What are Stellar Lumens?
Stellars aims to rethink the market for currency and asset transfer by building a decentralized network that has been described as everything from a payment railway to an exchange. While people’s answers to the question “What is Stellar?” may differ, this isn’t attributable to the technology. Stellar enables users today to send money and assets in ways that have traditionally been available only to payment providers. The distinction is that Stellar encourages computers on its distributed network to run the same software, allowing these services to be offered.
The idea is that anyone using a service powered by Stellar can transfer everything from traditional currencies to tokens representing new and existing assets. These assets can then be traded between users (across borders) with less friction using its cryptocurrency, lumens (XLM). In this way, Stellar shares similarities with the XRP Ledger (and its cryptocurrency, XRP), which is also meant to provide a protocol for payment providers and financial institutions.
Stellar is marketed as a decentralized exchange, as its ledger has an order book that records the ownership of Stellar assets. Developers are aiming to make Stellar a protocol for managing assets with features like buy and sell orders, asset settlement, and more. That is why Stellar Lumens price prediction is so bright!
What are the origins of XLM?
The Stellar Development Foundation created Stellar in 2014. At first, it wasn’t about the cryptocurrency itself. Some of the famous founders include Jed McCaleb, who is also known as co-founder of Ripple. He previously launched a bitcoin exchange called Mt. Gox; however, it no longer functions today. The creators had a greater goal in mind than just one particular cryptocurrency–they wanted to offer integrity for financial transactions.
Stellar was created with the intention of being a decentralized payment system that would enable its customers to make cross-border payments in any currency, anywhere around the world. Unlike Ripple, Stellar Lumens focuses on people rather than banks. In other words, whenever people, institutions, and payment systems are present within the ecosystem, it links them together.
In 2018, Blockchain.com launched the first airdrop for both itself and Stellar. They planned to distribute $125 million in XLM over a half-year period. Each new Blockchain wallet was given $25 worth of Lumens. The remainder of the Stellar Lumens should have been distributed to existing clients. This airdrop began on November 11, 2018. Did it impact the price of Stellar? Of course, after the announcement, the price increased by ten percent, and it continued to rise for at least one day afterward. Blockchain.com boasted that this was the largest airdrop ever undertaken.
It wasn’t the only giveaway. In 2019, Stellar Lumens announced another airdrop. The firm planned to distribute more than $120 million worth of Stellar Lumens in the coming year. They also collaborated with Keybase, a file-sharing software, to manage things smoothly. For 20 months, The post claims that Keybase was unsuccessful in verifying and banning all accounts created with fraudulent intent.
Although XLM isn’t as well-known as Bitcoin, it has several partners that enable Lumen transactions. In March 2019, Western Union began experimenting with Thunes, a blockchain platform that enables worldwide payments. Thunes’ technology is based on XLM, so Western Union will utilize XLM for international money transfers.
In April 2019, Lumens became one of the most popular cryptocurrencies listed on Coinsquare.com, a well-known Canadian trading platform. The CEO of Coinsquare confessed that XLM was mentioned because the cryptocurrency was requested frequently by its users.
How does Stellar work?
Stellar’s most noteworthy update occurred in 2015 when it replaced the system it used to keep computers running its software with a custom-built alternative. The new Stellar Consensus Protocol is based on a concept called federated Byzantine agreement, which enables nodes to vote on transactions until quorums are reached. Federated Byzantine Agreement is a type of consensus method that was created before the one designed for Bitcoin (BTC).
The software used to power the Stellar network is called Stellar Core, and it can be run in different ways depending on a user’s needs. Specifically, nodes can be set up to serve as Watchers, Archivers, Basic Validators or Full Validators.
The role of Watchers is limited to submitting transactions – they cannot vote on which ones are valid. In contrast, Full Validators take part in the Stellar Consensus Protocol and help other nodes by voting on which transactions should be considered valid; furthermore, they maintain an archive of this history.
Stellar Anchors are an important network function, as they allow Stellar users to store and exchange assets. They take deposits in different cryptocurrencies and assets, and create new Stellar representations of those things. The anchors then establish the criteria that must be satisfied by Stellar users in order to possess the assets. They have the ability to withdraw user access to their funds.
What Makes Stellar Unique?
Many people are concerned about fees. However, high transaction costs on the Bitcoin and Ethereum blockchains aren’t limited to fiat-based payment methods such as PayPal. Transaction fees have also been known to rise dramatically on the Bitcoin and Ethereum blockchains due to congestion.
A key quality that sets Stellar apart is that every transaction only costs 0.00001 XLM. In current market conditions, one unit of this cryptocurrency only costs a few cents. From a perspective of user friendliness and practicality,this ensures users get to keep more of their money. Amongst all the blockchain projects, few have achieved partnerships with renowned technology companies and fintech firms. For instance, a couple of years ago, Stellar partnered up with IBM to create World Wire- a project that allowed major financial institutions to settle transactions using the Stellar network and other digital assets such as stablecoins.
Although other blockchains provide community funds that grants can be given to help the ecosystem,Stellar allows its users to vote on which ventures should receive this support.
Where to get XLM?
Buy Stellar Lumens through eToro
eToro is a social investment and brokerage company that offers access to multiple assets and has over 10 offices worldwide, including locations in the US, UK, Israeli, Cypriot & Australian. eToros’ platform allows for both manual and social investing It’s available online at www.etoro.com as well as through the eToro mobile app.
e Toro’s cutting-edge investment platform allows users to invest in equities, currencies, commodities, crypto-assets, ETFs, and indices. Clients use professional tools and analyses to track and invest in a variety of financial instruments.
Buy Stellar Lumens through ChangeHero.
The main purpose of ChangeHero is to give users a window into the order books of other exchanges, like Binance and Huobi. In my opinion, it functions more like a broker than a regular crypto exchange platform. To use the platform, you need to input certain data depending on what you want to do – buy crypto for fiat, trade crypto for fiat or sell crypto for fiat. Once you’ve supplied the relevant information, just press “Exchange” and the platform will show you the current top bids available.
Buy Stellar Lumens through Coinbase
Coinbase is a cryptocurrency exchange that lets you buy digital coins through their brokerage service or trading platform (Coinbase Pro). For new customers, the brokerage service is quicker and more convenient, but it has greater fees. To save money on expenses, people with more expertise should use the trading platform. Coinbase allows debit cards, wire transfers, and domestic bank deposits from users in 103 countries around the world and provides services worldwide.
What is the price of XLM?
The price of Stellar is constantly changing, but it usually oscillates between $0.104 and $0.106 USD. In 24 hours, its trading volume is usually around $111 million dollars. However, when the network was created in 2015, 100 billion XLM were distributed–but that number has changed over time. The total supply presently sits at 50 billion units.
In 2019, the Stellar Development Foundation has said that it would be burning about 30 billion XLM, which is around half of the cryptocurrency’s total supply. This money is being utilized for marketing and organizational development, although one-third of it is set aside for investing in other blockchain startups.
The foundation said that they decided to destroy these tokens to increase the efficiency of SDF and reduce its costs. They also promised not to burn any more XLM in the future because, as explained,” Those 55.5 billion lumens weren’t going to increase the adoption of Stellar.”
On the whole, Stellar has established itself as a strong blockchain platform with a variety of applications. Their collaboration with IBM and World Wire has been particularly fruitful, and they continue to expand their network and recruit new investors. The XLM token is presently trading at about $0.105, with a total supply of around 50 billion pieces.