How It Works
Stellar uses the Federated Byzantine Agreement (FBA) model through its Stellar Consensus Protocol (SCP), designed by David Mazières. Each node defines its own "quorum slice" — the subset of nodes it trusts — rather than all nodes trusting the same validator set. Through overlapping trust relationships, the network converges on consensus without a central authority or PoW energy expenditure. Transactions settle in one ledger close (~5 seconds). The Stellar DEX is built into the protocol, allowing atomic cross-asset swaps via "path payments" that automatically find the best conversion route through multiple intermediate assets.
Consensus Mechanism: Stellar Consensus Protocol
Proof of Stake consensus selects block proposers based on the amount of cryptocurrency staked as collateral. Validators risk losing their stake (slashing) if they act dishonestly, creating economic security without energy expenditure. Stake-weighted selection means larger stakers have proportionally greater influence on block production.
Key Architecture Facts
| Category | Layer 1 |
| Consensus | Stellar Consensus Protocol |
| Launched | 2014 |
| Founder | Jed McCaleb |