What is Stellar (XLM) and how does it work?

[chainsniff]

Stellar is an open-source blockchain network designed to make global payments faster, cheaper, and more accessible. Created in 2014 by Jed McCaleb, one of Ripple's co-founders, Stellar focuses on connecting financial institutions, payment providers, and individuals through a decentralized network. Its native cryptocurrency, Lumens (XLM), acts as both a utility token and a bridge asset that helps facilitate transactions between different currencies.

When a transaction is initiated on Stellar, the network can automatically convert one asset into another using its built-in decentralized exchange. This allows users to send money across borders in seconds while paying only a fraction of a cent in fees. Because of its speed and efficiency, Stellar has become a popular platform for remittances, stablecoins, and tokenized assets.

[ed]

xlm is like the plumbing of the ecosystem. nobody talks about it until something important needs to flow through it