What is Stellar Lumens?
What is Stellar Lumens? On the project’s site, it describes itself as ‘an open network for storing and moving money’. Its main benefit is that users and companies can transfer money across country’s borders without the usual currency exchange costs.
In addition to this, their platform helps companies of all sizes implement financial technology with just a few lines of code. Stellar’s applications include global payment apps, asset exchanges and micropayment services.
Following his departure from Ripple McCaleb developed Stellar with the former lawyer Joyce Kim.
Following this launch, Stellar was quickly propelled towards success and by January 2015, just months after the initial launch, Stellar had over 3 million users.
Stellar Lumens (XLM)
The lumen (XLM) is Stellar’s native token, it has two major purposes.
Lumen’s main use is for sending money across international borders fast and with incredibly low fees (one ten-thousandth of a cent). Stellar transactions are one of the fastest in the crypto world with near instant transaction times.
Secondly Stellar’s built in decentralised exchange is used to convert currencies in to other currencies. For example, if a business in France wants to send Euros to a business in Japan who wants to receive Yen, Stellar will send Euros but automatically convert them in to Yen before they reach the receiving business, this takes on average 5 seconds.
How Does Stellar Work?
Like many other cryptocurrencies, stellar runs on a decentralised blockchain. This blockchain is decentralised by utilising the network of servers that are owned and operated by its users. As Stellar is decentralised, if some of the servers shutdown or fail the network will still function correctly.
In order for users to use Stellar to make cross border transfers, they need to preload their online wallet with lumens very similar to how PayPal works in a traditional sense.
Unlike cryptocurrencies like Bitcoin & Ethereum, Stellar does not use a network of miners to faciliate transactions on its network. Instead of miners, Stellar uses Federated Byzantine Agreement (FBA) algorithm.
Stellar’s transactions are so fast due to their use of nodes, nodes are used to approve transactions. Because nodes are able to approve transactions almost instantly this makes Stellar’s network incredibly fast (1,000 transactions per second).
Real World Applications
Due to its impressive technology and business case, Stellar has managed to develop a number of high value partnerships with traditional business.
Deloitte created a partnership with Stellar in 2016 to build an international payment application known as Deloitte Digital bank. This partnership has resulted in various financial and payment companies in the Philippines, India, France and across Africa.
Much like Deloitte, IBM and KlickEx work with Stellar to provide cross-border transactions in countries across the South Pacific region.
The total circulating supply of Stellar Lumens is 50,001,803,255, with a current coin price of $0.5142 (21st April 2021). The current market capitalisation is $11,780,075,762 and it is ranked 14th on CoinMarketCap.
Stellar Lumens achieved an all-time high price of $0.9381 on January 4th 2018.
Where can you buy Stellar (XLM)?
Stellar has been around for a number of years and has grown in popularity, meaning that it is now available on some of the best exchanges:
If you would like more information on the best cryptocurrency exchanges check out this link.