Steller is an open-source network which makes it possible for its users to create, send or trade digital representations of money, regardless of its form (USD, EUR, BTC, etc.).

It aims at creating a single network in which all of the world’s financial systems can work together.

Stellar’s software runs in an open and decentralized network and relies on the blockchain to keep it in sync.

The network also has its own native digital currency, known as Lumen (XLM). Despite Lumen (XLM) being required for initializing accounts and making transactions, Stellar does not privilege any particular type of currency over another as their goal is to reimagine the market for currency and asset transfer, while making all forms of money more useful and accessible to everyone.

Stellar Explained

In Stellar, any user can create its digital representation of a specific currency.

In its simplest of forms, Stellar works as a system which tracks ownership, much like an accountant would.

Despite not having a central authority, its network of independent computers ensure that no records or numbers are tampered with by verifying and updating its ledgers every five seconds.

Every Stellar account user has two things stored in its ledger:

1. Their account balance: which is what they own

2. What they intent to do with that they own

Computers which run Stellar’s software are called nodes and are what check and correct balances while making sure other nodes see and agree with the transactions being made.

Everything is kept in sync due to the Stellar Consensus Protocol (SCP).