As cryptocurrencies evolve beyond mere investment vehicles to become structures that trigger the transformation of the global financial system, one of the projects at the center of this revolution is Stellar. Aiming to open the doors of financial inclusion for millions of people without access to banking infrastructure, Stellar uses blockchain technology not only as a technological innovation but also as a social solution. This system, which focuses on low cost, speed, and accessibility in cross-border money transfers, offers a sustainable and inclusive digital economy vision for both individuals and institutions. So, what is Stellar (XLM), how does it work, and what innovations does it bring to the field? Let's take a closer look together.Definition and Origin of StellarThe question “What is Stellar (XLM) coin?” is a topic of interest for many people entering the world of digital finance. Simply put, Stellar is an open-source cross-border payment network protocol. In other words, it is a digital network that enables fast, reliable, and especially low-cost transactions between different currencies. It aims to create a more accessible and efficient system for individuals and institutions by combining traditional financial systems (such as banks and payment networks) with blockchain technology.Stellar was launched in 2014 by Jed McCaleb, one of the founders of Ripple, alongside Joyce Kim. Behind this project is the Stellar Development Foundation (SDF), a non-profit organization. The SDF's primary mission is to increase financial inclusion. In line with this, it is creating more equal access to the global financial system. The Stellar network focuses particularly on developing economies, microfinance solutions, and cross-border money transfers to achieve this goal.The network's native cryptocurrency is Lumens, known by the abbreviation XLM. The answer to the question “What is the XLM coin?” is as follows: XLM is a utility token used to facilitate transactions on the Stellar network and protect the network from spam. It is also used for purposes such as ensuring accounts on the network maintain a certain minimum balance and paying “rent” for smart contract data. In short, the Stellar XLM coin pair is seen as the heart of the digital infrastructure that enables these fast and inexpensive transfers.So, if you ask what the Stellar network is and what its purpose is, its purpose is to leverage blockchain to create a more accessible system that allows everyone, regardless of where they live, to participate in a stable global financial network. So, what is Stellar network? Stellar was designed for the exchange of money or tokens in line with this accessibility goal. It is an open-source protocol that uses the Stellar Consensus Protocol (SCP).Stellar’s ​​History: Major MilestonesThe answer to the question of when XLM was launched dates back to the beginning of the Stellar network. The Stellar project and its native currency (originally known as “stellars”) were officially launched on July 31, 2014. Initially, the non-profit Stellar Development Foundation (SDF) was created in collaboration with Jed McCaleb, Joyce Kim, and Stripe CEO Patrick Collison, and the project received $3 million in seed funding from Stripe. When the network launched, there were 100 billion stellars, 25% of which would be given to other non-profit organizations working in the field of financial inclusion. Stripe received 2% of the initial Stellar, or 2 billion, in return for the initial investment. The cryptocurrency was originally known as Stellar, but was later called Lumens or XLM. This is a milestone in the history of XLM coin.Throughout its history, Stellar has taken significant steps to develop its technology and ecosystem:2014: Stellar is founded. It was launched in July 2014 by Jed McCaleb, David Mazières, and Joyce Kim with the aim of creating "a decentralized protocol for sending and receiving money in any currency pair." Before founding Stellar, McCaleb was the co-founder of Ripple, a payment network for cross-border payments. In July 2013, McCaleb left Ripple due to reported disagreements with his fellow founders. In a blog post titled "Introduction to Stellar" published on July 31, 2014, Stellar announced that Stellar would be developed by the non-profit Stellar Development Foundation (SDF) and would control the entire initial token supply (105.00 billion XLM). 100 billion Stellar (now known as XLM) had been created when the network launched. In August 2014, the first Brazilian Bitcoin exchange, Mercado Bitcoin, announced that it would be using the Stellar network. However, in December 2014, the network was inadvertently forked due to the nodes not being able to reach consensus.2015: Stellar released an upgraded protocol with a new consensus algorithm, the Stellar Consensus Protocol (SCP), created by David Mazières. The protocol with this new algorithm went live in November 2015. The implementation of SCP is one of the key features that differentiate Stellar from mining-based Proof-of-Work (PoW) or other systems like Bitcoin. During this period, Stellar was announced to be integrated with the Praekelt Foundation's open-source messaging platform Vumi in South Africa, and Vumi would use mobile phone airtime as currency using the Stellar protocol. It also partnered with Oradian to support microfinance institutions.2016: Deloitte announced its integration with Stellar to create the cross-border payments application Deloitte Digital Bank. In December 2016, it was announced that Stellar’s ​​payment network had expanded to include mobile payments startup Coins.ph in the Philippines, ICICI Bank in India, African mobile payments firm Flutterwave, and French remittance company Tempo Money Transfer.2017: Stellar’s ​​commercial arm, Lightyear.io, launched in May 2017. In October 2017, Stellar partnered with IBM and KlickEx to facilitate cross-border transactions in the South Pacific region. The cross-border payments system, developed by IBM, included partnerships with banks in the region. This IBM-Stellar partnership was a significant step in showing how serious Stellar was in the enterprise space. In December 2017, Stellar announced a partnership with Nigeria-based remittance platform SureRemit.2018: Stellar signed a deal with TransferTo to facilitate cross-border payments to over 70 countries. It also became the first distributed technology ledger to receive Sharia-compliant certification for payments and asset tokenization, and was selected as a partner by IBM for its dual-backed stablecoin project. In September 2018, Lightyear Corporation acquired Chain, Inc., and the combined company was named Interstellar. 