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But is it safe and legit? XLM is also used to pay transaction fees in order to stop spammers from clogging on the ledger. Every account in the Stellar network most hold a minimum of 1 XLM to ensure authenticity. XLM also acts as a bridge currency within the Stellar Distributed Exchange, leveraging its nature as the only asset in the Stellar network that does not require an anchor, allowing it to pair with any other asset to provide liquidity.
In an FBA system, there are quorums and quorum slices. Quorum is a set of nodes sufficient to reach agreement. Given that an FBA system is open participation, meaning that participants can join and leave as they please, it is impossible for the system to know how many nodes are sufficient for quorum without knowing the identities and amounts of nodes in the system.
Thus, FBA introduces a concept of quorum slices nodes. A quorum slice is a subset of a quorum that can convince one particular node about agreement. In an FBA system nodes broadcast and individually determine which quorums slices to trust, and build their own quorum based on the information they have at hand. In FBA systems it is crucial that these quoroms overlap to ensure the network reaches consensus.
Ripple for example, provides a list of trusted validators to use in order ensure there is overlap when participating in the Ripple Consensus Protocol RCP. Consensus in FBA systems is reached through a multi round process where validators share ledger candidates between each other, adding and subtracting transactions until their candidate proposals match what their validators in their quorom slice proposed.
Once a supermajority is reached, each server independently computes a new ledger hash from the agreed-upon set of transactions and compares results. Once a super majority of validators agree upon the hash of the new ledger candidate, the ledger candidate is considered final. SCP differentiates itself from RCP in that validators can choose their own quorom slices rather than using a pre-defined one from Ripple.
Furthermore, rather than relying on a super majority of nodes for consensus SCP introduces notions of validator quality, where validators are weighted based on trustworthiness and reliability, and validator grouping, where validators are grouped by organization. SCP posit these additions allow for stronger quorums. The FBA is a fairly new consensus mechanism pioneered by Ripple. An FBA allows nodes to choose which peers the trust based on intrinsic or extrinsic factors set by the nodes.
This dynamic creates network-wide quorums as individual nodes relay and verify network activity information. Stellar disinventivizes this by financial rewarding honest actors in the network via fees and other rewards. Stellar also adds an element of reputation and social identity by keeping network actors as known entities, which incentivizes financial institutions to maintain the trust of their peers.
Some of these trusted financial institutions are called Anchors, a crucial part of the Stellar blockchain network. Anchors maintain wallets with fiat and XLM balances to allow currency exchange.
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BTC. Quantity. XLM. 25% 50% 75% %. %. Total. plus fee. BTC. (fee: ₿) Show confirmation. Good til cancelled. Clear after submission. XLM. A federated blockchain for global financial transactions. $ Top Markets. XLM/USD. $ · XLM/BTC. ₿ · XLM/ETH. Ξ Lumen (USD-XLM). $ (≈. ) Bid. Ask. High. Low. Chg. %. Vol. Chart Depth.