Thread by @Cov_duk

Stellar 101: frictionless, instantaneous cross border currency transfers

Here's your everything guide to #Stellar Network, the network for just about every currency transfer.

A thread🧵👇
$XLM

2. Stellar is an open-source network for currencies and payments.

Using blockchain tech, Stellar makes it possible to create, send and trade digital representations of all forms of money: dollars, bitcoin, etc.

3. Essentially, it’s designed so all the world’s financial systems can work together on a single network.

Stellar’s goal is that is anyone using a service powered by #Stellar can transfer anything from traditional currencies to asset tokens.

4. Transactions take between 3 -5 second and happen through the Stellar Consensus Protocol (SCP).

Essentially, the SCP allows for decentralization, low latency, a degree of trust and security.

5. #Stellar is allows for thousands of exchanges between currencies and tokens per second. It plays an incredibly important role.

6. Transferring crypto to fiat and vice verse is incredibly time consuming and pricey.

#Stellar makes this super easy. $XLM is used to transactions fees on the Stellar network.

7. #Stellar is a uniquely seamless decentralized foreign exchange. It utilizes anchors to hold deposits and issue credits based on requirements.

8. An anchor is essentially the bridge between currencies and #Stellar.

All money transfer on Stellar take place in credit issued by anchors, essentially making them the foundation of Stellar.

9. #Stellar is very interesting. Till now, the transfer and exchange of different currencies has been very cumbersome and long. While crypto has changed that, it is still difficult to trade currencies between chains.

10. #Stellar is a decentralized system that’s great for trading any kind of money in an efficient way. It’s super fast and transparent.

11. #Stellar isn’t trying to replace traditional finance and currencies. Instead, it wants to work adjacent to them.

It’s designed to make tradition forms of money like dollars and pounds, more accessible.

12. #Stellar works in a 1:1 ratio with various currencies. What that means is, if someone deposits 1 USD, it is assigned a dollar token.

Each dollar token is equivalent to 1 dollar.

13. Only when someone deposits a dollar is a dollar token produced. Which means that all dollar tokens are backed by a dollar.

Thus, the dollar tokens are equal to dollars and can be treated as such.

14. This is kinda similar to a credit system. However, #Stellar is global.

Essentially, even though the associated dollar may be restricted to a single nation, the dollar token can move globally.

15. Hence, without the dollar ever moving from the bank, transactions are being made, making it borderless.

Anyone across the global can buy, sell and use dollars, without owning an American bank account. This opens endless possibilities for the world.

16. But #Stellar isn’t just for dollars. Literally any currency, pesos, euros, bitcoin, etc can all be moved this way.

That is Stellar’s brilliance.

17. In addition, #Stellar is fully open. It has a bunch of frameworks and SDKs for people to build on top of it.

This has big implications. Anyone, projects, governments, banks can build on top of stellar.

18. #Stellar is really interesting. It's trying to become the global exchange, for all currencies, digital and real.

Stellar is focused on being traditional finance adjacent, not opposed to it. They have frameworks for banks and other entities to build on top of it.

19. That focus may be what set it apart from other projects and allow it to capture the regulated % of the market.

$XLM worked with the US treasury with their report on stablecoins and spoke to the US Congress. Big. It's also working with companies like IBM. Big

20. Here's a cool thread about all the things $XLM is doing right by @noaty343:

https://twitter.com/noaty343/status/1503589375736692737

21. Accounts to follow for #Stellar insights:
@MasonVersluis @thebu11runner @NicolasFlamelX @noaty343 @XLM_Top @iCryptoNetwork @NCashOfficial @lIllIlllIIIll @Stellar_News_ @StellarUpdate @STELLAR_trading @samconnerone @StellarFamily @Stellar_Family

RT would mean a lot!

22. Accounts to follow for #Stellar insights:
@LumenatorJack @ReachROCKIN @BigBabvshka @pipsielot @MIGmanagement @gootecks @anthony_barker @JayBlessed901 @Call_Me_Cypher @bullringcrypto @UtilityTheory @acoindetective @MichelCrypto1 @SharkAnth0ny

RT would mean a lot!

23. Hope this was insightful, a retweet would mean a lot! I regularly post 101s and breakdowns, follow to stay updated.

Here are some of my past 101s: covduk.notion.site/4798517af2944e…