What is Stellar?
Stellar is an incredible payment technology just like Bitcoin and the rest but it is open source and has more similarities with Ripple than any other cryptocurrency out there. It was founded by Jed McCaleb the person who also founded Ripple. Just like Ripple the main objective of Stellar is to be able to provide monetary service to its clients and connecting businesses with banks and digital finance in a cost-effective manner. It also facilitates the cross-border transfer of digital assets and for that reason alone is a hit among crypto enthusiasts.
It was created back in 2014 and was a simple protocol for the transfer of digital assets but later on, the stellar consensus protocol was developed which resulted in more efficiency and providing the user with a scalable environment for the transfer of crypto. Stellar has more uses than Ripple as instead of focusing on the main banking media and helping the companies develop a communicative approach with the financial institutions Stellar is more focused on developing monetary markets. It is also used for the sake of loan programs and their distribution to the unbanked population in an effective and scalable way.
Unique aspects of Stellar
Just like every other cryptocurrency Stellar is also reliant on the idea of decentralisation and runs on the blockchain media. It also has a main distribution ledger which is updated every 2 to 5 seconds and the main line of difference between Stellar and Bitcoin is the consensus protocol on which it runs. The consensus protocol allows Stellar to refrain from relying on the entire miner network and thus the transaction speeds are very promising along with the fact that every transaction costs less and less in the long run for a specific user.
Instead of relying on the complete miner network to approve and validate a transaction which results in more time and money in the long run it employs a slice or specific part of the network to facilitate and validate the transaction in real-time. Each node on which the transaction gets completed then chooses a series of other trustworthy nodes to validate the whole transaction and once all the nodes have done validating the transaction it is recorded as successful or approved within the digital ledger.
Why you should invest in Stellar?
The most pushing reason you could have for investing in Stellar is that it is well equipped with the latest regulatory practices and therefore employ the use of KYC (know your customer) and AML (anti-money laundering) policies. This means that the platform is as secure as it can get and worth investing in.
The very use of the consensus algorithm allows the platform to be extremely cost-effective and scalable while validating the transactions in real-time without stomping it on the entire miner network. It is not on the global trading platforms just yet but with the enforcement of the regulatory policies and the standardisation of such an incredible decentralised blockchain it is only about the time when Stellar finds the proper licensing and starts trading on a global level. These are all the solid reasons to be considering investing in Stellar, take the first step, start small, and then adjust your investment strategy accordingly.
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