Stellar (XLM)

Cross-Border Payments

Stellar enables fast and low-cost international money transfers. It helps people and businesses send money across countries quickly and affordably.

Asset Tokenization

Stellar allows creating digital tokens that represent real-world assets like currencies, stocks, or real estate. This makes trading and managing these assets easier and more efficient.

On/Off Ramps

Stellar provides simple ways for users to convert cash to digital assets and vice versa, connecting traditional payment methods with blockchain.

Microtransactions

The network supports very small payments with low fees, useful for things like paying for online content or services in tiny amounts.

Humanitarian Aid

Stellar is used to distribute aid quickly and transparently, helping organizations send funds directly to people in need.

Decentralized Finance (DeFi)

Stellar supports financial services like loans, savings, and trading without relying on traditional banks, making finance more accessible.

Pros of Stellar

• Fast transaction speeds, often completing in just a few seconds.
• Very low transaction fees, making it affordable for cross-border payments.
• Supports multiple currencies, allowing easy exchange between different types of money.
• Designed to help people in developing countries with limited access to banks.
• More decentralized than some competitors due to a larger pool of validators.
• Has strong partnerships, including with big companies like IBM.
• Uses a unique consensus protocol that speeds up authentication.

Cons of Stellar

• Faces strong competition, especially from Ripple, which shares a similar origin.
• Smaller development team compared to some rivals, which may affect speed of innovation.
• Price has not reached previous highs and can be less stable compared to top cryptocurrencies.
• Some users see it as less decentralized than ideal because of its network structure.
• Requires trust in stablecoin issuers for some transactions.
• The ecosystem and community are smaller and less hyped compared to other popular cryptos.

Founders of Stellar

Stellar was founded in 2014 by Jed McCaleb, Joyce Kim, and David Mazières. Jed McCaleb is also known for co-founding Ripple and creating the Stellar Development Foundation. Joyce Kim is a lawyer who helped start the project, and David Mazières contributed to the consensus protocol used by Stellar.

Key Investors in Stellar

• Stripe: A major payment processing company that supported Stellar early on.
• Plug and Play Ventures and Plug and Play Fintech Accelerator: Venture capital firms that invest in fintech startups, including Stellar.
• Corazon Capital: An investment firm backing Stellar.
• Stellar Development Foundation: The nonprofit organization that holds a large portion of Stellar tokens and funds development and adoption efforts.

Strategic Partnerships

• Stellar has partnered with companies like IBM to expand its blockchain network for cross-border payments.
• It also invested in crypto platforms like Abra, aligning with its mission for financial inclusion.

These investors and partners help support Stellar’s growth and adoption in the financial technology space.

Halal Status of Stellar

Yes, Stellar is generally considered halal because it functions as a digital currency and payment network without involving interest (riba) or gambling (maysir), which are prohibited in Islamic finance. However, interpretations can vary, so some scholars recommend consulting a trusted Islamic finance expert for personal guidance.