Stellar (XLM)The exchange rate of one XLM at 14:37 UTC is 0.106$
Stellar is a blockchain platform that allows to easily transfer assets from anywhere in the world. This cryptocurrency was created specifically for users so that they could easily and quickly make payments. When launched in 2014, Stellar was a competitor to Ripple. The creator of the service is Jed McCaleb. The Stellar Lumen platform has a token of the same name.
Stellar operating principle
Stellar positions itself as a decentralized program where you can make various financial transactions. The cryptocurrency itself is used as the unit for calculating transactions with assets. It is a means by which one asset can be exchanged for another.
For example, a user needs to transfer litecoins to bitcoins from the exchange to someone else. To perform this action, you need to register on the Stellar service, enter all the necessary information, select the transaction method and complete it as a result.
You need to pay a commission fee on the platform using lumens. It will be 0.0001 XLM.
Such operations are feasible together on the Stellar platform with a decentralized system. Functioning is provided by the operation of the SCP algorithm, which plays the role of a protocol. It is based on a ledger - an array in which there is a distributed data register. All financial transfers data is saved there.
The information of the ledger is repeated by independent nodes, due to which the register functions. If any of the nodes stops working normally, the system is able to continue working independently. This will happen because all the data is already stored by other nodes. The platform lives and functions by these mechanisms.
Stellar Lumens (XLM) features
The platform system is capable of supporting and making up to a thousand financial transfers within a second. The confirmation time for a completed transaction is a few seconds. Stellar is used to transfer or sell assets, currencies or tokens. Thanks to these points, the system is considered multifunctional. Stellar has a source code with free access, which cannot but inspire confidence in this company.
The database is decentralized due to the way it was designed. Initially purchased coins are equal to 100 billion tokens. Inflation is 1 percent. The holder of the coins of the system is the non-profit entity “Stellar.org”.
How to buy Stellar Lumens (XLM)
The purchase of cryptocurrency occurs according to the standard scheme for acquiring any altcoin that has its own blockchain. The user opens a wallet on the platform, purchases currency using an exchange terminal or through the exchange, and deposits funds on the platform. In the future, the client of the service can exchange assets for cryptocurrency.
The exchange of fiat for cryptocurrency is easily carried out using the following exchanges:
* Buying a token with Bitcoin and Ethereum: Binance, Hotbit, P2PB2B and LATOKEN.
* Buying XLM with dollars: Kraken, P2PB2B, Coinbase.
* Purchase with rubles: EXMO.
* Purchase with hryvnia: Kuna.
In order to exchange currency for fiat, you can use the exchange terminal if the transition is not carried out.
Advantages and disadvantages
Stellar uses the tools of the banking system, but at the same time it is decentralized. As a system for conducting transactions, the platform has its own strengths:
* Cross-border payments. On this platform, you can make fiat transfers using special “anchors”. In this case, the assets are not converted in double volume. The exchange takes place through a decentralized system within the platform. There are no commission fees for this. Thus, financial transfers are made much faster than with competing platforms.
* The process starts with validating blocks and leads to valid payments. It all takes about 3-4 seconds. This happens because payments go straight to the node unlike other platforms.
* Exchange on the platform is energy efficient. Due to its own decentralized protocol and system algorithms, payments are validated as efficiently as possible.
* Affordable payments under existing restrictions. If the cryptocurrency industry is prohibited in the country in which the recipient of the funds is located, he can receive his payments through fiat or another asset working under the platform.
* The system has good throughput. It is 1000 T/s, and the source code is always in open view of the entire community.
The disadvantages of the platform are worth mentioning too:
* Insufficient protection against double spending attacks, which is able to replay the transaction. Such actions within the system may be puzzling and indicate questionable activity within the program.
* Mechanisms of inflation. Stellar has a built-in inflation rate of 1 percent.
* Validation does not generate revenue. Users don't have much interest in becoming a validator.
It is important that contracts purchased within the platform have restrictions on autonomy. This is considered both a virtue and a shortcoming of the program: it is possible to create simple dApps, but the program does not recognize complex computing networks.
Development prospects
Compared to its competitors, the Stellar platform is a service with truly decentralized financial capabilities. This cryptocurrency has high liquidity. The development team is constantly working on introducing more relevant technologies into the project.
The immediate plans of the Stellar team include the development of Lightning technology and the launch of “Stellar Lightning Network”.
Many other companies have already appreciated the opportunities offered by the currency, for example, IBM or Stripe. There are more and more other firms among the partners of the Stellar team.
In addition to the fact that the company works with the European and American markets, it also extends its influence to other markets. In 2018, Stellar received a certificate for its blockchain, which confirms that the cryptocurrency protocol does not contradict Sharia law. Thus, cryptocurrencies can appear in markets where the principles of Islam operate, which is especially important for Arab countries and states in Southeast Asia.
Also in 2021, the Stellar team signed a memorandum that states that a partnership has been concluded with Ukraine. The goal of the team is to develop the cryptocurrency industry in the country.
To keep abreast of all the news related to the project, you can go to the official Stellar page.
Despite such significant advantages as a large number of partners and decentralized protocol capabilities, the competing Ripple project has more of all this than Stellar. This is due to the fact that Ripple provides more modern opportunities for the banking industry.
Data on the decentralization of Stellar is not always confirmed contrary to the statements made about it. For example, Morgan Creek did not add Stellar to its profile due to data that funds are concentrated among tiny number of people.
Users prefer other cryptocurrencies, such as Dash coins. This is all because the company releases updated tools more often to make it easier to work with assets, and is constantly educating the public. Of course, Bitcoin is still the most relevant currency and is included in all lists of coins for constant payments.
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