Table of Content
- What Makes Stellar So Special?
- How Many Stellar (XLM) Coins Are in Existence?
- How Secure Is the Stellar Network?
- Where Can I Purchase Stellar (XLM)?
Stellar Cryptocurrency, in a nutshell, is an open network that enables money to be transferred and stored. When it was first launched in July 2014, one of its objectives was to increase financial inclusion by reaching the world’s unbanked; however, its focus quickly changed to assisting financial companies in connecting through blockchain technology.
Lumens, the network’s native token, acts as a bridge, making it less costly to transfer assets across borders. This is intended to put current payment providers on the defensive since they often charge exorbitant rates for comparable services.
If this all seems familiar, it is worth remembering that Stellar Cryptocurrency was founded on the Ripple Labs protocol. The blockchain was formed due to a hard fork, and the code was changed as a result.
After quitting Ripple in 2013 because of disputes about the company’s future direction, Jed McCaleb launched Stellar with the lawyer Joyce Kim.
“The entire original idea of Stellar is that you can have fiat currencies and various types of forms of value operate in tandem with each other and with crypto assets,” McCaleb said to CoinMarketCap in September 2020. This is critical for making this material mainstream.”
McCaleb aims to guarantee that Stellar can provide a method for individuals to convert their fiat currency into cryptocurrency — and to remove the friction that people often encounter when transferring money across the globe.
He is now the CTO of Stellar and the co-founder of the Stellar Development Foundation. This non-profit seeks to “unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered.”
What Makes Stellar So Special?
Fees are a source of contention for many people. However, high prices for making cross-border payments aren’t limited to fiat-based payment systems like PayPal; transaction fees have been known to skyrocket on the Bitcoin and Ethereum blockchains due to congestion.
Stellar is unique in that each transaction costs just 0.00001 XLM. Given that one unit of this cryptocurrency costs just a few cents at writing, consumers can retain more of their money.
Few blockchain initiatives have been able to obtain collaborations with well-known technology corporations and financial organizations. Stellar and IBM collaborated a few years ago to develop World Wire. This project enabled significant financial institutions to submit transactions to the Stellar network and trade using bridge assets such as stablecoins.
Although other blockchains offer community funds, which enable donations to be provided to initiatives that benefit the ecosystem, Stellar allows its users to vote on which projects should get this support.
How Many Stellar (XLM) Coins Are in Existence?
When the Stellar network debuted in 2015, a total of 100 billion XLM were issued — but things have altered since then. The entire supply is now 50 billion XLM, with a circulating supply of 20.7 billion.
The Stellar Development Foundation stated in 2019 that it would destroy more than half of the cryptocurrency’s supply. This implies it currently owns about 30 billion XLM. While part of this money will be used for marketing and development, almost one-third will invest in other blockchain projects.
The foundation explained why it made this dramatic step — and promised not to burn any more XLM in the future — saying, “SDF can be leaner and perform the job it was intended to do with fewer lumens… Those 55.5 billion lumens weren’t going to boost Stellar adoption.”
How Secure Is the Stellar Network?
This network is protected by the Stellar Consensus Protocol, which has four key characteristics: “decentralized control, low latency, flexible trust, and asymptotic security.”
Anyone may participate in the process of reaching an agreement via SCP, and no single entity can end up with the majority of decision-making authority. Transactions are also verified quickly and inexpensively — and protections are in place if unscrupulous actors want to join the network.
Where Can I Purchase Stellar (XLM)?
Stellar may be purchased via various significant exchanges, including Binance, Coinbase, Kraken, Bittrex, Bitfinex, Upbit, and Huobi.