Digital Asset Research has published a 51 page, in-depth analysis on Stellar. Stellar is a high-profile project from Jed McCaleb, founder of Ripple & Mt. Gox. It is a payments rail designed for remittances, micropayments, and low cost financial services. The protocol employs a novel consensus mechanism called the Stellar Consensus Protocol (SCP), which provides low latency for transactions regardless of the amount being transacted. SCP also allows trust ratings to be assigned to the nodes that validate transactions, thereby making validation power proportionate to a quantitative metric representing trust. Some of our takeaways:
- Stellar has programmable payment features and a platform to trade real world or cryptocurrency assets, which depends on “anchors”, who issue credit on the network.
- Users can trade bitcoin, fiat, or any other asset through this credit system. Our data shows that 585 unique credits have traded at least once on the network.
- Anchors improve the flexibility and ability of the Stellar network to support almost any asset. However, they pose counterparty, leverage, and centralization risks that are not present in most other networks.
- Stellar features an extensive and well documented RESTful API called Horizon, which can be used by developers for interactions between external applications and the Stellar Core client. All our interactions with Horizon were positive.
- XLM supports numerous programming languages, which is important for community development.
To find out how to get access to our report, please fill out a request for information form here.