Faster, cheaper transactions with Stellar
Stellar (XLM) is a completely decentralized consensus-based platform, which was designed to support any type of currency. The best thing about it is it has a decentralized stock exchange that can be used to trade any kind of asset or currency.
Since the Stellar network does not use mining technology, all tokens exist right from the moment the payment network was launched. The majority of them are held by the non-profit foundation Stellar.org; Stellar.org distributes the crypto-coins as follows:
- 50 billion XLM: to be given in small amounts to as many people as possible;
- 25 billion XLM: to be given to other companies and non-profit organizations so as to reach people that stellar.org would not otherwise be able to reach via the direct registration program;
- 20 billion XLM: given to holders of Bitcoin and XRP (see Ripple);
- 5 billion XLM: kept by Stellar.org for certain operations.
Stellar gives its users the opportunity to send any currency they own to someone else in a different currency via the integrated decentralized exchange platform. The users can receive any type of currency by using the account that they have added.
For example, if you want to send an amount of dollars to someone you know by using their Bitcoin balance, Stellar will automatically convert BTC to USD. The above-mentioned payment network will identify and use the best exchange rate for your financial transaction.
The basic cryptocurrency of the Stellar network is Lumen: it is used to pay transaction fees, and it facilitates multi-currency transactions. Interesting enough, your account must have at least twenty lumens just to prove its authenticity.
Some of the features that differentiate Stellar.org from other payment networks are:
smart contracts and multisignature transactions; the confirmation time is between 3 and 5 seconds; the inflation remains at 1%; it supports thousands of transactions per second.
(Stellar Lumens CoinMarketCap.com)
From Stellar to Lightyear
In order to help the most important actors in this sector to integrate the software it has to offer, the decentralized payment network Stellar made the announcement that it will create a monetary by-product. Lightyear.io, the new prodigy project, will positively contribute to the Stellar system development.
Jed McCaleb, the founder of Stellar, wrote on the official blog that “There is a lot of opportunity/demand to generally facilitate integrating and operating on the network for anchors and other companies. This is not just a business opportunity but also will greatly accelerate network adoption, increase the overall utility of the Stellar network and overall will be very positive for the ecosystem.”
Stellar is using the blockchain technology to deliver fast, secure, and low-cost transactions. The organization wants to mediate between banks, payment systems and individuals.
About the things that will change, Mr. McCaleb wrote “Lightyear will continue the partnership work started by SDF. It will focus on working with new and existing partners, help with implementation, and create products and services on top of the Stellar network. The trajectory of Stellar adoption is already accelerating and Lightyear will push it even further.”
Lumen is shooting for the stars and it’s drawing the attention of a considerable number of investors, so maybe that’s why it had such an impressing growth this year.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.