For those who have no idea what Stellar is; it is a decentralized payment system that enables cross-asset value transfer via Blockchain’s distributed ledger. Basically, Stellar aims to provide a quicker, highly affordable and safe platform for the transfer of money.
Back in April 2015, SDF; Stellar Development Foundation refurbished its network and introduced its latest consensus protocol. This refurbishment led to the change of the name of its token from Stellar to Lumen.
Lumen Cryptocurrency (XLM)
Stellar Development Foundation; (SDF) is responsible for the management of Stellar. The Cryptocurrency of the Stella network is known as Lumen. Its Cryptocurrency ticker is XLM.
The lumen Cryptocurrency is utilized in diverse ways all over the stellar system. Users of the lumen are demanded to keep a small balance of 0.5 lumens in their various accounts so that they can help the system to verify accounts that are no longer active.
The digital currency is also required to pay a low fee of about 0.00001 Stellar Lumens.
Benefits of Stellar
Some of the benefits of Stellar include.
Like all other digital currencies, Stellar network is also based on the Blockchain innovation. Thus, the system functions on diverse computers called nodes which are linked through the internet.
The nodes can be anybody ranging from mere users to the organizational bodies. With the network been decentralized, it is not managed by a distinct body. Hence, anyone can join the network, become a node and operate the software.
This is the major benefit of Blockchain innovation. The network entails a distributed ledger that takes on the role of documenting every detail pertaining to all transactions and accounts that currently exist on the system.
Each and every node on the network hosts its very own ledger copy, and it is synchronized with every other node all over the network. The nodes assist in verifying the transactions and managing documents on the ledger.
SCP; Stellar Consensus Protocol
Basically, the consensus is a process whereby every party needs to attain an agreement concerning a chunk of data. The stellar network demands this consensus mechanism to quicken both the verification and synchronization of transactions across every node.
Moreover, Stellar network consensus is attained through the leveraging of SCP within two to five seconds. It makes use of the FBA algorithm; Federated Byzantine Agreement built by David Mazieres.
The network enables users to bid currency exchange provisions on its ledger. The offers take the role of commitments for exchanging digital currencies, at any rate, determined by the Lumen Users.
The network enables the exchange of both regular fiat currencies and digital currencies. Also, it includes cross transactions between the two currencies.
Purchasing & Storing Lumen
You should note that SDF minted its complete supply of a hundred billion XLM tokens at the start. And so, the lumen tokens cannot be built through XLM mining. Meanwhile, the users can gain Stellar Lumens XLM through their services as nodes on the system.
The Cryptocurrency is available on diverse top Cryptocurrency exchanges such as Binance for trading. Other exchanges include.
For storing Stellar Lumens XLM, there are diverse wallets available. The wallets can also be seen on various platforms, and they include.
To Wrap it Up
The future of Stellar looks to be a bright one! With its Lumen token being listed in a couple of well-known exchanges, it’s only a matter of time before it gets accepted all over the world.
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