What is Stellar?

Stellar is an open-source, decentralized blockchain network purpose-built to facilitate fast, low-cost international payments, provide robust support for digital assets, and drive financial inclusion on a global scale. Founded in 2014 by Jed McCaleb and Joyce Kim, Stellar has evolved from a simple payments protocol into a comprehensive financial infrastructure at the heart of the modern crypto and Web3 ecosystem (Stellar.org).

The Core of Stellar: Mission and Technology

At its foundation, Stellar aims to connect financial institutions, businesses, and individuals by making money transfers—especially cross-border remittances—seamless and affordable. This mission is particularly relevant in regions where access to traditional banking is limited or expensive, a key reason why Stellar is seeing increasing adoption across emerging markets (Gate.com: What is Stellar and How Does it Work in 2025?).

Key Features

• Stellar Consensus Protocol (SCP): Unlike proof-of-work or proof-of-stake systems, Stellar uses the Federated Byzantine Agreement model, where each node chooses its own set of trusted peers (quorum slices) to reach rapid, decentralized consensus. This enables transaction finality in 3 to 5 seconds and allows the network to handle up to 1,000 transactions per second (Gate.com).

• Low-Cost Transactions: Transaction fees on Stellar are a fraction of a cent, making it a practical vehicle for even micro-payments and cross-border remittances (Changelly: Stellar Lumens (XLM) Price Prediction).

• Decentralized Exchange: Stellar has an integrated decentralized exchange, allowing anyone to trade between digital assets or fiat-backed tokens directly on-chain, minimizing the need for third-party exchanges (CryptoVantage: What is Stellar?).

• Smart Contract Support: While not as expressive as Ethereum’s, Stellar supports basic smart contracts and multi-signature accounts, enabling automated, programmable transactions for DeFi and payments (Stellar.org Smart Contracts).

• Interoperability: Stellar was designed as a bridge between different currencies and asset types, allowing for automatic currency conversions and the issuance of fiat-backed or commodity-backed tokens.

The Native Asset: Stellar Lumens (XLM)

XLM (Lumens) is the native cryptocurrency of the Stellar network. It serves two main purposes:

• Paying network fees and serving as a bridge asset between different currencies (Changelly).
• Ensuring account authenticity and preventing spam by requiring a minimal balance and transaction fee.

Real-World Impact and Use Cases

Stellar is widely used by financial institutions, fintech startups, and non-profits for applications such as:

• International Remittances: Stellar’s low cost and speed make it ideal for sending money across borders, especially to regions with limited banking infrastructure (Markets.com: Stellar (XLM) Price Prediction).
• Tokenization of Real-World Assets: Organizations can issue digital representations of fiat currency, commodities, or securities for faster, more transparent settlement (Stellar.org).
• DeFi Applications: From payments to lending, Stellar supports scalable decentralized finance solutions, and the Stellar Development Foundation has set ambitious goals for expanding its DeFi presence, aiming to lock in $1.5 billion TVL by 2025 (Gate.com).

Stellar in 2025: Current Trends and User Concerns

2025 is proving pivotal for Stellar. Adoption is surging in emerging markets, and the platform is targeting a top 10 position among DeFi networks. Stellar’s speed, reliability, and expanding ecosystem of tools have made it one of the most attractive blockchains for both developers and enterprises building financial applications (Gate.com).

Frequently Discussed Topics

• Scalability: As the network grows, Stellar continues to focus on ensuring high throughput and minimal congestion (Stellar.org).
• Regulatory Landscape: Stellar’s transparency and emphasis on compliance have made it appealing to regulated financial entities, increasing mainstream confidence in its solutions.
• Usability: With a fast, developer-friendly environment, Stellar enables easier onboarding for projects seeking to issue tokens or launch digital financial services.

Security and Self-Custody: The Role of Hardware Wallets

With greater adoption and increased value flowing through the Stellar network, security becomes paramount. Storing XLM and Stellar-based assets on a hardware wallet is one of the safest ways to protect your funds from online threats.

OneKey hardware wallets are fully compatible with Stellar Lumens (XLM), offering users robust security through offline private key management, intuitive user experience, and seamless integration with popular Stellar applications. For those engaging with Stellar’s expanding DeFi and asset issuance ecosystem, using OneKey ensures your assets remain secure without sacrificing convenience.

Learn More

To explore Stellar’s technology, community initiatives, and real-world use cases, visit the official Stellar website. For the latest updates, network statistics, and development resources, Stellar's developer portal offers comprehensive information.

Considering the dynamic growth of Stellar and the increasing importance of digital asset security, choosing a hardware wallet like OneKey can help protect your investments while you participate in the future of global finance.