By Michael Scott
Definition of Stellar (XLM) Coin
This blockchain-founded decentralized protocol facilitates the transfer of digital currency and fiat money. It allows cross-border transactions between currency pairs.
Stellar has made it easy for users to generate, send, and trade digital representations on all money forms. The term ‘Lumen’ is openly founded on the network and has the XLM tag.
Stellar’s introduction to the crypto ecosystem happened in mid-2024 after a split with Ripple’s officials. This led to the creation of the LXM coin.
Stellar has a group of professionals globally with different visions and perspectives for boosting the project.
Stellar’s Founding
Joyce Kim and Jed McCaleb created Stellar. The two created the Stellar Development Foundation to work as a not-for-profit organization.
The objective was to utilize technology to aid persons requiring financial services. This strategy made Stellar unique from its initiation and continues to guide its activities.
Stellar’s Goals and Mission
Stellar aims to establish equitable access to the international financial system by enabling active participation irrespective of people’s financial status or location. The vision is motivated by the need to aid people in attaining financial autonomy, particularly in places with inadequate or remote banking services.
Stellar aims to change the international financial system by boosting its efficacy, transparency, and inclusivity.
Exploring Stellar’s Network
Stellar’s Open Network
Stellar runs on an open network, meaning any person who intends to participate can access it. The openness facilitates inclusivity and ensures a sense of community.
The open network model has several benefits, such as security, efficacy, and transparency. It ensures quick transaction confirmation, guaranteeing an excellent user experience.
The Stellar Consensus Protocol (SCP)
The SCP relies on several trusted nodes for transaction authentication, boosting the network’s efficacy and safety. It develops a system that enables nodes to attain consensus without requiring a central authority.
Every node selects a group of other trusted nodes to create a ‘quorum slice.’ To attain a quorum, adequate nodes must attain concurrence on each transaction.
Stellar Lumens (XLM)
Role of Lumens (XLM) in Stellar
Lumens are the Stellar network’s native asset and ensure high speeds, low costs, and cross-border payments. They are critical to the network’s operation as they exist in a link.
The Stellar network utilizes XLM to allow multi-currency transactions and avert transaction spam. They also ensure the network’s integrity by averting spam transactions.
Valuing Lumens
This entails considering the market cap and its impact on the Stellar ecosystem. Stellar’s present market cap is $9.16B, illustrating large-scale adoption and the potential for future growth.
Lumens value also relies on its role in the Stellar network, which is developed on transparency, financial inclusion, and transparency.
Stellar’s Financial Ecosystem
Stellar’s Collaborations
Stellar has collaborated with major tech firms like American Express and Deloitte. The collaborations seek to boost services and reach a vast audience.
Stellar and Financial Inclusion
Stellar’s mission is founded on the concept of equitable access to the international financial system. The protocol partners with regulatory bodies and financial institutions to promote compliance and offer a smooth experience for users.
Stellar Versus Other Networks
Comparison With Ethereum
Ether (ETH) powers Ethereum and executes smart contracts. On the other hand, LXM serves as the link between various currencies.
Ethereum enables smart contracts and decentralized apps, while Stellar deals with cross-border transactions and payments.
Comparison with Ripple
Ripple seeks to change how banks and financial organizations carry out global transactions. Stellar focuses on people and strives to democratize access to financial services.
Use Cases for Stellar
Traditionally, global fund transfers have been costly, slow, and intricate. Stellar aims to address this by ensuring quick, reduced-cost cross-border transactions.
Lumens acts as a link, easing asset trading on the network and enhancing transactions between currency pairs. As such, Stellar is an excellent alternative for organizations and people seeking to receive or send funds across borders.
Final Thoughts
Stellar offers a decentralized payment network, enabling small businesses to grow globally and reducing small transaction costs. The open network allows for asset transfer, making it a perfect tool for financial institutions and businesses.
The decentralized international financial model aids in creating more inclusive financial services. This promotes financial autonomy for people globally.
Editorial credit: FellowNeko / Shutterstock.com