Stellar Lumens is a promising cryptocurrency with some exciting features. It is a decentralized and open access platform that allows the exchange of currencies and assets through its autonomous exchange. This open source blockchain uses advanced technology. Because of this, many investors are interested in the course of the Stellar.
Here is a Stellar Lumens course guide that will allow you to better understand its definition, its operation and its usefulness.
Stellar Lumens (XLM) definition: what is it?
The Stellar Lumens was born on July 31, 2014, under the ingenious idea of Jeb McCaleb and Joyce Kim. As a Bitcoin pioneer, Jeb McCaleb is known as a co-founder of Ripple and the creator of the Mt.Gox marketplace.
Stellar Lumens is an open global financial network focused on individuals, businesses and financial institutions. The project of this platform is to facilitate international transfers and micro-payments. Transactions are done instantly, i.e. 3 seconds to validate a protocol.
Since 2015, the token has changed its name from Stellar to Lumen. Currently, 50 billion XLM tokens are available on the cryptocurrency market. The platform has signed partnerships with IBM and some organizations to transfer money between Europe, the Middle East and Africa.
How does the Stellar Lumens work?
Stella uses a network of decentralized servers which are responsible for verifying transactions on the blockchain. In practice, it functions as a flexible and inclusive protocol between entities and partners. Here is the procedure for making a transfer via the Stellar network:
- Funding the account. The first thing to do is to deposit the funds to an anchor point on the network. This anchor will be responsible for storing the funds transformed into Lumens before sending them to the Stellar network.
- Transfer of funds to the network. The anchor will credit your virtual wallet through the decentralized network. And it is from this moment that the Lumens will be converted into the desired currency (dollar, euro …) in the public ledger. As a reminder, the exchange rate is relatively low.
- Transfer of funds. The correspondent’s account is automatically credited with the amount exchanged in one of the currencies. As soon as the transfer is confirmed, the receiver can make a withdrawal in an anchor that supports this currency.
Like Ripple, Stellar Lumens uses blockchain technology. It is an independent network of computers that allows investors to buy and sell currencies on a public ledger. This decentralized exchange is kept in a distributed register. In any case, the presence of a third party is not required in the payment system. The integrity of the transactions is therefore ensured by the validators of the Stellar protocol.
A copy of the transactions is automatically sent to all the Stellar servers in the system scattered around the world. This is what explains the power of this peer-to-peer network.
Anyone has the right to own a decentralized server. In fact, the network becomes robust when the number of servers is high. There is then an SCP (Stellar Consensus Protocol) which examines and synchronizes transactions across the network. Either way, the Stellar system automatically and easily converts money using the public ledger. Likewise, it uses XLM to operate exchanges.
The Stellar Lumens blockchain consists of ledgers and anchors. While the former facilitate trade, the latter issue credits. These entities ensure the conversion of digital currencies incorporated into the network. No need to rely on banking services anymore, as liquidity is stable and fast.
The Stellar Lumens blockchain explained
When we talk about blockchain, we mean a frequently updated public ledger that helps prevent erroneous transactions without resorting to a banking institution. Simply put, it is a secure and transparent technology that stores and transmits financial data. No central body is involved in the distribution of data to users. In other words, users don’t need a distributor or mediator to authenticate transactions.
In short, the Stellar Lumens blockchain is like an endless book that categorizes accounting records. Users are thus notified each time changes are made to a page. All members of the blockchain can verify all transactions in the Stellar system.
Blockchain Stellar technology uses an algorithm to assign a digital fingerprint to each block. This hashing process creates a certain immutability. It becomes therefore impossible to falsify data validated on the computer network. This is possible if and only if all the blocks are changed in their entirety.
The value of the Stellar
Since the launch of Stellar Lumens in 2014, it has been noted with great satisfaction that the value of this virtual currency continues to increase.
Its price per unit tickled $ 0.92 in January 2018. Subsequently, the cryptocurrency collapsed significantly by 45%. Currently, Stellar’s price is stable as the unit price hovers around 0.65 euro. Thanks to its capitalization, the crypto currency ranks 14th in the world ranking. The question now is, how far will Lumens go?
To track the price of the Stellar, head to CoinMarketCap.
What is the Stellar Lumens used for?
