What is Stellar & Lumen (XLM)? How Does It Work?

February 13, 2021 01:16 AM AEDT | By Kunal Sawhney

What is Stellar & Lumen (XLM)? How Does It Work?

Stellar (XLM)

Current Price Per Coin: US$ 0.4508

The Stellar payment platform provides a facility to store and transfer money. It supports faster transactions than other blockchain-backed networks.

The total supply of XLM is 105.44 billion. Its all-time high price is US$ 0.875563 per XLM.

It is currently valued 48.51 per cent below its record high.

Stellar enables accounts to exchange, transfer, and trade digital currencies of all forms—dollars, crypto, pesos, euros, etc. In contrast, the bitcoin web is created for exclusively trading for BTC.

The Stellar website claims that it does not have any owner and is publicly owned. It is an open network that handles millions of transactions daily.

Stellar is much quicker, cheaper, and more efficient than its rivals Bitcoin and Ethereum, as per its website.

In the last six years, the network has managed more than 450 million operations that have been generated by over 4 million personal accounts. Large companies, small and medium-sized enterprises (SMEs), individuals, and start-ups use its system to make peer-to-peer transactions.

Image Source: Kalkine Group @2020

How Does It Work?

Stellar does not rely on any central authority, which means no one can intervene in its network. Its blockchain-run system verifies the ledgers and updates them every five seconds.

Stellar Consensus Protocol (SCP) maintains complete technical details and synchronizes them. Anyone can install the app and conduct transactions under SCP.

For every user, Stellar’s registry records two important aspects: total account amount for e.g., like “100-dollar tokens” or “100 lumens”, and purpose of the account for e.g., “exchange 100-dollar tokens for 20 Litecoins” or “transfer an amount to particular listed account”.

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