What is Stellar? Stellar is a platform that connects banks, payments systems, and people. Integrate to move money quickly, reliably, andShow more [+] at almost no cost.
XLM is a completely decentralized consensus platform. It is designed to support any type of currency. It has a built in decentralized exchange that can be used to trade any type of currency or asset.
A decentralized network consists of peers that can run independently of each other.
This means that the Stellar network does not depend on any single entity. The idea is to have as many independent servers participate in the Stellar network as possible, so that the network will still run successfully even if some servers fail.
Like a traditional ledger, the Stellar ledger records a list of all the balances and transactions belonging to every single account on the network. A complete copy of the global Stellar ledger is hosted on each server that runs the Stellar software. Any entity can run a Stellar server.
These servers form a decentralized Stellar network, allowing the ledger to be distributed as widely as possible. The servers sync and validate the ledger by a mechanism known as consensus.
This entire process of coming to consensus on the Stellar network occurs approximately every 2-5 seconds.
I have a few questions about the assets on the network.
First, I know someone/something sets up an asset, backed by something (or not, but it doesn't really matter, right?). The users set up trustlines, meaning that they trust the issuer to actually change the asset by another asset outside of the network. This is needed to received and trade the asset.
My questions are:
Is everything I said right?
Can you make assets backed by nothing? I mean, maybe a guy sets up an asset for fun to trade to his family or friends, can he do it? And should he?
Can an user remove his/her trustline in case the issuer stops changing the asset from/to the network or attempts to issue tokens that are no longer backed by anything?
Do you pay fees for trading assets? I know you need to have 1 XLM in an account for it to be active, and 0.5 XLM for each trustline you have, right?