2019: Stellar ended its 1% annual inflation mechanism via a validator vote on October 28, 2019. Then, on November 4, 2019, SDF announced that it was reducing its Lumen holdings by burning (sending to unreachable addresses) a total of 55,442,095,285.7418 Lumens, reducing the total supply to approximately 50 billion. While this move caused a short-term price increase, the rally quickly fizzled out.2020-2024 and beyond: In October 2020, SDF announced USDC support, which entered the market in February 2021. In January 2021, the Ukrainian Ministry of Digital Transformation announced a collaboration and partnership with Stellar to develop Ukraine's digital infrastructure. This was a significant development demonstrating Stellar's role in digital currency projects. In 2021, Franklin Templeton launched the first tokenized US investment fund using Stellar. In June and July 2021, Protocol 17 (the ability for asset issuers to revoke assets for regulatory compliance) and Protocol 18 (Automated Market Makers - AMMs) were implemented, respectively. In March 2022, Starbridge, a bridge protocol between Stellar and Ethereum, was announced. In June 2022, Protocol 19, which introduced off-chain payment channels, was implemented. In October 2022, the Stellar Anchor Platform, which will help financial intermediaries provide services on Stellar, was announced. In 2023, beta testing of the Soroban smart contract platform began, and it was fully deployed in early 2024. This opened the door for developers to create new DeFi and NFT applications. In September 2023, Circle's euro stablecoin, EURC, was launched on Stellar. In October 2024, Stellar announced partnerships with Mastercard and Paxos.Why is Stellar valuable?With so many blockchain projects on the market, what makes Stellar valuable? Stellar's unique features that set it apart and add value to the network are as follows:Fast and low-cost transfersStellar's core promise is fast and low-cost transfers. The network can process cross-border payments extremely quickly (almost instantly, typically under 6 seconds) and at an incredibly low cost. Transaction costs are typically less than 1 cent for 10,000 transactions. The average transaction cost is around $0.0009437. This is a significant advantage, especially in situations where traditional wire transfer methods are slow and expensive. In the cross-border money transfer space, Stellar stands out for its speed and low cost.Focus on financial inclusion in developing countriesIn line with the SDF's mission, Stellar aims to provide access to financial services for those who are excluded from or underserved by banking services. It offers microfinance solutions for developing countries. Through projects like Stellar Aid Assist, it enables aid organizations (such as UNHCR and IRC) to deliver cash assistance directly to those in need in a fast, transparent, and low-cost manner. In this system, recipients do not need a bank account; a mobile phone is sufficient. Aid can be sent to digital wallets as stablecoins (such as digital dollars), which protects against the devaluation of local currencies. Additionally, with over 450,000 cash-to-crypto on-ramps worldwide, people can convert digital assets into cash or vice versa. Partnerships with companies like MoneyGram further enhance this accessibility.Open-source structure and a strong communityStellar is an open-source blockchain protocol, and its codebase is hosted on GitHub. This allows anyone to review, develop, and build upon the network. Through programs like the Stellar Community Fund (SCF), it provides financial support to developers and startups building on the network. Sometimes, it even offers rewards of up to 100,000 XLM.Strong partnershipsA key factor driving Stellar's value is its strong corporate partnerships (IBM, MoneyGram) and collaborations with other organizations. As mentioned earlier, IBM, MoneyGram, Deloitte, TransferTo, Mastercard, Paxos, as well as financial giants like Franklin Templeton choosing Stellar for tokenized funds, institutions like WisdomTree using Stellar for asset tokenization, and aid organizations like UNHCR and IRC relying on Stellar for humanitarian aid distribution, highlight the network's real-world applications.Efficiency and scalabilityThe Stellar Consensus Protocol (SCP) is a consensus mechanism that uses significantly less energy compared to PoW systems like Bitcoin. At this point, validators on the Stellar network play a crucial role in achieving consensus. SCP is structured as a model called Federated Byzantine Agreement (FBA). According to a study, the carbon footprint of the Stellar network is equivalent to the greenhouse gas emissions from the annual electricity consumption of 33.7 US households. The network is scalable. It can process up to 1,000 transactions per ledger and has successfully processed tens of billions of transactions since 2015. The Soroban smart contract platform, in particular, was designed with performance and scalability in mind, with features such as multi-core scaling.Asset tokenizationStellar is presented as an ideal platform for converting (tokenizing) real-world assets (stablecoins, securities, funds, etc.) into