The History of Stellar (XLM)

Stellar, commonly associated with its cryptocurrency XLM (Lumens), has a rich history rooted in its goal to improve global financial systems and facilitate cross-border payments. It was co-founded by Jed McCaleb, a prominent figure in the cryptocurrency space and one of the minds behind the development of Ripple (XRP). Stellar's official launch took place in 2014, making it one of the earlier blockchain projects tied to a specific mission of improving financial inclusion.

McCaleb’s experiences with Ripple were a partial catalyst in his development of Stellar. He believed in creating a decentralized platform that operates similarly to Ripple but with a stronger focus on individual users rather than banking institutions. As a result, Stellar was designed to connect financial systems, especially those serving the unbanked populations, by providing a fast and affordable payment network.

Initially, the Stellar network started with a partnership with Stripe, an online payment platform, which provided seed funding for its development. After that, it quickly gained significant attention due to its non-profit orientation and its clear focus on inclusivity. The platform differentiates itself with its approach, aiming to serve markets that conventional financial systems often overlook. Stellar operates with a dual system: a decentralized protocol for cross-border transactions and the use of XLM as its native cryptocurrency to facilitate operations within its ecosystem.

Shortly after launching, Stellar went through a network overhaul in 2015. The original code had certain inefficiencies and challenges, leading to a completely new protocol. This upgrade allowed the system to become more robust and operate efficiently with fewer flaws, ensuring better scalability and higher transaction speed. It was around this time that the Stellar Development Foundation (SDF), a non-profit organization, took up the primary mantle in overseeing the project’s development. The SDF remains responsible for guiding the network's future path and maintaining its mission-focused approach.

Over the years, Stellar has attracted numerous partnerships with financial institutions and companies, continuously pushing further into real-world adoption. The foundation continues to work predominantly on the mission of fostering financial inclusivity, but Stellar has also served enterprises and larger organizations needing cross-border solutions. Through this history, Stellar has solidified itself as a project aiming to bridge gaps in the existing financial infrastructure through blockchain technology.