In the era where cryptocurrencies are blooming rapidly, a lot of cryptocurrencies racked up some pretty significant gains and Stellar was one of the perfect example for this. Although Stellar was gaining a lot of popularity, there are still tons of people who are new to the world of cryptocurrencies fail to distinguish the difference between Stellar and Lumens. The Stellar Network is a database which expedite cross-asset transfers of value and a distributed blockchain based ledger with Lumens (XLM) being the native digital asset. To vastly simplify this, the stellar network can be thought as a network for payment and Lumens(XLM) is the cryptocurrency.
Fun fact : A lot of the other coins faced similar problem as Lumens where people refer to the crypto coin as the name of platform or company. For instance, people sometimes call Ether as Ethereum and XRP as Ripple.
What is Stellar??
Stellar is an open source payment technology that possesses a few similarities with Ripple. It was founded by Jed McCaleb which happens to be the co-founder of Ripple as well. The aim of stellar is to connect financial institutions and significantly reduce the time as well as cost for cross-border transfers. Initially, both Ripple and Stellar share the same protocol. However, their similarities end when Stellar created Stellar Consensus Protocol (SCP) which results in foundational differences between the two platforms where Stellar being an open source while Ripple remained a closed system. Furthermore, Ripple and Stellar targeted different users. Ripple possessed close relation and alliance with established bank institutions in order to streamline and smoothen their specialized cross border transfer technology. On the other hand, Stellar is devoted in establishing and developing markets and has several use cases for their technology for instance, bank loan distribution to the unbanked and money remittances。
To gain a more comprehensive understanding on Stellar such as how does Stellar facilitates cross border transfers, here is a PDF of the Stellar Lumens Whitepaper
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