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Dua minggu lalu saya dikontak oleh salah satu rekan saya di Telegram Stellar Community, Brad Mitchell, seorang Computer Science Student di New Jersey, untuk membuat sebuah syllabus tentang Stellar.
I’m really impressed with the idea of making a proper syllabus, karena ini dapat menjadi panduan awal untuk para investor pemula XLM (native coin di Stellar Network)
According to my personal observation di beberapa grup Telegram CryptoCurrency, masih terlalu banyak investor pemula melakukan investment tanpa pemahaman yang cukup akan Coin yang mereka beli.
So i decide to take part on the syllabus author team, dan saya ditugasi untuk menulis di bagian Team & Partner Stellar.
Saya meminta izin kepada Brad untuk repost disini, beberapa hal krusial tentang Stellar yang baiknya dipahami oleh investor pemula.
Mohon maaf post ini dalam dalam bahasa Inggris karena saya belum menemukan proper translation system untuk menerjemahkan nya ke bahasa Indonesia.
With that being said, let’s start.
Section 1 : How Stellar Works
Now that you understand the problem Stellar wants to solve, We’re ready to dive into the technology behind Stellar.
That’s right. Before reading anymore of this syllabus, there are two parts of Stellar you must read start-to-end. No, it’s definitely not Reddit or news headlines, it’s the official How the Stellar Network Operates and Stellar Basics Explained.
It’s easy to want to jump to the gossip of news articles and subreddits, but take the 10 minutes (I know! Easy right?) to get introduced to Stellar. They did a great job with their documentation, so take advantage of it.
Great! Now that you read the introductory documentation, we can move forward (and a bit more quickly).
Similar to Bitcoin, Stellar is a decentralized network. Instead of information being gathered at one centralized source (like a bank), it is distributed among interconnected nodes (servers) in the Stellar Network.
Anyone can set up a verification node (server) with Stellar Core, the backbone of the Stellar Network that does the actual verification using the Stellar Consensus Protocol(SCP). Think of SCP as Stellar’s algorithm to verify transactions. It’s very different from Bitcoin, which uses proof of work (page 3) to verify transactions.
In Bitcoin, miners work together to verify transactions. In Stellar, the trusted nodes, known as verification nodes (servers) that run Stellar Core, will be verifying the transactions. Think of Stellar Core as the software used to make verification possible.
Thus, the Stellar Network is just a series of Stellar Cores, working together to verify transactions, and make sure everything is up to date. Once a transaction is verified, it will be added to the public ledger.
To help against malicious attacks on the Stellar Network, transactions involve a small fee. The Base Fee is 100 stroops per operation (0.0000100 XLM). Stroops are easier to talk about than such tiny fractions of a lumen.
That is extremely cheap, compared to Visa which takes 1.51% plus 10 cents (USD) per transaction.
As said earlier, Stellar can be used by banks or micro-financial institutions (MFIs). Nigeria, the largest country in Africa, has a community that is financially underserved.
Instafin, a banking platform used by many MFIs, will soon have implemented Stellar into their own system.
Thus, people in Nigeria can send payments through an MFI, to another MFI in a distant village. The transactions will go into the Stellar network, and cost a lot less. The transaction won’t have to go through a lot of different central authorities, and instead will be sent directly, at the cost of the base fee (0.0000100 XLM).
The greatest feature about the Stellar Network is that you can send and receive different kind of currencies, such as Fiat (USD, TRY, JPY, EUR, GBP, KPW), Digital currencies like Bitcoin, or even your own kind of asset, like airline miles or hotel points. This is not possibly with Bitcoin and many other cryptocurrencies.
These multi-currency transactions are made possible by a built-in market mechanism in which people can make offers to buy and sell different types of currencies.
This system is called Distributed Exchange. Stellar will automatically find the best prices to exchange currencies for the user. The Stellar Lumen section of this syllabus will provide you with more resources on this.
Stellar’s Technical White Paper
The best place to start with any cryptocurrency is the White Paper, a document that explains exactly what the protocol is and how it works.
The problem with Stellar’s white paper is that it is very technical. You may have understood the basics of the Stellar Network, but the white paper explains the Stellar Protocol in-depth. Essentially, it tells us in a technical way how all the Stellar Cores achieve consensus to verify transactions.
After 3 years of studying Computer Science at university, I was still having trouble understanding it completely. So we provided easier-to-understand resources in this section, such as the cute “Adventures in Galactic Consensus” comic they put together.
Section 2 : Stellar Team
To value a cryptocurrency, you cannot rely solely on its white paper. Like early startups, based companies face similar challenges as early startups, and you must look at the market, team, technology, working products. With any new space, it’s a risky journey and you can expect to get either 100x your investment back, or lose everything.
Daniel Jeffries, a medium author who writes about crypto, wrote a very compelling essay explaining why it is important to think like a Micro VC when investing in cryptocurrency … you can read it here.
As with early-stage startup investments, in crypto-based companies there are 5 things that matter: people, people, people, a good product, and a good market. And it turns out Stellar has one of the best teams in the cryptocurrency space, who have experiences creating great products and knowing how to enter new markets
If you followed the startup scene recently, you’ll recognize some of the Stellar team members. If you are not familiar with the startup ecosystem, let me introduce to you the key members of our team!
Jed is the creator and cofounder of the Stellar Development Foundation.
He is the only man alive with 3 big projects his belt in this Decentralized Economy.
He created and co-founded :
- eDonkey2000 — At the time, it was one of the biggest peer-to-peer file sharing networks with 4 million active users.
