Stellar is a payment network based on blockchain technology and a novel consensus model called Federated Byzantine Agreement (FBA).
Stellar Consensus Protocol (SCP) is an implementation of FBA.
The Fast, Low-Cost Network Built for Financial Inclusion
Key issues identified in the Stellar whitepaper are the cost and complexity of current financial infrastructure.
This limitation warrants the need for a global financial network that addresses these issues without compromising the integrity and security of the financial transaction.
This requirement has resulted in the invention of SCP which is a provably safe consensus mechanism.
Original research paper for SCP is
Lumens are consumed when a transaction is broadcasted on the network, which also serves as a deterrent against denial of service attacks.
At its core, the Stellar network maintains a distributed ledger that records every transaction and is replicated on each Stellar server (node).
Why This Matters for Blockchain Technology
The consensus is achieved by verifying transactions between servers and updating the ledger with updates.
The Stellar ledger can also act as a distributed exchange order book by allowing users to store their offers to buy or sell currencies.
There are various tools, SDKs, and software that make up the Stellar network.
The core software is
Key Points to Remember
- Stellar Stellar is a payment network based on blockchain technology and a novel consensus model called Federated Byzantine Agreement (FBA).
- Stellar Consensus Protocol (SCP) is an implementation of FBA.
- Key issues identified in the Stellar whitepaper are the cost and complexity of current financial infrastructure.
- This limitation warrants the need for a global financial network that addresses these issues without compromising the integrity and security of the financial transaction.
Conclusion
Stellar represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.