Understanding Stellar – General Overview
The term Stellar cryptocurrency refers to a digital or virtual currency developed by Stellar Development Foundation. The organization's currency, which is called the lumen, is traded under the symbol XLM on various cryptocurrency exchanges.1 Lumens can be used by traders on the Stellar network, which is a blockchain-based distributed ledger network that connects banks, payments systems, and people to facilitate low-cost, cross-asset transfers of value, including payments.
How Does Stellar Work?
Stellar’s primary focus is on developing economies in the areas of remittances and bank loans to those who are outside of the scope of the banking services. Stellar doesn't charge individuals or institutions for using the network.
Stellar supports a distributed exchange mode. This allows users to send payments in specific currencies even though they may hold credits in another, while the network automatically performs the forex conversion. The receiver can withdraw their currency equivalent through a partner institute like a bank.
As a cross-border transfer and payment system that connects financial entities, Stellar aims to significantly reduce transaction costs and time lags.
Stellar Mining – Know The Basics
One of the most significant differences between Stellar lumens and other cryptocurrencies is how the tokens enter the market.
Major cryptocurrencies like Bitcoin are mined, and anyone can mine them as long as they have the right tools. Many of these digital currencies have a maximum supply, and people can mine them until that cap has been reached. Additionally, users often get a reward for mining a cryptocurrency.
But Stellar lumens can’t be mined. Instead, the Stellar Development Foundation released 100 billion lumens in 2014 when the network went live. Over the next five years, the foundation increased the supply by 1% each year.
The value of Stellar (XLM) is highly fluctuating, since late 2018, it has fluctuated from $ 0. 0.001227 USD in 2014 to over $0.9381 USD in 2018, presently trading at $0.2297 USD in 2022.