Stellar (XLM) is a partially decentralized protocol whose functionality allows the exchange of Bitcoins or Ether for its cryptocurrency Lumen (XLM).
Therefore, we are facing a cryptocurrency exchange with a series of advantages.
On the other hand, its function is to be an intermediary of these, not a direct method of payment.
This project is actually a reinvention of another called Ripple.
Stellar Origin (XLM)
The origin of Stellar (XLM) can be traced back to Jed McCaleb, who was himself a co-founder of Ripple. Joyce Kim, attorney, was invaluable in getting the project started.
In July 2014 the platform was launched. This had an initial investment of 3 million dollars.
Through a coin offering (ICO) they get financing of more than 30 million dollars. This success attracted the interest of Mercado Bitcoin, a Brazilian exchange platform. After this, other cryptocurrency exchanges entered the business.
Stellar (XLM) Features
Let’s look at some of the main features of Stellar (XLM). We have focused on those related to its Blockchain technology.
- The consensus protocol, Stellar Consensum Protocol (SCP), was created for this network specifically. Its operation is clearly explained in the whitepaper.
- This protocol is based on the Federated Byzantine Agreement (FBA). This gives it great reliability and some features such as decentralized control or asymptotic security (based on digital signatures), among others.
- Thanks to the Horizon API, its core of work is very cohesive. In this way, it allows it to function as a web service.
- Stellar Core is the heart of this platform. In addition, it is the main person in charge of the stability of the network or the control of the historical ones, among other functions.
- Some of its advantages are speed, its ability to finance other projects through ICOs, high scalability or low commissions.
- But it also has drawbacks, the most relevant being that it is not fully decentralized. In fact, more than 90% of its tokens are owned by its foundation.
Lumen Features: Your Cryptocurrency
Let’s now look at some features of its cryptocurrency, called Lumen (XLM).
- The Lumen (XLM) is a cryptocurrency unit managed by Stellar.
- Initially, the platform (Stellar) was implemented in Ripple, but in 2015 it created its own protocol. At that time its cryptocurrency was renamed Lumen (XLM).
- Among its functions is to be anti spam. What they do is avoid empty accounts as they are needed to make transactions. All accounts must have a minimum balance of 0.5 Lumens.
- It does not allow mining your cryptocurrency. It has 100,000 million tokens and is divided between gifts, Bitcoins and operating expenses.
Invest in Stellar (XLM)
To finish, let’s see how to invest in this platform.
First, we choose an e-wallet, which can be desktop, online or mobile.
The next step is to acquire Bitcoins or Ethers, as there is no option to invest with fiat money.
From here, the investor will decide where to exchange the other two cryptocurrencies for Lumens (XLM). Thus, Stellar (XLM) offers various alternatives to invest that can make it an interesting option.