Stellar is also known as Stellar Lumens. It is an open-source for digital currency. Stellar is a disseminated and decentralized protocol to make money transfers. It also allows the cross-border money transactions blockchain, which means one can exchange between any pair of currencies. It is supported by Delaware which is a non-profit organization. Stellar is a product of Stellar Development Foundation. This company was started in 2014 on July 31.
Before launching the Stellar Company, the founder of Stellar launched a similar project which was named as ‘Secret Bitcoin Project’. Stellar was created in partnership and collaboration with CEO Patrick Collison, after collaborating with Stripe the company finally came into existence in July 2014. Stripe gave $3 million for funding Stellar.
What is Stellar Cryptocurrency and how does Stellar Work?
As Stellar is an open-source for Exchanging tokens or Money using its Consensus Protocol, Several servers runs for the implementation of the software of the protocol, and with the help of the internet, they connect and communicate with other servers of the Stellar. There are 3 nodes that are being operated by the foundation of Stellar development. Apart from this, they are also conjucted with other 21 organizations which come out as a total of 66 nodes.
Stellar also works in the same way just like a bitcoin does. But the different in this cryptocurrency is that it does not gather information from different networks, as its centralized source like a bank, so it is distributed in various interconnected servers or nodes in the network of Stellar.
To prevent your account from any malicious attacks, Stellar network would ask you for a fee and the amount would not be very high. The fee would be just 100 stroops per operation which is equal to 0.0000100 XLMs. You can take the example of stroops for a better understanding rather than being sticked on the lumens.
Tips to Understand Stellar Lumens Cryptocurrency
The first thing that you need to understand about Stellar Lumens is that it makes easy and possible for people to send and create digital trade in form of different currencies such as pesos, Dollars, bitcoin, etc. The design of Stellar is designed in such a way that you can trade with so many countries all together just by a common network.
It is said that there is no founder of Stellar as such, the users of the company are the founders of the company because without them the company would not have been existed.
It is also a system which is based on blockchain but it doesn’t work like a typical blockchain, the protocol and the interface of the company is designed in a way that it works way too faster, the goal of the company is to make millions of transactions at the same time, and it can be possible it the company works faster. For faster network, it would need a fast signal too.
Also, another factor which also matter in the efficiency of Stellar Lumens is that it should be cheap and it is designed in the same way, people are using this platform because it cheap and then only company would be able to reach its goal of making millions of transactions per second and that too simultaneously.
How did Stellar Lumens become the sixth-largest Crypto?
Whenever a company works with the world’s most famous platforms, the company would eventually get famous because the more users it would be able to attract and more account would be made on the Stellar. In the same, Stellar also collaborated with IBM which is a very famous and one of the largest companies, resulting into the sixth rank of Stellar as a cryptocurrency in the world.
It is based on blockchain and the project is known as Hyper ledger Fabric, and the aim of the same is to distribute ledger technology to create a vast scope in the protocol for the successful and feasible payments of cross-borders.
Stellar became the sixth largest cryptocurrency in the year 2018 July, it surpassed Litecoin in the cap of market and it came out as one of the most trusted and reliable company of the same domain.
Stellar Blockchain: What it is and how it works?
The phenomenon of Stellar blockchain is bit critical and difficult to understand. But in the most simple words, Stellar works based on network in which shares are done, distributed to a database which can be accessed by anyone around the world.
You can also take a share of any coin, which you can sell when the cost of the coin rise to get a huge profit. Stellar Lumens has some more unique consensus ideas to lead even more across the globe. It majorly looks for the trade in XLM.
How do Stellar Lumens work good for Business?
If you have the same question in your mind that Stellar Lumens is good for business or not then definitely, Stellar Lumen works well for the business because once you buy an XLM coin, there are chances that the prices of the coin are more likely to rise, so once they rise you can immediately check in avail of the benefit.
The same amount you can use to start a business in cryptocurrency. Stellar is more beneficial in the business because when big payments have to be done across the borders, it is the best way. There is no fear of losing the money, it is safe. Nobody can use your account without your identity proof.
It works for the business because it provides universal currencies to make transactions. In business, Stellar also protects the integrity of the signals by preventing scams and hackers. As everybody is aware of the fact that while using social networking sites, by hook or crook some sort of malware end up entering your device, in the same way, you might find more protocols with the same name, but Stellar would block such things every efficiently.
What are the Advantages and Disadvantages of Stellar?
Advantages and disadvantages are the part of everything and likewise, there are so many pros and limitations of Stellar as well, although it holds a big name in the market of cryptocurrency, users always find a limitation. Stellar has been always improving its services as per the review of its clients.
- The speed of transactions is very high, the speed is that high that it can make 2000 payments in just one second simultaneously, which shows that if you are making any payment then it will hardly take 5 seconds to complete its process. The speed of Stellar has made it one of the biggest cross-border payment protocols.
- The transaction cost of the Stellar is way too low, some people get afraid for using some kind of application because they charge the tax very high and it is not affordable sometimes. But if you want to be a part of Stellar cryptocurrency, then you can register today without any sort of fear.
- Stellar is a non-profitable company, this is also a big reason that why it does not charge high tax as compared to Ripple.
- Stellar has some amazing features which you will not find in any of the other application of cryptocurrency.
- It can also incorporate the elements, for example, blockchain smart contracts; it helps in enhancing the functionality of the payment protocol.
- The validators’ numbers of Stellar is not that high, it is decentralized.
- The amount of money you deposit would be secure in a Stellar account.
- The company has partnerships and also it always collaborates with big companies. For example, IBM.
- The company is reliable and can be trusted as per its services.
- Your account would be safe forever in case you lose your active device and other identity verification proofs.
- The competition of the Stellar company is way too high in the market of cryptocurrency which makes it difficult to be consistent on the ground. Ripple is one of its largest competitors because the founder of both the company is the same.
- This is a big limitation that you should have a minimum of 20 XLM coins in your wallet to access it. It becomes difficult for some users when they don’t want to invest all of once on such an application for their circumstances and reasons.
Apart from these, Stellar is overall a very good and easy platform to understand the market of cryptocurrency. You should know about the details of XLM before starting with the company and you can gain the knowledge of same by getting in touch with one of the team members of Stellar.