Crypto 101

Crypto 101: Stellar XLM

Stellar (XLM) is a Layer-1 blockchain with roots in cross-border transactions/remittances and operating as a decentralized peer-to-peer network for payments and asset tokenization. 

Established in 2014 by the Stellar Development Foundation, Stellar has processed over 2 billion transactions from 6.5 million individual accounts.


Stellar officially launched in 2015, founded by Jed McCaleb and Joyce Kim after their departure from Ripple (XRP). McCaleb’s objective was to reduce the friction caused when converting fiat to crypto.

Initially, the Stellar project was intended for people in developing nations. However, the network’s speed and low fees, 0.00001 XLM or Lumens, have aided in its growing popularity amongst crypto users globally.


Stellar has a few unique features which allow users to: 

  1. Send a particular currency to a recipient who then receives the value of the particular currency sent but in a different currency. For example, you send euros to your friend who receives the value of those euros in Bitcoin.
  2. Create tokens redeemable for any asset.
  3. Trade tokens peer-to-peer.

Stellar Consensus Protocol, also known as SCP, is the consensus mechanism securing the Stellar network. SCP is a new kind of consensus mechanism which is a construction of the Federated Byzantine Agreement (FBA), where consensus is achieved through a select number of trusted nodes.

To learn about recent Stellar price trends, go to Abra Trade in the Abra app.

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About Abra

Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.

Why Abra

Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.

How Abra Protects Your Funds

Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.

Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.

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