Buy Stellar

Stellar is a blockchain network used to transfer currencies and digital assets. The project was launched in 2014 with the goal of simplifying the way money is sent, exchanged and invested. Traditional financial transactions are often complex, costly and time-consuming, especially when they take place across borders.

Stellar solves this problem by using its native currency Lumens (XLM) as a bridge between different currencies. This allows users to easily transfer the value of different currencies and assets across the blockchain. Stellar also reduces the time and costs associated with international bank transfers.

Stellar allows organizations and businesses to issue their own digital currencies, which can represent fiat currencies or physical goods for example. This opens up new possibilities for value transfer. The project also supports the creation of simple smart contracts and multi-signature accounts, allowing for automated payments and advanced authorization structures.

Who founded Stellar?

Stellar was founded in 2013 by Jed McCaleb and Joyce Kim. McCaleb previously worked at the Mt. Gox crypto exchange and was CTO at Ripple, where he designed the XRP Ledger. Kim is a co-founder and previously served as a director at SDF. Additionally, Denelle Dixon and David Mazieres, author of the Stellar Consensus Protocol, have also contributed significantly to Stellar. The project is currently managed by the Stellar Development Foundation.

Stellar is a versatile platform that offers a wide range of features for both individual users and businesses. The main user features of Stellar:

• Cross-border payments: Stellar allows you to transfer value around the world quickly and at a low cost.
• Issuance of digital assets: Businesses and financial institutions can issue their own tokens on Stellar. These tokens can represent real currencies, stocks, or other assets, opening up new possibilities for financing and tokenization.
• Smart contract creation: Stellar supports the creation of smart contracts. While its capabilities are more limited than some competitors, it does allow for automated execution of agreements and processes.
• Micropayment execution: Stellar is well-suited for micropayments due to its low transaction fees. This opens the door to new business models such as pay-per-item for online content or small, automated payments for the use of internet services.

The Stellar Network simplifies cross-border transactions through a number of technologies. The backbone of the Stellar Network is Stellar Core, which is responsible for validating transactions and maintaining consensus.

Stellar Consensus Protocol (SCP)

Unlike the energy-intensive Proof-of-Work (PoW) mechanism, Stellar uses the Stellar Consensus Protocol (SCP). In this protocol, nodes (also called validators) elect other trusted nodes to share information about the state of the network.

This protocol allows the network to reach consensus without relying on a closed group of validators. Anyone can set up a validator on the Stellar network, which promotes decentralization. SCP uses Federated Byzantine Agreement for fast and flexible consensus without the need for mining.

Transactions on the Stellar network are processed as operations that are part of transaction envelopes. In addition to transaction data, these envelopes also contain signatures from the sender, which guarantee authenticity and authorization. SCP ensures that nodes in the network agree on the order of transactions, allowing transactions to be confirmed within seconds.

Anchors

In addition to enabling fast and cheap transfers of traditional currencies, Stellar also supports the issuance of digital assets. This is done via Anchors; trusted entities on the network that accept deposits of traditional or digital currencies and in return issue tokens on the Stellar network. These tokens can then be traded and converted back to the native currency via the same Anchor or another Anchor that supports the currency in question.

Decentralized Exchange (DEX)

Stellar has a built-in decentralized exchange (DEX) that is directly integrated into the network. Users can buy and sell any asset issued on the network without going through traditional exchanges. This is made possible by Stellar’s order book system, where user orders are placed directly on the network and matched automatically.

Horizon and Stellar Laboratory

Both Horizon and Stellar Laboratory play important roles within the network. Horizon is an API that helps developers build applications on the Stellar network by providing easy access to blockchain data. Stellar also supports developers with Stellar Laboratory, a web application that allows users to create transactions and experiment with Stellar, helping them learn more about the network.

XLM, also known as Lumens, is the native cryptocurrency of the Stellar network and plays an important role within the ecosystem. XLM acts as a bridge for transactions between different currencies on the network, allowing for a smooth exchange from one currency to another.

Each account on the Stellar network must hold at least 1 XLM as an anti-spam measure. Additionally, transaction fees, expressed as a fraction of a lumen, are used to protect the network from being overloaded by attacks. The maximum supply of XLM tokens is capped at 50 billion.

Stellar stands out in the blockchain space with several innovative features and functions. Here are the unique features that set Stellar apart:

• Stellar Consensus Protocol (SCP): The SCP consensus mechanism used by Stellar provides an efficient, sustainable, and scalable method of achieving consensus within the network.
• Making financial services accessible: Stellar makes financial services more accessible worldwide by simplifying cross-border payments and enabling the issuance of digital assets.
• Low transaction fees: Stellar has very low transaction fees, making the platform ideal for microtransactions and low-cost decentralized financial services.
• Multi-currency transactions: Using Lumens (XLM) as an intermediary currency, Stellar provides a smooth exchange of value between different currencies.

Buy Stellar (XLM) at Bitvavo. Our platform is available to both novice and advanced investors. These are the steps to buy XLM via our website or mobile app:

1. Register or log in to your Bitvavo account.
2. Make a deposit by clicking "Deposit".
3. Go to the Stellar purchase page.
4. Determine the amount you want to spend in euros or the number of XLM you wish to buy and confirm by clicking "Buy".

The price of Stellar coins depends on the current market value. Once your purchase is complete, the XLM tokens will be deposited directly into your Bitvavo account, making it easy to manage and sell them to quickly respond to price changes.

Your Stellar coins are safely stored in your Bitvavo account, where the majority of assets are managed in offline cold storage for maximum security. Enabling two-factor authentication (2FA) is highly recommended as an additional security measure for your account.

For those who prefer personal storage, Stellar coins are supported by most modern software and hardware wallets. You can buy XLM and send them to your personal wallet by simply linking the wallet address to your Bitvavo account, giving you full control over your coins.