Stellar (XLM): What is it?
Stellar crypto by Crypto Nation – August 10, 2021
Stellar crypto card summary:
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Stellar fundamental Data
- Name: Stellar
- Symbol: XLM
- Type: Blockchain, Payments
- Consensus: Stellar Consensus Protocol (SCP)
- Year of creation: 2014
- Founders: Jed McCaled and Joyce Kim
- Official website: stellar.org
- Mainnet: Yes – dashboard.stellar.org
- Whitepaper: stellar.org/papers/stellar-consensus-protocol
- Code: github.com/stellar
- Twitter: @StellarOrg
Stellar market data
Below are the basic market informations regarding this cryptocurrency:
- Price: It is expressed in dollars ($). There is also its percentage change (%) over the last 24 hours.
- Rank: Ranking of this cryptocurrency among all those referenced on CoinMarketCap. This is done according to the market cap.
- Market cap: Market capitalization represents the total dollar ($) value of all coins in circulation.
- Volume: It represents the total dollar ($) amount of the cryptocurrency in question traded over the last 24 hours.
What is the goal of the Stellar project?
Stellar’s ambition is to become a decentralized platform to perform numerous operations in the financial sector.
It is indeed a platform serving as a bridge between financial institutions, individuals and banks in order to
accelerate the speed of processing of financial transactions.
Origin of the project
The Stellar project has been founded in 2014 by Jed McCaled and Joyce Kim.
Jed McCaled is also the co-founder of Ripple (XRP). Project he left in 2013, due to disagreements over the future management of the company. This is why the design of the Stellar is based on the Ripple protocol.
After that, the organization “Stellar Development Foundation” was created with the objective of “unlocking the world’s economic potential by making money more fluid, markets more open and people more independent”.
What is its use?
The Stellar has several uses. First of all, the network’s native token, the Lumens, allows cross-border asset trading, with greatly reduced fees. Each transaction costs only 0.00001 XLM.
Otherwise, the Stellar Lumens network allows anyone to issue IOUs (“I Owe You”, an acknowledgment of debt) and therefore easily create their own market.
For example, a bank can issue IOUs representing an asset it holds in its accounts, such as a company’s stock for example. The IOUs can then be exchanged with very low fees on the Stellar marketplace.
Management of the economy (as of 08/10/2021)
Initially, the Stellar network had 105 billion XLM tokens. However, on November 4, 2019, the total supply of XLM tokens was reduced by more than 50%.
There are currently around 23 billion XLMs in circulation, of the 50 billion constituting the new maximum supply.
About 30 billion XLMs are currently owned by the Stellar Development Foundation.
The majority of its capital is for the marketing and development of the company. Almost 10 billion tokens are kept for investments in other blockchain companies.
Diagram of the evolution of the cryptoactive
Overall, all cryptocurrency platforms offer XLM.
To name two reputable platforms, you can turn with confidence to Binance or Crypto.com.
Where to store your cryptocurrency
If you prefer to take your cryptocurrencies out of centralized exchanges, you can store your XLMs via various solutions:
- Atomic Wallet, a very complete and secure software wallet.
- Trust Wallet, bought by Binance, it has become the benchmark mobile wallet.
- Ledger, very secure wallet hardwares, the best known being the Ledger Nano S.
- Freighter, a non-custodial wallet web extension that allows you to sign Stellar transactions through your browser.
More details on the different types of cryptocurrency wallets on our dedicated page, accessible by clicking here.
Our opinion on this project
Stellar is one of the first crypto projects. As a result, the project is supported by a large community which ensures it a prominent place among the largest market capitalizations.
Very pleasant to use with its almost instantaneous transaction speed and ridiculous fees, this cryptocurrency was technologically well ahead a few years ago. Competition has now made a good comeback, but the project remains quietly established in its market sector, targeting businesses in particular.
With the Stellar Development Foundation owning 60% of the total XLM supply, this could turn users off. However, this project is technically especially intended for professionals in the finance sector and, moreover, it leaves a good margin of movement to finance the evolution of the project. So in the end, it’s not really disturbing.