What Is Stellar (XLM)?

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What Is Stellar

Stellar is a decentralized network that allows users to send money in any currency, anywhere in the world.

What Is Stellar (XLM)?

Stellar is a distributed ledger technology and open-source protocol for sending and receiving digital tokens. It was created by Jed McCaleb in 2014 as a fork of Ripple, another cryptocurrency project. Unlike other cryptocurrencies, Stellar does not use mining or proof-of-work protocols to validate transactions on its network—instead, it relies on a distributed network of computers called “validators.” These validators run the Stellar Core software, which processes transactions and ensures that they are legitimate.

Unlike many alt coins, Stellar was designed to facilitate cross-asset transfers of value. This means that it can be used to transfer funds from one currency to another—for example, from USD to EUR or even BTC to ETH. Stellar also features a built-in decentralized exchange that allows users to buy and sell assets on its network without trusting any third party.

The native asset of the Stellar network is called Lumens (XLM). XLM is used as an intermediary currency when transferring between different types of assets and can also be used for payments, remittances, and to pay for transaction fees. XLM is also the currency in which validators are rewarded on the network. The total supply of Lumens (XLM) is just over 104 billion and it currently has a market cap of around $7 billion USD.

How Does Stellar Work?

Stellar works by connecting people, payment systems, and banks through its distributed ledger. This allows for the transfer of money to happen at a fraction of the cost and without any delays that are typically associated with international payments.

On Stellar, users can send or receive money from anyone in the world using their unique public address. When a payment is made, the ledger verifies it and updates the balances of both parties.

Additionally, Stellar has built-in decentralized exchanges for users to convert their currencies into different asset types like fiat currency or cryptocurrencies. This allows people from all over the world to trade with one another without needing a third party intermediary.

The Stellar network also supports smart contracts. These are self-executing agreements that allow users to create multi-signature accounts, programmable money and tokenized assets, among other features. This makes it possible for developers and businesses to build innovative applications on top of the Stellar network.

Overall, Stellar is an open-source platform that makes it possible to quickly and securely transfer money and other assets across borders. By lowering the cost of international payments, Stellar is helping create a more inclusive, global financial system.

The History Of Stellar

Stellar was founded in 2014 by Jed McCaleb and Joyce Kim. McCaleb is a well-known entrepreneur who had previously founded the defunct Mt. Gox bitcoin exchange as well as the Ripple protocol. Stellar’s development was funded initially by donations from Stripe Inc., a payments company based in San Francisco, California.

The original intention of Stellar was to enable people to send money across borders quickly and cheaply. The protocol was designed with the goal of being simple, secure, and scalable. It also featured a consensus algorithm that allowed for faster transaction times than Bitcoin’s proof-of-work system.

In 2015, Stellar expanded its services by launching its initial coin offering (ICO). This allowed users to purchase Lumens, the network’s native token. The funds raised from the ICO were used to support development and build out the stellar ecosystem.

In 2016, Stellar partnered with IBM in order to launch a blockchain-based payments system. This allowed financial institutions to quickly move money around the world using Stellar’s technology.

Since then, Stellar has continued to develop and expand its network. It has also partnered with numerous organizations and companies in order to further its mission of building a better financial system for everyone. Today, it is one of the most popular protocols in the cryptocurrency space.

Is Stellar (XLM) A Good Investment?

Stellar (XLM) is a cryptocurrency and blockchain platform that provides the infrastructure for payments, remittances, and exchanges. This makes it an attractive investment option for those interested in investing in cryptocurrencies.

The biggest appeal of Stellar is its low transaction costs, making it an ideal payment solution. Transactions are processed quickly — often within seconds — and at a fraction of the cost of other payment services. Stellar is also backed by an impressive roster of partners, including IBM, Deloitte, Stripe, and many more.

Stellar’s technology has been praised for its scalability and security. The platform runs on the SCP (Stellar Consensus Protocol), a consensus algorithm that is efficient and robust. It also makes use of advanced cryptography methods to ensure user security, making it an attractive investment option for those looking for extra security in their investments.

The highest that XLM has ever reached is $0.68 back in May 2021, and is now sitting below $0.10.

Is Stellar A Good Investment

To stay up to date with the current XLM price data, click here.

Should You Buy Stellar (XLM)?

Whether you should buy Stellar (XLM) depends on your individual goals and risk tolerance. There are a few things to consider before deciding whether or not to invest in cryptocurrency.

First, it’s important to understand the project’s mission. The goal of Stellar is to create an open financial system that allows people to send money quickly and cheaply. It also seeks to facilitate low-cost cross-border payments.

The platform’s technology is based on blockchain, which provides a secure and decentralized network for the transfer of digital assets. This means that the transactions are faster, more reliable, and less expensive than traditional financial systems. Additionally, Stellar is supported by a strong community of developers, meaning that the project continues to improve and add features.

The token XLM can also be used to pay for the platform’s smart contract functionality which allows for automated, program programmable transactions.

How Many Stellar (XLM) Coins Are There in Circulation?

At the time of writing, there are 50,401,199,779 XLM in circulation. This is the total supply of Stellar Lumens available for trading on exchanges and wallets. The maximum amount of XLM that can be created is 100 billion coins. Of this, 95% will be distributed to individuals and institutions through various programs. The remaining 5% will be retained by the Stellar Development Foundation (SDF) to support operations and continue development of the protocol. The SDF also has access to a pooled reserve of up to 2 billion XLM, which is used for specific projects that benefit the network.

The total supply of XLM will remain fixed at 100 billion coins, meaning that there is no inflationary pressure on the cryptocurrency. This means that prices will remain stable and reliable, providing investors with a steady rate of return over time. Additionally, Stellar Lumens does not use proof-of-work (PoW) or proof-of-stake (PoS), so miners are unable to increase the supply of XLM by creating new coins. This makes Stellar Lumens a deflationary asset, which can lead to substantial long-term profits for investors.

Where Can You Buy Stellar (XLM)?

Stellar (XLM) is available for purchase on many different cryptocurrency exchanges, including some of the most popular ones such as Binance, Coinbase Pro, Kraken and Huobi Global.

Before trading Stellar (XLM), it’s important to research all of your options carefully to make sure you’re choosing an exchange that meets your needs. Each exchange offers different fees, order types and deposit limits, so make sure you do your due diligence before committing to an exchange.

In addition to the major exchanges, Stellar (XLM) can also be purchased from decentralized exchanges (DEXs), including StellarPort and StellarTerm. These exchanges enable users to trade XLM directly with other users without the need for a centralized third party. This means that transactions on these exchanges are anonymous, secure and don’t require identity verification.

Conclusion

Stellar (XLM) is a platform for decentralized, distributed payments. It enables faster and more efficient transactions than traditional payment methods, and its low fees make it an attractive option for those looking to send money across borders quickly and securely. With the potential of becoming a global currency in the future, Stellar (XLM) may be a great cryptocurrency to invest in.

That said, it is important to remember that all investments come with risks. Before investing in any cryptocurrency, it is important to do your due diligence and research the project thoroughly before making a commitment. With its low fees, scalability, and compatibility with traditional financial infrastructure, however, Stellar (XLM) could be an attractive choice for those looking to get started in the world of cryptocurrency.

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Gabriel has over 15 years of experience trading various asset classes as a full-time technical analysis trader. He was first introduced to cryptocurrency in 2017 and was immediately hooked. Aside from analyzing charts, Gabriel enjoys going to the gym and lifting weights.