You can find lot of opinions that Stellar is a fork of Ripple (XRP). But it’s not technically correct. It’s like to ask a question - whether Pepsi is a fork of Сoca-cola or not…
First of all, Stellar and Ripple have the same person behind these projects - Jed McCaleb. He was a creator and co-founder of such projects as MtGox and eDonkey.
The project launched in 2014 and gain success with growing community and investors. At first, Stellar had plenty of similarities to Ripple but then Stellar Consensus Protocol (SCP) was created. Both systems also have foundational differences. While Ripple is a closed system, Stellar is open source.
Stellar is a payment protocol that is working on the Lumen, the protocol’s native asset. The reason why Stellar was invented is to make an easy cross-boarding currency available not mostly for banks and investment organizations as it was with Ripple, but to provide a solution to most of the people, small clients and services. It’s modest and simple to use, so there is no need to have an IT sector in your company to handle with Stellar.
Stellar is working as the most decentralized cryptocurrencies nowadays. It’s based on the public ledger but with his own significant featured. Unless bitcoin-based cryptocurrencies Stellar don’t use Miners to create blocks within blockchain and confirm transactions. Instead, there is Stellar Consensus Protocol (SCP) which is not relying on miners, but instead it using Federated Byzantine Agreement (FBA) algorithm, it uses only a portion of the network to approve a transaction. It allows the system to handle more than 1000 transactions per second.
Servers run a software implementation of the protocol, and use the Internet to connect to and communicate with other Stellar servers, forming a global value exchange network. Each server stores a record of all “accounts” on the network. These records are stored in a database called the “ledger”. Servers propose changes to the ledger by proposing “transactions”, which move accounts from one state to another by spending the account’s balance or changing a property of the account.
All of the servers come to an agreement on which set of transactions to apply to the current ledger through a process called “consensus”. The consensus process happens at a regular interval, typically every 2 to 4 seconds. This keeps each server’s copy of the ledger in sync and identical.
Lumens play an anti-spam role. Each transaction has a minuscule fee (0.00001 XLM) associated with it. This fee works as a preventive measure against nefarious users flooding the network (a DoS attack). Lumens function as a security token that eliminates this large-scale transactional attack.
Lumens allow for multi-currency transactions. They work as a conduit for transactions between currencies that don’t have an existing market or one that’s difficult to access. This is only possible when there is a liquid market between XLM and each currency involved.
Stellar blockchain will make it easy and fast to send funds all over the globe. You transfer funds to Anchors which plays a bridge-like role. They exchange available assets to Stellar Lumens and then transfer it through the public ledger. After that, the other side receives their funds in Stellar and exchange them on fiat or other cryptocurrencies.
Stellar is one of the top cryptocurrencies according to the www.coimarketcap.com rating, and now you can mane it in secure and decentralized way!