Stellar Lumens presents itself as an open source infrastructure for distributed payments, built on the idea that the international community needs a "worldwide financial network accessible to all." What the team behind Stellar wants to do is make monetary transactions cheaper and faster, but compatible with existing systems. In addition, their protocol would connect people around the world by making cross border payments more efficient.
Stellar originated as a fork of the 2014 Ripple. Therefore, Stellar is actually based on the Ripple protocol. The fork that became Stellar actually arose from key changes to the consensus protocol. The founders of the Stellar Development Foundation are Jed McCaleb and Joyce Kim.
Like most other cryptocurrencies, the Stellar network is decentralized and runs on a range of international servers. To start using Stellar, you must first set a certain amount of funds to an "anchor" online. Anchor is essentially the name for a company in the Stellar Network that swaps the local currency for Stellar Lumen (XLM). As a bank, this "anchor" then holds the money, and then transfers the identical value of the XLM token to the next anchor. This anchor is a currency exchange that allows you to convert your funds into Stellar's official currency.
There are literally hundreds, soon and thousands of Ethereum tokens (called ERC20 tokens) that are being issued and in order to increase their value they need to be added to one of the world's cryptocurrency exchanges. However, exchanges do not have the capacity to place all these numerous tokens, sometimes it takes a long time for these tokens to be added to these exchanges or to charge a large amount for the process. Tokens issued on the Stellar platform need not be added to the external stock exchange, but can be traded on the aforementioned Stellar decentralized exchange. Token issuers are also provided with the necessary tools to be subject to international KYC and AML provisions. Of course, a token created on the Stellar network can also be added to one of the external exchanges.
Stellar is significantly cheaper and faster than other protocols, including Ethereum. Transactions on the Stellar network take an average of 5 seconds, with a commission of 0.0001 XLM (about 0.00076 cents).
Stellar is also an ICO (Initial Coin Offering) platform. Currently, the most popular ICO launch platform is Ethereum. But the Stellar platform has many advantages that make it a more suitable structure for launching an ICO project.
Launching tokens on the Stellar network is very easy. Ordinary tokens can be created within a few hours, while more complex ones take a few days. Because it has a developer API, it's easy to program a new token without having to know specific programming languages like Solidity, such as in Ethereum. ICO financing is most advantageous with the use of XLM tokens, but it can still take place using ETH or BTC.
If Ripple was designed as a platform for financial institutions and banks, then Stellar Lumens was designed for the "common man". It is a platform that can make international payments with virtually no fees, deduct losses on numerous exchange rate differences, and enable payments to be made in real time, without delays (2-5 seconds).