The digital currency used on the Stellar network is Lumens. Star lumens offer several general and practical uses that should be noted:
- Security of exchanges. La plateforme Stellar ne cesse de captiver l’attention de ses utilisateurs du fait de sa facilité de paiement. Les procédures de paiement s’y déroulent de manière instantanée et sécurisée. Le protocole est capable de traiter des milliers de transactions par seconde.
- Decentralized market. A public ledger waits for actors on the Stellar blockchain to trade assets and currencies. This decentralized exchange then makes it possible to transfer any currency to a user in any other currency. In short, the Stellar platform converts currencies with the best exchange rate. Moreover, the fees taken in each transaction are insignificant (i.e. 0.0001 XLM).
- Personalization of Initial Coin Offering (ICO). It is possible to customize ICOs on the Stellar Lumens network to benefit from features like the Lightning Network. This customization also concerns guaranteed debts, the issuance of dividends and even fiduciary deposits.
- Decentralized control. Online transactions take place on the basis of consensus among the nodes. There is no control from a central authority. Minors trust each other when validating transactions.
What are the Stellar Lumens wallets?
Choosing your Stellar wallet depends on how much XLM you have and how you want to use it. There are several ways to log into a Stellar Lumens wallet. You can use either a web wallet, a downloadable wallet, or a hardware wallet.
The web wallet
Online wallets are very often associated with exchange sites and they are used to store XLMs. This means that you can access your account wherever you are as long as there is an internet connection.
Today, eToro remains and remains the most secure web wallet. This cryptocurrency exchange is the most qualitative. Only this wallet is not free because users pay “overnight fees” to keep Star Lumens in the eToro account.
The dowloadable wallets
There are mainly three Stellar wallets for download. These include Lobstr, Solar Wallet and Keybase, among others. You can install them on your mobile devices (IOS or Android) and on the desktop computer (Mac / PC).
Desktop wallets are downloadable programs that facilitate the management of cryptocurrencies based on private keys. By way of illustration, the following destop wallets support Stellar Lumens: Foxlet Stellar, Atomic, Solar.
When it comes to Stellar mobile wallets, we can mention Stargazer Stellar and Infinito.
Hardware wallets feature advanced technology. It then becomes impossible to hack private keys since they are never connected to the Internet. Investors in Stellar Lumens love them for their high standard of safety and cold storage.
Here is the best way to connect to the Stellar network. You have the choice between Trezor and Ledger Nano X to check the amount of Lumens available on your account. All you need to do is log into the Stellar Account Viewer.
Stellar Lumens Paper Wallets are highly recommended for storing XLMs offline for a short time. Account data is stored on a sheet of paper. It will therefore be impossible for hackers to steal the private key.
Benefits of Stellar lumens
- Speed and Scalability of Transactions: Stellar uses an algorithm that enables faster transactions without the need to be approved by the mining network.
- Decentralized and Open Source: Stellar is an open source, decentralized protocol for digital currency money transfers that enables transactions between any currency pair.
- Excellent level of security thanks to multi-signature transactions
- In partnership with IBM, Deloitte and Stripe, IBM is currently developing its own stellar coin based on the Stellar platform.
- XLM is a current bridge and reduces the potential for network spam
- You can use the platform to issue your own tokens
- Integration of a decentralized exchange
- Ethical platform managed by a non-profit organization
- Very low transaction fees to achieve huge savings and more attractive exchange rates
Limits of Stellar Lumens
- Competition from other cryptocurrencies: Stellar faces significant competition from other cryptocurrencies. The Ripple payment protocol is its biggest competitor.
- Over 100 billion tokens in total supply and the Stellar Development Fund controls these coins.
- Stellar uses a constant inflation model. Bitcoin in comparison to a fixed supply.
- Stellar does not work with smart contracts as it does with Ethereum.
How to get Stellar (XLM) cryptocurrency?
Obtenir des Lumens stellaires est chose plutôt facile. Il existe plusieurs façons pour y parvenir.
Exchange your money for Stellar Lumens
If you want to have large amounts of Stellar Lumens, you can simply exchange them for your euros on an exchange platform like eToro. You will benefit from going to a cryptocurrency site like eToro. However, take the time to check the applicable commissions on each trading platform so as not to affect your earnings.
