The Beginner's Guide to Stellar Blockchain 🌟 (Part 1)
Some time ago, I overheard someone I know (who was new in the space) mention that they had no idea there were other blockchain networks.
It's true that newcomers often start with well-known chains like Bitcoin and Ethereum. However, there are other fascinating networks worth exploring and leveraging.
So, today, I'll take you on a short journey through the world of Stellar, an open-source decentralized blockchain network introduced in 2014 by Jed McCaleb, designed to revolutionize financial transactions and asset exchanges across international borders.
This beginner’s guide to understanding Stellar is inspired by insights from Charles Mbaogu, our VP at Havilah Blockchain Studios, and informed by detailed resources from Rejolut.com and Stellar.org
What is Stellar and Why Use Stellar? 🚀
Stellar is a decentralized blockchain platform designed to facilitate fast, low-cost transactions and digital asset exchanges across international borders. Jed McCaleb founded Stellar after co-founding Ripple, with a vision to create a platform that complements existing financial systems rather than replaces them.
Why use Stellar when there are other blockchain networks like Ethereum?
Well, it all comes down to the specific advantages offered by Stellar, thanks to its unique Stellar Consensus Protocol (SCP), a proof-of-agreement (PoA) consensus mechanism.
Here are several reasons to consider using Stellar:
⏱️ Fast Transactions: Transactions on the Stellar network are typically confirmed within 2-5 seconds.
💸 Low Transaction Costs: The transaction fees on Stellar are minimal, currently at 0.00001 XLM per transaction.
💎Asset Tokenization: Stellar allows for the creation, issuance, and management of tokens, representing various assets like US dollars, gold, or real estate.
🌐 Decentralized Exchange (DEX) & Cross-Border Payments: Stellar's built-in DEX promotes liquidity and interoperability, enabling seamless asset trading without intermediaries.
What do you find most interesting about Stellar so far? 😀
Stay tuned for the rest of this guide in my next post! ⏭