems. Stellar’s technology is designed to make financial services more accessible, affordable, and inclusive, aligning with its mission to create a more equitable global financial ecosystem.

These unique features collectively position Stellar as a blockchain platform that goes beyond simply being a cryptocurrency and strives to address real-world challenges in the financial industry, particularly in the realm of cross-border payments and financial inclusion.

What Gives Stellar Value?

The value of Stellar (XLM) is derived from various factors that contribute to its utility, adoption, and overall significance within the cryptocurrency and blockchain ecosystem. Here are key elements that contribute to the value of Stellar:

  1. Cross-Border Transactions: Stellar is designed to facilitate fast and low-cost cross-border transactions. Its focus on improving the efficiency of international payments by reducing settlement times and transaction costs makes it a valuable solution for individuals, businesses, and financial institutions engaged in global transactions.

  2. Decentralized Exchange (DEX): Stellar features a decentralized exchange that allows users to trade various assets directly on the platform. This functionality enhances liquidity and provides users with the ability to convert between different currencies and assets seamlessly, contributing to the overall value proposition of Stellar.

  3. Asset Agnosticism: Stellar’s blockchain is asset-agnostic, meaning it supports the issuance and transfer of a wide range of assets beyond its native cryptocurrency, Lumens (XLM). This versatility makes Stellar a valuable platform for tokenizing and transferring various financial instruments, including fiat currencies, commodities, and other cryptocurrencies.

  4. Stellar Development Foundation (SDF): The Stellar Development Foundation, a non-profit organization, plays a vital role in supporting the development, adoption, and improvement of the Stellar protocol. The foundation’s commitment to the advancement of the technology contributes to the overall credibility and sustainability of the Stellar ecosystem.

  5. Security and Consensus Mechanism: Stellar utilizes the Stellar Consensus Protocol (SCP), a robust and energy-efficient consensus algorithm. The security and reliability of the protocol enhance trust among users, developers, and businesses, contributing to the overall value of the Stellar network.

  6. Financial Inclusion Mission: Stellar’s mission to promote financial inclusion and provide access to financial services for underserved populations adds a social and humanitarian dimension to its value. The platform’s potential to empower individuals who lack access to traditional banking systems contributes to its overall positive impact on a global scale.

  7. Community and Adoption: The level of community support and adoption by businesses and financial institutions also plays a significant role in determining the value of Stellar. A strong and engaged community, along with increased adoption, enhances the network effect and fosters the growth of the Stellar ecosystem.

  8. Innovation and Partnerships: Stellar’s commitment to innovation and partnerships with other projects, businesses, and organizations contributes to its relevance and competitiveness in the rapidly evolving blockchain and cryptocurrency space. Collaborations and integrations with established entities can further validate the utility of Stellar.

In summary, the value of Stellar (XLM) is derived from its technological capabilities, focus on cross-border transactions, versatility in supporting various assets, commitment to financial inclusion, and the ongoing support and development efforts led by the Stellar Development Foundation. The combination of these factors positions Stellar as a valuable player in the broader blockchain and financial technology landscape.

How Many Stellar (XLM) Coins are in Circulation?

There are 28.24 billion Stellar (XLM) coins in circulation. This number constantly fluctuates slightly as new transactions occur on the Stellar network.

Here’s some additional information you might find helpful:

  • Total supply: 50.01 billion XLM (This is the maximum number of XLM that will ever be created.)
  • Circulating supply percentage: Roughly 56.5% of the total supply is currently in circulation.
  • Burned coins: In 2019, the Stellar Development Foundation intentionally burned over half of the existing XLM supply. This means that those coins are permanently removed from circulation, potentially increasing the value of the remaining XLM.

How to Use Stellar?

