Stellar current price is $0.18.

The Stellar network is an open source, distributed, and community owned network used to facilitate cross-asset transfers of value. Stellar aims to help facilitate cross-asset transfer of value at a fraction of a penny while aiming to be an open financial system that gives people of all income levels access to low-cost financial services. Stellar can handle exchanges between fiat-based currencies and between cryptocurrencies. Stellar.org, the organization that supports Stellar, is centralized like XRP and meant to handle cross platform transactions and micro transactions like XRP. However, unlike Ripple, Stellar.org is non-profit and their platform itself is open source and decentralized.Stellar was founded by Jed McCaleb in 2014. Jed McCaleb is also the founder of Mt. Gox and co-founder of Ripple, launched the network system Stellar with former lawyer Joyce Kim. Stellar is also a payment technology that aims to connect financial institutions and drastically reduce the cost and time required for cross-border transfers. In fact, both payment networks used the same protocol initially.Distributed ExchangeThrough the use of its intermediary currency Lumens (XLM), a user can send any currency that they own to anyone else in a different currency.For instance, if Joe wanted to send USD to Mary using her EUR, an offer is submitted to the distributed exchange selling USD for EUR. This submitted offer forms is known as an order book. The network will use the order book to find the best exchange rate for the transaction in-order to minimize the fee paid by a user.This multi-currency transaction is possible because of "Anchors". Anchors are trusted entities that hold people’s deposits and can issue credit. In essence, Anchors serves as the bridge between different currencies and the Stellar network.Lumens (XLM)Lumens are the native asset (digital currency) that exist on the Stellar network that helps to facilitate multi-currency transactions and prevent spams. For multi-currency transactions, XLM is the digital intermediary that allows for such a transaction to occur at a low cost.In-order to prevent DoS attacks (aka spams) that would inevitably occur on the Stellar network, a small fee of 0.00001 XLM is associated with every transaction that occurs on the network. This fee is small enough so it does not significantly affect the cost of transaction, but large enough so it dissuades bad actors from spamming the network.Prior to Protocol 12, Stellar had a built-in inflation mechanism conceived to allow account holders to collectively direct inflation-generated lumens toward projects built on Stellar.As the network evolved and grew, it became increasingly clear that inflation wasn’t working as intended — account holders either didn’t set their inflation destination or joined inflation pools to claim the inflation themselves, and the operational costs associated with inflation payments continued to rise — and so a protocol change to disable inflation was proposed, implemented, voted on by validators, and ultimately adopted as part of a network upgrade.The inflation operation is now deprecated.https://developers.stellar.org/docs/glossary/inflation/

# The Stellar Network: A Comprehensive Overview

The Stellar network is an innovative and open-source platform designed to facilitate cross-asset transfers of value. This decentralized payment system operates with the ambition of creating an inclusive financial network that allows individuals of all income levels to access low-cost financial services. By bridging various currencies, both fiat and cryptocurrencies, Stellar aims to revolutionize how money is sent and received globally.

## Background and Development

Founded in 2014 by Jed McCaleb-who is also known for pioneering Mt. Gox and co-founding Ripple-Stellar was established alongside former lawyer Joyce Kim. Unlike Ripple, which operates for profit and is more centralized, Stellar.org is a non-profit organization dedicated to fostering a transparent and decentralized financial ecosystem. Initially, both Stellar and Ripple shared similar foundational protocols; however, they have since diverged significantly in their goals and operational structures.

## Key Features of Stellar

### Open Financial System

Stellar strives to become an open financial system by providing a platform for cross-asset transfers that cost a fraction of a penny. By eliminating the high costs traditionally associated with cross-border transactions, Stellar empowers users to send money globally without the heavy fees imposed by banks and other financial intermediaries.

### Lumens (XLM)

At the heart of the Stellar network is its native digital currency, Lumens (XLM). Lumens serve several crucial functions:

- **Intermediary Currency:** When transferring different currencies, Lumens act as a bridge, enabling users to convert currencies at minimal cost. For instance, if User A wants to send USD to User B in EUR, XLM would facilitate this currency swap efficiently.

- **Transaction Fee Prevention:** To maintain network integrity and prevent spam, every transaction incurs a small fee of 0.00001 XLM. This nominal fee is meant to deter malicious actors while remaining low enough to not affect the cost-effectiveness of transactions.

### Anchors

Anchors are essential trusted entities within the Stellar network that hold deposits and issue credits. They function like banks or payment processors, facilitating the exchange between fiat currencies and digital assets. Anchors play a vital role in ensuring the seamless operation of the distributed exchange by acting as a bridge between users and the Stellar network.

## Distributed Exchange Mechanism

Stellar incorporates a distributed exchange that allows users to pursue multi-currency transactions. Users can submit offers to exchange their currencies, forming an order book where the network seeks the best possible exchange rates. This mechanism significantly reduces trading fees and enhances transaction efficiency.

For example, if a user wants to convert USD into EUR, they can create a sell order in the distributed exchange for USD in exchange for EUR. Stellar's protocol utilizes the order book to automatically match orders, ensuring that each user receives the most favorable rate possible.

## Protocol Changes: Inflation and Stability

Historically, Stellar had a built-in inflation mechanism intended to allocate inflation-generated Lumens toward community projects. However, this system proved inefficient as many users did not direct their inflation effectively, leading to increased operational costs.

To address these challenges, the network underwent significant changes. Following discussions among validators and users, Stellar's Protocol 12 was implemented, leading to the deprecation of the inflation operation. This shift reflects the network's evolution and commitment to prioritize efficiency and utility over previous mechanisms that did not serve the community's best interests.

## Conclusion

The Stellar network represents a significant leap forward in making financial services accessible and affordable for individuals worldwide. By leveraging its distributed architecture, Lumens, and Anchors, Stellar facilitates low-cost cross-asset transfers while promoting inclusivity in the financial ecosystem. As it continues to develop and innovate, Stellar is poised to impact global financial transactions profoundly, making it a key player in the future of digital finance.

For further details and updates on the Stellar network, you can visit their official website at [Stellar.org](https://stellar.org).