Simplifying Concepts Of Stellar Network

Knowing about basics always helps in the better understanding of the more complicated processes. It also enriches communication and let the other person know that you know your business well. With this blog, I want to share some basic concepts that will help anybody who wants to understand them in simple language. I will try to keep it as simple as possible, Pinky Promise…

Let’s start with the golden question- What is Stellar?
Stellar is a network of decentralized servers spread all over the world that power a distributed ledger. Each server is running on Stellar-Core software. In simple words, multiple computers connected all over the world installed with software called Stellar-Core which helps in the server to server communication, validation and data synching.

The native cryptocurrency of the stellar network is Lumen(XLM). The smallest unit of the lumen is stroop. 1 XLM is equal to10,000,000 stroops.

Consensus
The process in which these servers communicate with each other and ledgers are created, validated and synced is referred to as consensus and it happens every 2–5 seconds.

Stellar-Core
Stellar-Core is the heart of the network. Stellar-Core validates the transactions and applies changes in the ledger. Stellar-Core is written in C++ language.

Ledger
When we know that we have new data to process, we know that there is a new ledger coming in. Ledgers are created and validated by stellar consensus protocol. A ledger is composed of a set of transactions that happens during the creation of the ledger and previous ledger’s hash. Previous ledger’s hash is used to verify that the transition is the one, it supposed to be. Ledger records every transaction in the system that is synced with every stellar server presents in every part of the world. The ledgers are saved and retrieved from a SQL database.

Transactions
Transactions contain a set of operations and a set of signatures that authorize that transaction. Fee for each transaction is 100 stroops. Transactions either succeeds or fails atomically (no modification will be done unless the complete procedure is done), this avoids conflicts in the network.

Operations
Operations are of different types like the creation of an account, funding of an account, making payment from one account to another, changing the options of account etc. A single operation would produce multiple effects.

Effects
Effects represent a single discrete change to one account. The effect is the finest grain to the change in the network. Examples, a credited effect in payer account and a debited effect in payee account.

Horizon
Horizon is the interface between Stellar-Core and client application. It interacts with the Stellar-Core via RPC calls and serves the data through the APIs. Horizon is written in Go programming language. The restful API gives the output in a JSON object. Like normal API service, it checks if the requirements are met. If you are sane enough to pass all the required parameters, you will have your data. Otherwise, it will shout at you with some error.

For better understanding the process between client, horizon, and Stellar-Core, I am presenting it in the form of a conversation:

Client: Hey horizon, how are you? Can you send the status for GASOCNHNNLYFNMDJYQ3XFMI7BYHIOCFW3GJEOWRPEGK2TDPGTG2E5EDW account, please?

Horizon: Hi there, I am great. Sure, I will do the needful.

Horizon: Hey Stellar-Core, hope you are doing great. Can you please give me the status for this account real quick.

Stellar-Core: Yeah, looking for it. Okay, I found it and here you go.

Horizon: Oh thanks Stellar-Core.

Horizon: Sorry for the delay client. This is what I found.

Client: Thanks horizon. You are always helpful.

I know some of the stuff can still confuse you. If you have doubts, feel free to ask through comments or twitter profile. If you like this story, please appreciate it with claps or comments.

And always remember,
You Are Awesome

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