1) Stellar federated addresses make it easier to send you Lumens or Stellar based assets. 


Instead of sending digital assets to a long public key:


GC2BQYBXFOVPRDH35D5HT2AFVCDGXJM5YVTAF5THFSAISYOWAJQKRESK


you could send to a short name like


jed*stellar.org


If you buy lumens or EURT from a TEMPO agent it is much easier to provide them your federated address than to have them use a QR scanner. Not everyone knows how to do that or has the software installed.


How can I get a stellar federated address?


There are several services providing this. Federation is included in Lobstr.co wallet,  Papayabot Wallet, and Stargazer.

https://www.stellar.org/lumens/wallets/


If you are using a platform that does not have it included such as stellarport.io or stellarterm.com you can use https://fed.network/ to create one of your own.


Warning: You need to trust the service that is doing the federation.


If the service providing the federation gets hacked or taken over they could redirect payments going to you.


For more information visit:

https://www.lumenauts.com/explainers/what-are-federated-stellar-addresses

https://www.stellar.org/developers/guides/concepts/federation.html

https://www.reddit.com/r/Stellar/comments/80d51i/create_your_own_pegasuswalletcom_federated/

https://www.reddit.com/r/Stellar/comments/7vwdmt/who_uses_stellar_federation_addresses/