Using Stellar (XLM) involves several steps, ranging from setting up a wallet to participating in transactions on the Stellar network. Here is a general guide on how to use Stellar:

  1. Choose a Wallet:

    • Start by selecting a Stellar wallet to store and manage your XLM. There are various wallet options available, including desktop wallets, mobile wallets, and hardware wallets. Some popular choices include StellarTerm, Ledger Nano S (hardware wallet), and Lobstr (mobile wallet).
  2. Create a Wallet:

    • Follow the instructions provided by the chosen wallet to create your Stellar wallet. This typically involves generating a secure seed phrase or private key. Safeguard this information as it is crucial for accessing your wallet and funds.
  3. Get XLM:

    • Acquire Stellar Lumens (XLM) through cryptocurrency exchanges or peer-to-peer transactions. You can purchase XLM using fiat currency or exchange other cryptocurrencies for XLM.
  4. Transfer XLM to Your Wallet:

    • Once you have XLM, transfer it to your Stellar wallet by using the wallet’s receive function. This will provide you with a wallet address to which you can send XLM from the exchange or another wallet.
  5. Explore the Stellar Network:

    • Familiarize yourself with the Stellar network and its features. You can explore the decentralized exchange (DEX) within the wallet to trade assets or tokens issued on the Stellar network. The DEX allows you to convert one asset into another directly on the Stellar blockchain.
  6. Send and Receive XLM:

    • Use your Stellar wallet to send XLM to other users or receive XLM from them. Transactions on the Stellar network are known for their speed and low fees, making it an efficient way to transfer value, especially across borders.
  7. Tokenize Assets (Optional):

    • If you wish to tokenize assets other than XLM, explore the ability to issue and transfer tokens on the Stellar network. Stellar supports the creation of custom tokens, representing various assets such as fiat currencies, commodities, and even other cryptocurrencies.
  8. Stay Informed:

    • Keep yourself updated on the latest developments, upgrades, and news related to Stellar. Following official channels, community forums, and social media can help you stay informed about the ecosystem.
  9. Security Measures:

    • Practice good security hygiene by keeping your wallet’s seed phrase or private key secure. Use secure passwords, enable two-factor authentication if available, and be cautious of phishing attempts.
  10. Explore Additional Features:

    • Depending on the wallet you choose, there may be additional features and services available, such as staking, participation in governance, or integration with decentralized applications (dApps) built on the Stellar network.

Remember that this is a general guide, and the specific steps may vary depending on the wallet you choose and any updates to the Stellar network. Always refer to the documentation provided by your chosen wallet and stay informed about best practices in cryptocurrency security.

How to Choose a Stellar Wallet?

Before diving into Bybit Wallet as the “best” option for XLM, let’s understand the key factors to consider when choosing any Stellar wallet:

1. Security: This is paramount! Your wallet should securely store your private keys, which control access to your XLM.

  • Hardware wallets: Top-tier security, storing keys offline in a physical device like Ledger or Trezor. Ideal for large XLM holdings.
  • Software wallets: Downloadable apps for your computer or phone. More convenient but less secure than hardware wallets. Popular options include Lobstr, Solar Wallet, and Trust Wallet.
  • Exchange wallets: Hold your XLM on a cryptocurrency exchange like Coinbase or Kraken. Convenient for trading but least secure, as you don’t control your private keys.

2. Features: Consider what you need your wallet for:

  • Basic sending and receiving: Most wallets offer this.
  • Trading and DeFi: Look for wallets that integrate with Stellar DEXs (decentralized exchanges).
  • Fiat on-ramps and off-ramps: Buy and sell XLM with fiat currency directly in the wallet.
  • Multi-signature: Advanced security feature requiring multiple keys to authorize transactions.


3. User-friendliness: Choose a wallet with a clear and intuitive interface, especially if you’re new to crypto.

4. Reputation: Opt for wallets with a good track record and positive user reviews.

Why Bybit Wallet Might Be a Good Option for XLM:

Bybit Wallet ticks many of these boxes:

  • Security: Uses multi-signature technology and industry-standard security practices.
  • Features: Supports sending, receiving, and trading XLM. Integrates with the Stellar DEX for advanced trading. Offers fiat on-ramps and off-ramps in some regions.
  • User-friendliness: Simple and intuitive interface.
  • Reputation: Backed by Bybit, a reputable crypto exchange.

Recommendable Crypto Coins

Tether (USDT):

Tether (USDT) is a type of cryptocurrency known as a stablecoin. Its value is pegged to that of traditional fiat currencies, such as the US Dollar, with each USDT intended to be equivalent to one USD. Tether is often used as a stable store of value within the volatile cryptocurrency market, allowing users to move funds quickly between different exchanges without the inherent volatility of other cryptocurrencies.

