Today is the sixth anniversary of the Stellar (XLM) blockchain.
It seems incredible how an underrated blockchain like Stellar's (XLM) celebrates 6 years today since its launch on July 31, 2014.
Let's go back to some important historical moments of this blockchain.
Stellar blockchain history
While most people in the industry know this blockchain, at least by its name and its market cap classification, few know its origins and the minds behind it, such as Jed McCaleb, founder of Mt Gox and co-founder of Ripple (XRP), and Joyce Kim.
Before the launch of this blockchain, McCaleb had created a website with an intriguing name, "Secret Bitcoin Project" with the following message:
“When I sold mt.Gox a few years ago, Bitcoin was trading at less than a dollar. Today Bitcoin exists in a new environment. mt.Gox is struggling to keep up. Now, I am building something that will be better for Bitcoin and better for you.
I am looking for alpha testers. Jed ”
Meanwhile, the Stellar Development Foundation was also born in collaboration with the CEO of Stripe Patrick Collison, who financed the project with $ 3 million and allowed its development and launch in the market.
The main objective was provide a decentralized payment network with its own cryptocurrency, XLM.
XLM cannot be mined / mined as the team decided to generate all the tokens in advance – they are $ 100 billion distributed according to the methods defined in the project whitepaper.
For example, 25% of supply goes to non-profit structures operating in the field of financial inclusion, while 2%, or 2 billion XLM, was paid to Stripe as a return on investment made. Considering that the price was initially around $ 0.002, Stripe had the opportunity to get $ 4 million immediately compared to the 3 invested.
This blockchain aims promote financial development and simplify cross-border payments, in stark contrast to the banking system and the slow pace of traditional systems.
And for these reasons, Stellar has not evolved much in terms of smart contracts, but only involves around ten operations, including:
- a KYC (Know Your Customer) style compliance system,
- a multiple signature system
- A decentralized exchange (DEX).
All of this is ensured by the Stellar Consensus Protocol (SCP), a protocol released in April 2015, under the direction of David Mazieres. It is based on a type of consensus called FBA (Federated Byzantine Agreement), where the nodes that are added to the network identify other reliable nodes and in this way a quorum is reached.
The role of the Stellar XLM token
Regarding Lumen (XLM), it can be considered as an exchange tool that allows you to interact with the network: in fact, each account must have a minimum of 1 XLM to operate.
Rates are 100 stroops, which equals 0.00001 XLM.
Over time, there have been different partnerships with different banks, such as Oradian in Nigeria in 2015, Deloitte Digital Bank and ICICI Bank in 2016, while in 2017 with IBM and KickEX to support cross-border transactions in the South Pacific area.
Total supply of $ 100 billion was reduced by 50% last year after the community voted to reduce it and also eliminate inflation. Of those 50 billion, 20 billion are on the market and the remaining 30 billion are in the hands of the team that uses it to support the ecosystem (2 billion to support the ecosystem, 12 billion for direct development, 10 billion million for investment and 6 billion for possible future acquisitions).
The solution to decrease supply, although drastic, seems to have had at least a positive impact on the price of the asset, which has plummeted day after day, but has continued to increase since the beginning of the year, except for the period of the market crash. cryptocurrencies in general. Currently, the price is around $ 0.096.