Here is the tutorial to get XLM on eToro:
- Opening an eToro account: fill in the fields and tick the boxes
- Funding the account: indicate the amount to be transferred. Minimum deposit is $ 200
- Purchase of Stellars proper: making an opening order based on the funds transferred
Get Stellar on Airdrops
It is not possible to mine Stellar as it is in other cryptocurrencies. Lumens XLM are pre-mined. From the launch of this virtual currency, 100 billion Lumens were created and there are currently 18 billion tokens in the financial market. Moreover, you cannot staker the Stellar.
On the other hand, you will be able to get XLMs for free from airdrops that ensure the free distribution of Lumens. This operation aims to expand the use of Stellar Lumens.
The free distribution of XLM tokens is special in that it increases the visibility of this crypto currency in the eyes of the world. The user benefiting from the tokens will undoubtedly know about the offer around him. At the same time, Stellar arouses an admiration of the community around him. In the end, the beneficiaries of the good plan should invest their own funds after placing the free tokens.
Suddenly, the economy becomes more inclusive with the use of this financial service. The biggest beneficiaries of this distribution program are the entities, partners of Stellar Lumens and the users of Ripple and Bitcoin.
You can learn all about Stellar airdrops by following sites like aidropalert.com.
Stellar Reviews and Predictions (XLM): Is It Too Late to Invest?
Looking at the course of the Stellar Lumens, it is clear that our opinion of the Stellar is positive.
Project Stellar is constantly trying to increase its market share. As announced by the Head of Partnerships of the Stellar Development Foundation, Stellar is now working in many countries around the world to strengthen its technology and and is in partnership with banks and major players in the financial sector.
Here are the reasons that suggest the Stellar cryptocurrency has a bright future for 2020:
- An increase for Stellar assets. Years go by and look alike with Stellar Lumens. Each year, there is an increase of over 70% of XLM assets. The Stellar ecosystem is booming. It is therefore understandable why the number of Stellar Lumens accounts is doubling every year.
- Liquidity and accessibility of Stellar Lumens. Thanks to blockchain technology, it is possible to obtain and store XLMs. These days, trading sites like eToro have made Stellar Lumens easy to use. Moreover, the Lumens is starting to become a preferred means of payment for large distributors.
- Safe haven and stability. Lumens is a virtual currency of the future for the simple reason that it is stable. This is justified by the fact that crypto does not depend on an economic system and even less on political power. In the years to come, this stateless currency will be a safe haven just like gold.
- No risk of inflation and devaluation. The rate of inflation is easily manageable by Stellar Lumens computer programs. Therefore, the risk of devaluation is minimal since the value of XLM is stable.
When it comes to making a prediction on the Stellar price, some resources such as Cryptoground.com claim that the XLM price will hit $ 0.105 this year that if it continues its current momentum it could hit a $ 0.742 over the course of the year. the next 5 years.
Conclusion: is Stellar Lumens cryptocurrency a good investment?
As with any other cryptocurrency, there is no definitive answer to this question.
It is very difficult to predict the future or the price of Stellar or any other cryptocurrency. Having said that, our opinion, based on the projections mentioned above, is that this coin has a bright future and we expect a bullish price prediction for the next few years.
If you want to invest in XLM, we always recommend that you arm yourself with as much knowledge as possible and only invest what you can afford to lose.
In short, Stellar Lumens remains and remains the ideal solution to diversify your investments. The growing number of its users and its international reputation are sufficient proof of its undeniable reliability.
Frequently Asked Questions
What do we mean by Stellar Lumens?
Stellar Lumens is presented as a decentralized and easy-to-access platform that enables fast cross-border transfers and micro-payments.
What is a Lumen (XLM)?
A Lumen (XLM) is defined as the unit of the digital currency of the Stellar network.
What is the use of the Stellar blockchain?
The Stellar network makes it possible to change values under XLM and to create a clean market from the issuance of IOUs.
What sustains the Stellar network?
The Stellar network relies on a network of actors who validate transactions within a period of time.
How to trade the Stellar Lumens crypto-asset?
To purchase Stellar XLM, simply go to the eToro exchange. This platform allows you to buy assets and currencies in minutes.
How are XLM tokens stored?
You can store your XLM tokens in Stellar wallets on computers, the most popular of which are: StellarTerm, Stargazer, Stellar Destop Client.
How is Stellar Lumens mining going?
Stellar Lumens cannot be mined. It is considered a pre-mined cryptocurrency.