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Stellar Glossary for New Contributors

Welcome! This glossary explains the key Stellar concepts you'll encounter while working on this project. Don't worry if you're new to blockchain or Stellar—we've kept things simple and practical.

Core Concepts

Stellar Network

The Stellar network is a decentralized payment platform designed for fast, low-cost cross-border transactions. Think of it as a global payment highway that connects different currencies and financial systems.

Key features:

  • Fast transactions (typically 3-5 seconds)
  • Low transaction costs (fractions of a cent)
  • Built for moving money across borders
  • Open-source and decentralized

XLM (Lumens)

XLM, also called Lumens, is the native cryptocurrency of the Stellar network. It serves two main purposes:

  1. Transaction fees: Every transaction on Stellar requires a tiny amount of XLM (usually 0.00001 XLM)
  2. Anti-spam protection: The small fee prevents malicious actors from flooding the network
  3. Bridge currency: XLM can act as an intermediary when converting between different currencies

Fun fact: 1 XLM can be divided into 10 million smaller units called "stroops" (1 stroop = 0.0000001 XLM).

In this project: When users make donations, they're sending XLM from their wallet to a recipient's wallet.

Account

A Stellar account is identified by a public key (a long string starting with 'G'). Every account needs a minimum balance of 1 XLM to remain active on the network.

Example account address:

GCDNJUBQSX7AJWLJACMJ7I4BC3Z47BQUTMHEICZLE6MU4KQBRYG5JY6B

Wallet

A wallet is software that manages your Stellar accounts and private keys. It allows you to:

  • Send and receive XLM
  • View your balance
  • Sign transactions

In this project: Users connect their wallets to make donations.

Transaction Components

Memo

A memo is an optional message attached to a Stellar transaction. It's like adding a note to a payment.

Common uses:

  • Exchange deposits: When sending to an exchange, the memo identifies your account (e.g., "User ID: 12345")
  • Payment references: Adding invoice numbers or donation messages
  • Recipient identification: Helping shared addresses route payments correctly

Types of memos:

  • MEMO_TEXT: Plain text (up to 28 characters)
  • MEMO_ID: A number (useful for user IDs)
  • MEMO_HASH: A 32-byte hash
  • MEMO_RETURN: Used for refunds

Important: Always include the memo when required by exchanges or services, or your funds might not be credited properly!

In this project: Memos can be used to attach messages to donations or identify the purpose of a payment.

Transaction

A transaction is a bundle of operations submitted to the Stellar network. Each transaction:

  • Has a source account
  • Contains one or more operations (like payments)
  • Requires a small XLM fee
  • Can include a memo
  • Must be signed with the account's private key

Example transaction flow:

  1. Create transaction with payment operation
  2. Add memo (optional)
  3. Sign with private key
  4. Submit to network
  5. Network validates and processes (3-5 seconds)

API and Tools

Horizon API

Horizon is the HTTP API server that lets applications interact with the Stellar network. Instead of dealing with low-level blockchain data, Horizon provides a friendly REST API.

What Horizon does:

  • Provides account information (balances, transaction history)
  • Submits transactions to the network
  • Streams real-time updates
  • Queries ledger data
  • Makes blockchain data easy to consume

Think of it as: A translator between your application and the Stellar blockchain.

Horizon endpoints you'll use:

  • /accounts/{account_id} - Get account details
  • /transactions - Submit or query transactions
  • /payments - View payment history
  • /operations - See all operations

In this project: Our API uses Horizon to interact with Stellar, check balances, and submit donation transactions.

Official Horizon instances:

  • Testnet: https://horizon-testnet.stellar.org
  • Mainnet: https://horizon.stellar.org

Stellar SDK

The Stellar SDK is a library (available in JavaScript, Python, Go, etc.) that simplifies working with Stellar. It handles:

  • Building transactions
  • Signing with keypairs
  • Communicating with Horizon
  • Parsing responses

In this project: We use the JavaScript SDK (@stellar/stellar-sdk) to build and submit transactions.

Network Types

Testnet

A test version of Stellar where you can experiment without using real money. Perfect for development!

Features:

  • Free test XLM from friendbot
  • Same functionality as mainnet
  • Safe for testing and learning

In this project: We develop and test using Stellar's testnet before going live.

Mainnet

The live Stellar network where real transactions happen with real XLM.

Common Terms

Keypair

A pair of cryptographic keys:

  • Public key: Your account address (safe to share)
  • Secret key: Used to sign transactions (keep this secret!)

Operation

A single action within a transaction, such as:

  • Payment
  • Create account
  • Change trust
  • Manage data

Ledger

A snapshot of the entire Stellar network state at a specific point in time. New ledgers are created every 3-5 seconds.

Stroop

The smallest unit of XLM (0.0000001 XLM). Named after Stroopy, the Stellar mascot!

Quick Reference

Term Simple Explanation
XLM Stellar's cryptocurrency (like Bitcoin for Stellar)
Memo A note attached to a payment
Horizon The API for talking to Stellar
Account Your address on Stellar (starts with 'G')
Testnet Practice version of Stellar (free to use)
Mainnet Real Stellar network (real money)
Keypair Your public address + secret key
Stroop Tiny fraction of XLM (0.0000001)

Learning Resources

Want to dive deeper? Check out:

Need Help?

If you encounter unfamiliar terms while contributing:

  1. Check this glossary first
  2. Search the Stellar documentation
  3. Ask in our project discussions
  4. Visit the Stellar Stack Exchange

Content was rephrased for compliance with licensing restrictions. Sources: Stellar Developer Documentation, Stellar API Reference