Stellar Lumens’ Introduction of Account Creation and a Valid Key Pair

18 Aug Stellar Lumens’ Introduction of Account Creation and a Valid Key Pair

Stellar, a distributed ledger technology, allows you to build fast and low-cost financial services. Talking about XLM or Stellar Lumens, it is the currency used in the distributed ledger of Stellar. It aids the cross-asset transfer of value and can function as an intermediary currency for transactions covering various currencies in use on the XLM network.

To maintain your accounts, stellar needs’ anchor’ in its network, i.e., creation of your organization. You can trust anchors to hold your funds, issue credits for deposits. Every non-XLM transaction passes through anchors, acts as a bridge between the stellar network and other currencies. To create anchors, you can use transactions’ memo fields (that you will use on behalf of customers) or create Stellar accounts directly on behalf of your customers.

The Stellar accounts created by you will act as the central elements in the data structure of Stellar. They allow you to store, send, and receive payments. The accounts created by you should have a balance in XLM, and it should be sufficient under the network reserve so that it can display in the ledger. It is used to ensure that there are no unused accounts in the network that could hamper the network’s overall performance.

Every stellar account holds three keys inclusive of public, private, and a secret key. To ensure secure transactions for your accounts on the ledger, there is a need for a valid key pair consisting of a public key and a private key. The public key, as the name suggests, is visible to everyone viewing the ledger. It can be used to identify the issuer while authorizing and verifying transactions in the accounts. On the contrary, a private key stays secure with the account holder. A valid key pair for the accounts are created in the SDK or Stellar Wallet.

It is recommended that users always use an SDK instead of direct API calls. It allows the users to mitigate the complexity of the projects running on Stellar networks.