When we talk about cryptocurrencies, some of you will give Bitcoin as an example. It cannot be denied that Bitcoin is one of the most popular examples of a cryptocurrency that exists in the world of cryptos. We all know that cryptocurrencies are quite new these days and some people, especially those who are new in the world of cryptocurrencies, might find it hard to understand the idea of a cryptocurrency.
Another popular cryptocurrency is stellar that was powered by XLM or known as lumen. When we say “stellar,” we are referring to a decentralized and open source payment protocol that will enable you for faster and easier cross-border transactions with the use of any currency pairs. Similar to the other cryptocurrencies, Stellar or mostly known as XLM usually operates with the use of the blockchain technology. Lumen or XLM is the digital currency as well as the native asset of stellar. XLM or lumen works the network of stellar as well as its entire operations like how ETH or ether works the network of Ethereum.
The primary goal of Stellar is pretty much easy to understand, while the technology itself is quite hard to learn, most notably for a person who does not have enough background knowledge about financial technology (fintech) or even computer science.
We all know that the entire cryptocurrencies that are present in the world of crypto are all decentralized control compared to an ordinary central banking system. These decentralized systems are all controlled by the distributed ledger technologies, such as the blockchain processes.
As I mentioned a while ago, Bitcoin is one of the most popular cryptocurrencies that was launched way back in 2009. On the other hand, since it was launched, more than 4.000 of the alternate cryptocurrencies were established, and Stellar (XLM) is one of them.
The internet comes up with the various network servers that contain applications, websites, as well as the date. Similar to the internet, Stellar (XLM) is one of the decentralized servers of the network in various locations that works as the distributed ledger. The work of a distributed ledger is to save the entire transactions happening in a system for the companies and people.
The whole copy of the ledger can be found in every server of Stellar. The said network come to be the more secure and robust with numerous servers since they can connect with each other to check the transaction and save it in the distributed ledger. The ledger will record your penny as your credit that was issued by the anchors.
The anchors here will act as a gap bridge between the current currency as well as the Stellar network. Both the payment processors, as well as the banks, are one of the examples of the anchors that you can see in the real world. The credit will be delivered to your account, which is similar to the virtual wallet, as an exchange for the deposits. A particular user should trust the anchors in holding their money. The credit can be both sent and received by the individuals of the Stellar network.
Stellar (XML) also features a distributed exchange. It only means that you are also allowed to send US Dollars credit with the use of EUR credit between your relatives and friends. The Stellar network will work for it with the lowest rate. After that, they can now get the money that can also be used to withdraw with the help of an anchor that also supports the current currency.
A single lumen or XLM is a single digital currency unit, similar to Bitcoins. XLM is considered to be the native asset of the network. Even though you can’t accommodate a single limen in your hands, they are very important when it comes to the Stellar network. It is because the lumen contributes to the capability of moving the money in every corner of the world, and to perform various transactions between the numerous currencies securely and quickly.
One o the biggest financial consulting companies in the world is Deloitte. It sets out to improve the core banking spaces with the use of blockchain technologies. Thus, they have created an example that decreased the cost of transactions for about 40ercent. Every transaction will be processed within five seconds. “The client was amazed by how fast and how cheap those transactions were,” stated Eric Piscini.
Stellar (XLM) is maintaining a stable trend from the start of the year 2019. It has the coin price that is peaking for about .1 US Dollar way back April in the previous listings of Stellar.
Other companies, as well as Google, stated that for the upcoming two years, the value of every lumen would be ranging from 10 US Dollars to 100 US Dollars. It only means that Stellar is one of the bigger revenue that you can use in the near future.