Cryptocurrencies have been a hot topic for the past few months. You would hear a lot of financial investors and influencers on the internet talking about cryptocurrency. With all this craze about cryptocurrencies, you must have at least wondered once what all this is about. Cryptocurrencies are here to stay, they are not going anywhere. As most people only hear about Bitcoin they only know about bitcoin. However, there are more cryptocurrencies that are excellent from the perspective of investment. If you are considering investing in cryptocurrencies then it is important for you to have in-depth knowledge about cryptocurrencies. In this article, you will be learning about one such cryptocurrency i.e, stellar.
What are you waiting for? Let’s dive deep into the topic
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What is Stellar (XLM)?
Stellar (XLM) is one of the best cryptocurrencies in the market currently. This is an open network that is best for moving and storing money. The best thing about it is that it is powerful, borderless and limitless. It makes it possible for people to send, create and trade the digital representations of anything such as bitcoins, dollars, pesos, etc.
Stellar is a popular payment solution that is similar to Ripple. Stellar was introduced by Jed McCaleb. Just like Ripple, its main objective is to connect global financial institutions and reduce the time and cost for cross-border transfers. Initially, Ripple and Stellar use similar protocols.
Keep a note, Stellar is open-source and Ripple is a closed system. Though their protocols are similar, they have different users. It means Ripple works with top financial institutions. Stellar mainly focuses on developing markets. Also, Stellar has several use cases for its payment technology.
Who created Stellar (XLM)?
Now, let’s discuss the creator of Stellar.
The man “Jed McCaleb” introduced Stellar cryptocurrency with Joyce Kim in 2015. McCaleb explained that the design of the Stellar coin is that users can hold fiat or traditional currencies and other types of a currency run parallelly with crypto assets.
McCaleb has set a goal for Stellar i.e to ensure this cryptocurrency can offer user’s an easy method of moving fiat currency into cryptocurrency. With the invention of Stellar, user’s can seamlessly send or receive money across the globe without hassles.
Currently, Jed McCaleb is working as CTO of Stellar and co-founder of “Stellar Development”. Stellar is a non-profit organization that truly aims to get people even more interested in earning money.
How does Stellar work (XLM)?
Stellar offers basic operation that is similar to most of the traditional decentralized payment systems. XLM operates a system of decentralized servers with a shared ledger, it is updated each 2 – 5 seconds among every node. The key difference between Bitcoin (BTC) and Stellar (XLM) is its consensus protocol.
Simply put, Stellar’s (XLM) consensus protocol doesn’t depend on the complete miner network in order to approve the transaction. XLM uses the “Federated Byzantine Agreement” algorithm. FBA enables efficient and faster processing of all transactions. Also, XLM uses quorum slices for approval and validating the transactions.
Every node in the network can select another set of nodes that are trustworthy. A transaction should be approved by every node inside the set. Once it gets approved by all the nodes, it is acknowledged as an approved transaction. This short and simple method has made the network faster. Stellar can process around 1000 network operations per 4 seconds.
How many Stellar (XLM) tokens are there in circulation?
The stellar network was launched by “Jed McCaleb and Joyce Kim” in 2015. During the time of launch, 100 billion Stellar coins were issued. Currently, 50 billion Stellar coins are in the total supply. The circulating supply of Stellar is 20.7 billion to date.
Stellar Development has announced that the foundation was burning more than half of Stellar’s crypto supply. It means the Stellar development foundation can control around 30 billion XLM coins. Among them, a small portion of the capital will be given for helping the business development and marketing. Approximately one-third of the capital is reserved for especially investment purposes in other top blockchain ventures.
What makes Stellar (XLM) unique?
It’s no surprise that crypto fees are always a sticking point. Investors are facing difficulties while making cross-border transactions. Thanks to Stellar! Stellar charges 0.00001 XLM for every transaction. Sounds amazing right? Yes! One unit of Stellar coin will cost only a few cents. It means Stellar ensures that all the investors will keep the maximum of their money.
There are several blockchain projects that have endured to secure partnerships with top technical organizations and fintech companies. A few years ago, the Stellar (XLM) and IBM company have teamed up to introduce World Wire, which is a project that provides massive financial institutions to submit large amounts of transactions to the Stellar (XLM) network. Also, transact using bring digital assets like stablecoins.
Features of Stellar (XLM) blockchain
Hope you’ve understood what is stellar (XLM) is now let’s have a look at Stellar key features that really matter
- Stellar is an outstanding open-source platform for both storing and moving funds.
- Within simple clicks, Stellar will send or trade multiple forms of digital representations of money such as dollars, bitcoin, and more.
- Leverage the several currency-backed crypto coins that are already on the network.
- Asset exchange is the popular feature of Stellar. Investors can easily swap between coins through simple functions that are already built into the Stellar protocol.
- Micropayment service is making Stellar user’s happy. Power your payments or transactions of any size on Stellar. Enjoy flat charges and secure transactions.
Wrapping up
The stellar network is hoping to create a powerful as Bitcoin. But, Stellar ensures to offer even more user-friendly and compatible with traditional monetary system. Stellar is an open-source network, especially for payments and cryptocurrencies. The platform makes it easier to send, trade and create a digital representation of every form of funds. Hence, every financial system can easily work together on the Stellar network. As Stellar is a decentralized platform, it’s best for trading all types of money in the most efficient way.
