Stellar: A Guide for Beginners
What is Stellar?
In simple terms, Stellar is a platform that connects people, payment systems and banks. It is a non-profit organization focused on aiding the developing world via the Stellar Network. Stellar Lumens are the digital currency used on the Stellar Network.
The Stellar Network will make international payments faster and cheaper than ever before. Stellar’s Network, like the internet, is made up of decentralized servers located all around the world. And any entity can run a server, if they so choose. An interesting feature of the Stellar network is how the network becomes more robust with the more servers that are connected to it, making it a scalable solution.
The Difference between Ethereum and Stellar
Stellar is similar to Ethereum in many ways. They are both, at heart, blockchain development platforms. And they both allow users to build decentralized applications and platforms on their networks and have ICO’s.
However, the Stellar network also utilizes concepts such as, anchors, a distributed exchange, and multi-currency transactions. Anchors are entities that people trust to hold deposits and in exchange issue them credits. Think PayPal. We deposit (or link) money into our PayPal account from our bank accounts and then use their network and platform to make payments.
But the fact that it allows for borderless payments is what makes it so progressive. These borderless payments are a direct result of its well-designed distributed exchange and multi-currency transaction technology. It is not only progressive, but also practical.
Stellar is Being Used Today
Stellar had been under the radar, until recently. The International Business Machines Corp. (IBM) announced their partnership with Stellar. IBM has its own servers connected to the Stellar network which are allowing people to transact with XLM around the world today.
Their partnership is still in its infancy. Jesse Lund, IBM’s head of Blockchain Development says more news about their partnership will come shortly.
Stellar in Your IRA
Stellar is a revolutionary payment solution with great potential, both as a company and an investment. To learn more about how you can diversify your retirement portfolio and invest in Stellar and other cryptocurrencies, give one of our IRA specialists a call today at 877-936-7175.
Five Things to know about Stellar
- Stellar is backed by IBM – These two companies have partnered up because of a common goal to fix a genuine problem. Together, they are bound to create a revolutionary payment solution.
- International Transfers are FREE – Stellar allows for financial instruments to be transferred for free, instantly, and in any currency across borders.
- XLM is Compliant with Regulations – In regards to ICO’s, Stellar is fully compliant with regulators. Like many new crypto companies, they realized it is better to be proactive and work with regulators to regulate themselves.
- Stellar Lumens (XLM) is the Actual Digital Currency – The Stellar network uses, Stellar Lumens to perform transactions. However, it also uses credit versions of numerous currencies.
- Stellar is a Non-Profit Organization – Stellar is not in it for monetary gain. Its core purpose is to help make the financial system and our current methods of transacting more fair, for everyone, everywhere.