The stellar network is a decentralized, fast, scalable and unique blockchain designed for financial products and services. The network was launched in 2014 in order to connect global financial systems by offering a protocol for payments of payments and financial institutions that facilitate world payments and almost instantaneous currencies. In 2024, Stellar published Protocol 20, allowing complete intelligent contracts to the network. The network transforms international payments and sending of funds thanks to safer, faster and more affordable solutions, and connecting active world to DEFI to allow complete daily financial services.
The native digital currency of the stellar network – Lumens (“XLM”) – is used to pay the network transaction costs. (XLM can also be used as an intermediate currency for operations. How it works: the protocol converts money in a few seconds, first in XLM, then in the requested currency.)
Stellar’s unique consensus mechanism (POA) – The Stellar Consensus Protocol (SCP) – differs both from proof of participation and proof of work. SCP is designed to secure the network thanks to reputation rather than computer resources or stupid cryptographic tokens. All stellar validators are required to have a publicly accessible and verifiable recording identifying themselves, strengthening confidence in the network. By design, Stellar does not provide financial incentives to ONCHAIN to manage validators, and it is not based on a power of participation or hash to secure the network. Instead, organizations perform nodes for the advantages of the network and collaborate to reach an agreement on the network level on the validity of transactions.
Stellar is a proven platform for the issue of assets; Many well -known institutions select Stellar as a favorite network to provide real assets (RWAS) Onchain. Network speed and low costs, the framework for the emission of robust assets, compliance tools and the anchoring network provide financial institutions that the infrastructure needed to tokenize assets while maintaining regulatory compliance. This approach has attracted a significant RWA volume, with hundreds of millions of dollars in stablecoins, tokenized funds and other active active people crossing the network daily. This has also led to revolutionary implementations such as Franklin Templeton’s Benji Fund, the first monetary market fund registered in the United States on a public blockchain.
Stellar’s intelligent contract of intelligent contract extends network capabilities to support sophisticated financial applications while retaining the main principles of Stellar efficiency and accessibility. Built with Rust and Weba Vismely, Soroban prioritizes performance thanks to features such as deterministic competition and multidimensional costs, allowing complex operations with predictable costs and a finality lower than the second. Security is fundamental, with RUST memory safety guarantees, design without recentrance and a framework required for authorization which makes it difficult to introduce vulnerabilities. Unlike platforms for general use, Soroban is specially designed for financial applications, supporting everything, decentralized exchanges and tokenized asset loan protocols. This is aligned with Stellar’s goal to connect traditional finances to Blockchain technology, offering developers the tools to create real daily financial services that are scalable, secure and accessible to users around the world.
