Stellar XLM Price

In addition to its open source and scalability, Stellar has a number of advantages. In particular, it has a high transaction confirmation rate and can perform thousands of transactions per second. In addition, this platform has a built-in decentralized exchange and a unique algorithm, allowing users to get the currency they are interested in.

Stellar is operated by a peer-to-peer network of nodes that are independent from each other. Failure of some of them will not affect the operation of the entire system. Transactions are charged at a fee of only 0.0001 XLM.

Stellar Concept

The main idea of Stellar is to adapt the existing payment infrastructure for working in this blockchain network, which will already provide the fastest possible transfer of funds into another currency or into any other account.

This could really make life easier for small business and individuals. With Stellar implementation there will be no need to open a foreign currency account to transfer money to another country, or to make a second transaction to convert their money, and so on.

Stellar system compare to SWIFT

Stellar History

The idea of creating Stellar had come from Ripple Labs employees Jed McCaleb and Joyce Kim. This digital currency was written on the Ripple protocol, but Jed and Joyce later left the company, blaming it for being overly centralized.

• In 2015, the project was separated from the Ripple platform and started working on its own protocol.
• In 2017, Stellar began to cooperate with the American company IBM, which is one of the world leaders in the field of software development.
• In 2018, the platform was recognized as one of the leading cryptocurrency projects in the world. The project was second only to Ethereum by the number of public token offerings in 2018.

Stellar Lumens (XLM)

The native token of the system is called Lumen with an XLM ticket. However, in the press and on some exchanges you can find the old name of the cryptocurrency which is Stellar with the ticket STR, which the platform used before the transition to the Stellar Consensus Protocol (SCP).

Lumen tokens have two purposes:

1. Spam prevention. The system charges a small fee of 0.00001 XLM on each transaction. This prevents network overload caused by launching a large number of unnecessary transactions (spam attacks).
2. Promoting multi-currency transactions. The token serves as a bridge between currencies when a direct transfer between them is not possible.

CBDC implementation on Stellar

Something that many users are not happy with is that Lumen cannot be mined. The number of Lumen to be released by the developers has been known since the presentation of the project.

Initial issuance of Lumen equaled 100 billion tokens, but in November 2019 the developers decided to halve the number of coins in order to protect them from inflation. Today, 20 billion Lumen are in free circulation, and 30 billion belong to the Stellar Foundation, to be gradually put into circulation.

Nevertheless, users can earn tokens by actively supporting the network and participating in its development. For example, users who process financial transactions in the system are rewarded with commissions for intermediary services. It is also possible to earn tokens by freezing some crypto on your wallet.

XLM Purchase and Storage

Today there there is no problem with buying cryptocurrency, as it is supported by a large number of crypto-exchanges: Binance, Upbit, Bittrex, etc. Almost 40% of all trading volume comes from Binance, which is probably the best place to consider for trading and short-term storage of XLM. For long-term storage, you can use the official crypto wallet Stellar Wallet, which is available for all OS.

Stellar Technologies

Stellar was originally launched as a "fork" of Ripple, which uses a consensus mechanism based on BFT. However, a year after the launch, the project switched to its own protocol developed by David Mazier named Stellar Consensus Protocol (SCP).

The platform's transition to SCP completely disconnected it from Ripple. Basically, the principle of SCP and BFT is similar, but unlike BFT, in the latter the block validators are predetermined by the company or organization. Development of its own consensus algorithm allowed Stellar to solve the main disadvantage of Ripple which is the lack of decentralization.

Stellar Consensus Protocol (SCP) (Full Protocol)

Despite similarities with other blockchain platforms, Stellar has a number of special features. The Stellar network is built with multiple servers that communicate with each other every 2-5 seconds. In addition, each server has a public registry that records all transactions made in the network. The registry is updated with the frequency of a few seconds.

When you place an online order, the protocol automatically selects the most favorable exchange rate. On the one hand, this is no different from exchanging one currency for another. However, thanks to the algorithm used, more than two currencies can be involved if it is more profitable for the participants of the transaction. Each transaction is charged a small fee in XLM, which is a fraction of cents.

Stellar NFT

NFTs were introduced into the Stellar ecosystem in late 2021. Now Stellar's blockchain supports the creation and transfer of non-interchangeable tokens (NFT).

There is one indisputable advantage of NFT on Stellar and that is the miserable transaction fees; creating an NFT will cost about 3 XLM, which doesn't compare to the fees on the similar Etherium network.

The Stellar network is quite an option if you want to try yourself as an NFT artist or use this technology for other purposes.

Stellar Advantages and Disadvantages

Stellar at the moment is a highly promising project, but it still has its pros and cons.

Summary

Stellar was created as a direct competitor to Ripple. However, compared to the last one, this cryptocurrency is truly decentralized, providing community members with the opportunity to participate in the life of this project.

Also, one of the other most important of the current advantages that makes Stellar a promising service is its high liquidity. Cheap and fast payments in any currency is a service that will only grow in demand in the future, while Stellar offers the perfect solution for this.