Stellar is a decentralized payments network established in 2014, designed to facilitate fast, secure, and cost-effective cross-border transactions. It connects individuals, banks, and payment systems, supporting the transfer of various currencies at minimal costs. The Stellar Development Foundation maintains the network, which operates on a unique consensus mechanism called the Stellar Consensus Protocol (SCP) that enhances energy efficiency by relying on validator reputation rather than computational power. Stellar's native token, Lumen (XLM), is essential for network operations, requiring minimal balances and transaction fees. Key use cases for Stellar include cross-border payments, asset tokenization, and decentralized finance (DeFi) applications, making it especially relevant for unbanked populations. Moreover, Stellar's architecture is attracting interest from financial institutions and regulators for central bank digital currencies (CBDCs) and tokenized assets. While Stellar is well-positioned for mass adoption, it faces challenges from competition and regulatory scrutiny. Overall, Stellar combines affordability, speed, and inclusivity to aim for a transformative role in international finance.

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