- MtGox — Formerly the biggest Bitcoin exchange in the world, MtGox was handling more than 70% of the Bitcoin Transaction worldwide until it was hacked in 2014. However, Jed already sold the company back in 2011 to a French Programmer named Mark Karpeles, who rewrote all the code that Jed had built. So, all the hacking and chaos happened post-Jed.
- Ripple — A top Crypto Currency in the world with over $100B market cap. Jed parted ways with the Ripple team in 2014, because he did not share the same vision with the management team. He wanted to focus more on decentralization and helping financially underserved people, while Ripple management vision has shifted into more centralized system and big bank-oriented development.
With Stellar, Jed tried to realize his vision of a world with an open-inclusive financial system that can be used by everyone including the financially underserved.
David is the Chief Scientist of Stellar.
He’s a professor at Stanford specializing in Computer Security Systems, while boasting a Bachelor Degree in Computer Science from Harvard, and a PhD from MIT.
Adding to an already impressive resumé, David also leads the Secure Computer Programming Lab at Stanford, where he created a startup called Intrinsic that is backed by Andreesen Horowitz (investor of Facebook, Twitter, AirBnB, CoinBase, Pinterest, Skype, Slack, etc.), First Round Capital (investor of Uber, 9gag, Warby Parker, with 100 exit companies under their belt), and Stanford Endowment.
As stated in Stellar’s Official Website, Patrick is one of the three Stellar Development Foundation members — the other two are Jed McCaleb & David Mazières — who hold the highest position in Stellar Foundation, where they serve for a lifetime and responsible for electing Board of Directors.
Patrick, alongside his brother John, successfully built one of the most successful and beloved financial technology startup in the Valley called Stripe. Stripe, currently valued at $9 billion, allows private individual and small medium business to accept payment over the internet. It operates in 25 countries, processing 20 billion dollars with of transactions annually.
Patrick himself, is a self-made billionaire, ranking #7 in Forbes Billionaires under 40 List.
As one of the most respected people in Silicon Valley, Keith is a Stellar board member and mentor to many young up and coming Startup Founders.
Keith is the original member of PayPal Mafia Group, with the likes of Peter Thiel, Elon Musk, Reid Hoffman, and Max Levchin, until the c`ompany got acquired by eBay for $1.5 billion.
Then, he continued his journey in Financial Technology Startups, by becoming COO at Square, cofounded by Jack Dorsey, until the company went public in 2015.
Keith also became a board member of Yelp, VP of Business Development at Linkedin, Investment Partner at Khosla Ventures, and Angel Investor in various company, such as: YouTube, Palantir, Lyft, AirBnB, Eventbrite, and Quora.
Greg serves as board member of Stellar. He studied Math at Harvard and Computer Science at MIT. He is also the former CTO of Stripe, where he spent 2010–2015 helping build the company from 4 to over 250 employees.
He also cofounded OpenAI, an initiatives to conduct deep study related to Artificial Intelligence, with Elon Musk and Sam Altman.
Greg Stein — Director at the Apache Software Foundation, member of Python Software Foundation, and one of the instrumental figure in launching Google Open-Source Hosting Platform.
Matt Mullenweg — Founder of WordPress.com. Largest self-hosted web-tool in the world with 60% of all website in the world using them in the back-end.
Naval Ravikant — Founder of AngelList. Largest Angel Investment Network in the world.
Ronaldo Lemos — Received an LL. M. from Harvard Law School, Ronaldo is a board member to the Mozilla Foundation and Access Now.
Sam Altman — President of Y Combinator, the most successful accelerator program in the world with a $100Billion Combined Valuation in their portfolio, that include companies like AirBnb, Dropbox, Reddit, Instacart, & CoinBase.
Section 3 : Stellar Partner
Along with the hundreds of smaller developers working on building applications on top of the Stellar Platform, Stellar has a series of strategic partnerships.
Founded in 1911, IBM is a public-listed American multinational technology company headquartered in Armonk, New York, United States, with operations in over 170 countries. Now valued at $151Billion in Market Cap, IBM chose Stellar to be their strategic partner in developing blockchain technology for their internal payment processor and also for their big-bank client. IBM also has been added to the validator list of Stellar Network.
Nano Payments for Web Content. They picked Stellar Lumens as the underlying cryptocurrency ledger for their nano payment system as a solution for Bitcoin scalability and delayed transactions issues.
Fintech Startup that is currently valued at $9 billion. Stripe is enabling online merchants, be it individual or small medium business to process credit payments instantly. They are an early backer of Stellar, making a strategic investment worth $3 million to help Stellar launch.
A Polynesian payments system for low value electronic foreign exchange transactions using an interbank smart market retail system. It provides low cost electronic foreign exchange clearing services to clients in the Pacific Islands avoiding the usual foreign transfer fees and spreads by matching up individuals sending payments to and from the islands. KlickEx is the part of IBM-Stellar Partnership, and they will try to leverage Stellar Network to provide an even better services for their client.
Tempo Money Transfer
Founded in 2008 and based in France, Tempo is next generation Blockchain P2P Money Transfer and FX company focused on the non-english speaking world. They help migrant workers send money to their hometown more easily, and a lot cheaper compared to the existing remittance services. Tempo also has been selected to join Tokyo Government Blockchain Accelerator, aiming to enable fully functioning blockchain application in Japan Financial System. Like KlickEx, Tempo is looking to partner with Stellar in order to leverage Stellar prominent Network, that can settle any transaction worldwide within 5 seconds or less.
End of Summary
Sekian sumary dari Syllabus yang kami susun bersama dengan lebih dari 5 co author lain dari seluruh dunia.
Jika tertarik untuk membaca full version dari syllabus ini, anda dapat mengakses nya disini.
Semoga bermanfaat untuk yang sudah dan akan invest di XLM 🙂
See you guys next week!