digital assets. The network facilitates regulatory compliance by offering issuers built-in features such as KYC requirements, multi-signature checks, and asset validation, cancellation, and freezing. The presence of trusted stablecoins such as USDC and EURC on Stellar enables stable value transfer. Tools such as the Stellar Asset Sandbox allow users to explore the asset issuance process without coding knowledge.DeFi and smart contracts (Soroban)Stellar supports the development of decentralized finance (DeFi) applications with a Rust-based, developer-friendly smart contract platform called Soroban. Designed for scalability and usability, Soroban provides the tools (SDKs, CLI, RPC server, sandbox) for developers to get started quickly. This enables the creation of a variety of DeFi applications on the Stellar network, such as lending, borrowing, and staking protocols, wallet integrations, bridges between different blockchains, and oracle (data feed) services. SCF also provides support for projects building on Soroban.Cross-currency transactions and DEXStellar can facilitate transactions between any currency pair directly or using XLM as a “bridge currency.” The network allows users to send payments in a specific currency, even if they hold different currencies, and automatically converts the amount of currency (forex conversion). There is also a built-in Stellar DEX (Decentralized Exchange) that facilitates peer-to-peer trading between various currencies and tokens issued on the network.Anchor, Ramps, and the “validator” systemAnchors are trusted institutions that connect the Stellar network to traditional banking systems. They provide “on-ramp” and “off-ramp” services, where fiat currencies (like USD, EUR) can be converted into their digital counterparts (stablecoins) on the network and vice versa. Stellar Ramps is a set of open standards that allow applications to connect to this global anchor network with a single integration standard. This system gives users access to cash deposit and withdrawal points worldwide.Finally, validators on the Stellar network play an important role in reaching consensus on the network. When these features come together, it becomes clear that Stellar is not just a technically advanced blockchain, but a collaborative and mission-oriented project that aims to increase access and efficiency in financial services in the real world. The answer to the question of what XLM does is also hidden in these points: XLM is a basic token that enables the functioning of this ecosystem, reduces transaction costs and bridges different assets.Who is the Founder of Stellar?The clear answer to the question of who is the founder of Stellar is Jed McCaleb, one of the well-known names in the cryptocurrency and blockchain world. So, who is Jed McCaleb? He is an entrepreneur who has previously undertaken important projects in the field of internet and technology. McCaleb was the founder of Mt. Gox, which previously became one of the largest Bitcoin exchanges in the world but was later closed down due to a major hack. He is also the co-founder of Ripple, another popular blockchain project operating in the field of cross-border payments. However, McCaleb left Ripple in July 2013 due to reported disagreements. His vision after leaving Ripple was to create Stellar, something he thought PayPal had failed to do. His plan was to create a new network focused on cross-border money transfers, aiming to make the global financial system more accessible and affordable for everyone. He initially called the project the "Secret Bitcoin Project" and sought alpha testers. Jed McCaleb was joined by former attorney Joyce Kim in the founding of Stellar.The main force behind the project and the source of the development team is the Stellar Development Foundation (SDF). The role and governance of the SDF includes advancing the growth, development and mission of the network. As a non-profit organization, the SDF sets the strategic direction of the network in collaboration with ecosystem participants, provides funding to developers building on the network (through the SCF), and works to shape the future of the technology through partnerships and dialogue with public/private stakeholders. The current CEO and Executive Director of the SDF is Denelle Dixon.Frequently Asked Questions (FAQ)There are many questions about the Stellar network and the XLM token, especially for those new to blockchain technology or users interested in cross-border payment solutions. In this section, we will provide short and clear answers to the most frequently asked questions about Stellar.What is Stellar, why was it founded, what does it do?: Stellar is an open-source blockchain network that makes cross-border money transfers fast, low-cost and accessible. It aims to provide financial services to the unbanked.What is XLM coin, how does it work?: XLM (Lumens) is the native token of the Stellar network. It is used to pay transaction fees, facilitate value transfers between accounts, and prevent spam transactions.Who founded Stellar and why did they leave Ripple?: Stellar was founded in 2014 by Ripple co-founders Jed McCaleb and Joyce Kim. McCaleb left Ripple because he thought it was decentralized and wanted to establish a more open and accessible system.What problems does Stellar aim to solve?: Stellar aims to solve slow and expensive cross-border money transfers, the problems of individuals without access to financial services, and the intermediary dependency in traditional systems.Is Stellar secure and scalable?: Yes. Stellar works with the Stellar Consensus Protocol (SCP), which offers energy-efficient and fast transaction confirmations. The network can process thousands of transactions per second and has a low carbon footprint.To continue exploring the Stellar network and the role of the XLM token in financial transformation, check out the JR Kripto Guide series.