In the world of finance and technology, especially when it comes to cryptocurrencies and blockchain platforms like Stellar, there’s a unique set of terms that are crucial to understand. These terms not only define the platform’s functions but also help in navigating the complex world of digital currencies. Let’s delve into some of the key Stellar terms, explained in simple English.
1. Lumens (XLM)
Lumens are the native digital currency of the Stellar network. They serve as the smallest unit of the Stellar currency and are used to pay for transactions on the network. Think of Lumens as the “gas” you might put in a car to drive it; they’re the fuel that makes transactions possible.
Example: To send 5.0001 XLM from one account to another on the Stellar network, you need to have at least 5.0001 Lumens in your account.
2. Accounts
An account on the Stellar network is like a bank account. It’s a unique identifier that holds your Lumens and allows you to send and receive transactions. Each account has a public key, which is used to identify it on the network, similar to a bank account number.
Example: Account: [publicKey]
3. Nodes
Nodes are the computers that run the Stellar network. They validate transactions and keep the network secure. There are different types of nodes, including full nodes, which have the full history of the network, and lightweight nodes, which don’t but can still participate in the network.
4. Consensus
Consensus is the process by which nodes agree on the state of the Stellar network. It’s a key aspect of how Stellar ensures that all nodes have the same view of the network’s state.
5. Threshold签名
Threshold签名 is a unique feature of Stellar that allows for more flexible transaction signing. Instead of requiring a single signature, a threshold signature can be set to require a certain percentage of signers to agree on a transaction before it’s valid.
Example: A transaction can be set to require 2 out of 3 signatures to be valid, meaning that at least two of the three signers must agree.
6. Assets
Assets in Stellar are a way to represent any type of value that is not Lumens. They can be stocks, bonds, or even loyalty points from a retail store. Assets can be created and traded on the Stellar network.
Example: A company can create its own asset to represent shares of its stock, allowing investors to trade them on the Stellar network.
7. Paths
Paths are a feature that allows you to send assets that are not directly supported on the Stellar network by routing them through intermediate assets that are supported.
Example: If you want to send Bitcoin (BTC) to someone who only accepts Ethereum (ETH), Stellar can help you find a path to do so.
8. Memo
A memo is a piece of text that can be attached to a transaction. It’s often used to include a note or identifier with the transaction, such as a payment reference number.
Example: You might add a memo to a transaction to indicate that it's for a specific invoice or order number.
Understanding these terms is essential for anyone looking to engage with the Stellar network, whether it’s for personal use, investment, or as part of a business. Each term plays a vital role in the functioning of the network, and as you delve deeper into the world of cryptocurrencies, these terms will become increasingly important.