The Stellar network prioritizes security through its unique consensus mechanism, the Stellar Consensus Protocol (SCP). Unlike proof-of-work (PoW) systems like Bitcoin, SCP does not rely on energy-intensive mining. Instead, it uses a decentralized network of trusted nodes to validate transactions efficiently and securely.

Each transaction on Stellar is encrypted and recorded on a transparent ledger, making it resistant to fraud and hacking attempts. Additionally, XLM users can implement extra security measures, such as two-factor authentication (copyright) and cold storage, to protect their assets.

The Stellar Development Foundation (SDF) also actively monitors the network for vulnerabilities and deploys updates to enhance security. By keeping track of the XLM price and ongoing developments, users can assess the network's reliability and security improvements.