Binance Coin (BNB):

Binance Coin (BNB) is the native cryptocurrency of the Binance exchange, one of the largest cryptocurrency exchanges globally. BNB was initially created as an ERC-20 token on the Ethereum blockchain but later migrated to Binance’s native blockchain, Binance Chain. BNB has various use cases, including trading fee discounts on the Binance platform, participating in token sales on the Binance Launchpad, and powering decentralized applications (dApps) on Binance Smart Chain.

Ripple (XRP):

Ripple (XRP) is both a digital payment protocol and a cryptocurrency. Ripple aims to facilitate fast, low-cost international money transfers and payments. Unlike many other cryptocurrencies, XRP does not rely on blockchain mining but instead uses a consensus algorithm to validate transactions. Ripple has partnered with numerous financial institutions and banks to improve the efficiency of cross-border payments.

USD Coin (USDC):

USD Coin (USDC) is a fully-backed and regulated stablecoin pegged to the US Dollar on a 1:1 basis. It is issued by regulated financial institutions and can be redeemed for one US Dollar. USDC provides the stability of traditional fiat currencies while leveraging the benefits of blockchain technology, making it a popular choice for traders and investors seeking a stable value within the cryptocurrency market.

Cardano (ADA):

Cardano (ADA) is a blockchain platform known for its focus on scalability, sustainability, and interoperability. Developed by IOHK, Cardano aims to provide a secure and scalable infrastructure for the development of decentralized applications and smart contracts. It utilizes a unique consensus algorithm called Ouroboros and aims to improve blockchain governance and sustainability.

Dogecoin (DOGE):

Originally created as a lighthearted and meme-inspired cryptocurrency, Dogecoin (DOGE) has gained significant popularity. Despite its origins, DOGE has found practical use cases, including tipping and charitable donations. Its active community and high-profile endorsements have contributed to its widespread recognition and use.

Solana (SOL):

Solana (SOL) is a high-performance blockchain platform designed for decentralized applications (dApps) and crypto projects. Solana distinguishes itself through its fast transaction speeds and low fees, making it an attractive option for developers and users alike. It uses a unique consensus mechanism called Proof of History (PoH) in conjunction with Proof of Stake (PoS) for scalability and efficiency.


TRON (TRX) is a blockchain platform aiming to build a decentralized internet. It facilitates the creation and deployment of decentralized applications (dApps) and smart contracts. TRON focuses on content sharing and entertainment applications, seeking to enable a decentralized digital ecosystem. Its acquisition of platforms like BitTorrent has expanded its reach within the decentralized content-sharing space.

Final Thoughts on Stellar (XLM)

In conclusion, Stellar (XLM) has emerged as a pioneering force within the cryptocurrency landscape, uniquely positioned to address challenges associated with cross-border transactions and financial inclusivity. The platform’s innovative Stellar Consensus Protocol (SCP) not only ensures rapid and cost-effective transactions but also distinguishes itself for its energy efficiency, a crucial aspect in the current global discourse on sustainable blockchain solutions. Stellar’s commitment to financial inclusion, demonstrated by its asset-agnostic approach and support for various types of assets on its decentralized exchange, underscores its ambition to create a more equitable global financial ecosystem.

Furthermore, Stellar’s value extends beyond its native cryptocurrency, Lumens (XLM), as it serves as a versatile platform for the creation and transfer of a multitude of assets. The collaborative efforts of the Stellar Development Foundation (SDF) and its ongoing partnerships contribute to the robustness and credibility of the network. As Stellar continues to evolve and gain adoption, its emphasis on providing accessible, secure, and efficient financial services positions it as a key player in reshaping the future of cross-border transactions and contributing to the broader vision of decentralized finance.

Frequently Asked Questions on Stellar (XLM)

Stellar’s mission is to promote financial inclusion by providing accessible, low-cost financial services. The platform aims to connect individuals, businesses, and financial institutions globally, fostering a more inclusive and equitable financial ecosystem.

Stellar is known for its fast transaction speeds, with most transactions being confirmed in a matter of seconds. This efficiency is a result of the Stellar Consensus Protocol’s design.

Stellar’s DEX enables users to trade assets directly on the blockchain, reducing the need for centralized exchanges. This enhances liquidity, provides a seamless conversion between different assets, and minimizes counterparty risk.

Stellar employs the Stellar Consensus Protocol for security and consensus. Users are advised to follow best practices for cryptocurrency security, such as safeguarding their private keys and enabling two-factor authentication when available.

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