Insights

Spotlight – Stellar (XLM)

Jed McCaleb founded Stellar with the lawyer Joyce Kim after leaving Ripple in 2013 over disagreements about the company’s future direction. McCaleb says that “The whole original design of Stellar is that you can have fiat currencies and other kinds of forms of value run in parallel with each other and with crypto assets. This is super important to drive this stuff mainstream.”

Stellar is an open network allowing money to be moved and stored. The network’s native token; lumens, serves as the bridge providing a less expensive way to trade assets across borders. The point of this is to challenge existing payment providers, who charge high fees for similar services.

This may sound similar to Ripple; That’s because Stellar was originally based on the Ripple Labs protocol. The blockchain was created as a result of hard fork, and the code has since been rewritten.

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