Review on Stellar by Aniruddh Ravel

Name: Stellar
Item: Stellar
Rating: 4

June 18, 2019

Stellar a scalable cryptocurrency

Stellar is an open source protocol which is decentralized for the digital currency to the fiat currency. It allows for the cross-border transaction between all the pair of currencies. The Stellar development foundation which is a non-profit organization supports the Stellar protocol.

The network of the Stellar is based on the blockchain technology and is a publicly distributed ledger. It also allows for the transfer of not only payments but also the transfer of value. The lumens (XLM) is the native digital asset of the Stellar. In simple words, it can be said that the Stellar is the network of the payment and the lumens (XLM) is its cryptocurrency.
﻿
Stellar was later launched on the payment network which was decentralized and the protocol along with the native currency. When the network was launched, it had Stellar which amounted to 100 billion out of which 25 percent would be given to the non-profit organisations who were working toward the financial inclusion. The cryptocurrency which was initially named as the Stellar but was later renamed as the lumens or the XLM.
﻿

Pros

Stellar cryptocurrency is scalable. It offers the best combination of the cost of the transaction, per the second transaction and the average settlement of the huge blockchain network. The recent tests which have been conducted to test the above-mentioned traits reveal that the Stellar network can handle 10000 transactions in one second with 5 seconds of the average settlement time. It is considered great for an on-chain settlement.
Stellar is a great cryptocurrency to bring in liquidity. An asset which is liquid can be traded on the Stellar with the use of the Stellar dex.
Stellar network has also enabled the smart contracting both for the process of development and execution.
Stellar network also supports the expansion of the ecosystem. The greatest benefit of the Stellar network is that it has all the tools available in order to support the engagement of the already existing financial institutions.
Speed of the transaction is really high and low cost of transactions. The confirmation period of the transaction is as low as 3 to 5 seconds.

Cons

Stellar faces great competition in the cryptocurrency market and it gets quite difficult to hold the ground.
There is a fixed minimum limit for having the access which requires the user to have at least 20 coins of XLM in their wallet in order for it to work.
The price follows the Ripple instead of following the bitcoin and hence the Stellar drops with the drop in the XRP.
The Stellar network is not completely decentralized.