It is a pity that most of the people interested in cryptocurrencies join this world more because of the crematistic interest behind them than for the projects themselves, that is why we perceive so many cases of failures among people who have decided to invest their money in altcoins with more popularity than future, without considering certain criteria behind the development as the team responsible for the technology, the niche it expects to cover, its expectations and other characteristics that allow us to define where these currencies are going beyond the graphics and their red or green numbers.
Therefore, following the series of investigations I have initiated around certain altcoins, some well known and others not so well known, I chose to make the profile of a project of which little is said but is among the top 50 of the major cryptocurrencies in the world, I mean Stellar-Lumens (XLM), which is presented as a decentralized protocol, dedicated to offering users the ability to send money to anyone in the world instantly with one of the lowest commissions in the cryptosphere.
To avoid confusion it is necessary to note certain forms of nomenclature for this project, for example, the system is called Stellar, Stellar Development Foundation (SDF) is the name of the non-profit foundation responsible for its development and finally, when we refer to Lumens we are talking about the token used by the Stellar technology, whose abbreviation in the markets is XLM. The leader behind the project is Jed McCaleb who also participated as one of the main responsible for Ripple. Stellar began its journey in 2014 when its creators launched 100 billion XLM to the world as part of their investor attraction process.
According to its developers, Stellar seeks to facilitate the circulation of money within a decentralized environment, both for sending and receiving funds, applying its technology so that this purpose is fast and at the same time generates very low commissions in cost. To do this, the system relies on a decentralized network of servers, which use a distributed ledger protocol that has the ability to update all nodes every 2 to 5 seconds.
The Stellar Consensus Protocol (SCP) does not rely on a network of miners to validate transactions as is the case with Bitcoin, for such function, it resorts to an algorithm called Federated Byzantine Agreement (FBA) which is responsible for the processes in the system to occur with its particular speed. For the developers of Stellas Lumens the speed of transactions must be the basis of their project, for this reason they run their own nodes through multiple servers and the use of a ledger for the verification of each transaction generated within Stellar. XLM is an inflationary coin, i.e., the 100 billion that were mined will be joined by 1% more each year.
Basically Stellar aims to become a kind of bridge between fiat money and cryptocurrencies. To understand how it works, we basically send funds or balances in Lumens from euros or dollars that are already validated in our wallet to a relative or friend somewhere in the world, the system will automatically convert the currency to the local fiat version (very similar to the way Paypal works) taking as a reference the lowest exchange rate. The money will arrive to the wallet in the estimated amount immediately to be withdrawn when the recipient so decides. Likewise, the platform acts as a currency or cryptocurrency exchange, determining a specific exchange rate according to the operations predetermined by the orders issued by the users.
Considering the above, Stellar directs its activities to become the main platform for access to financial services to the population segregated by the international banking world, so that people can benefit from fast and low-cost transactions or money movements quickly and at low cost using highly scalable technology.
It is necessary to remember that everything mentioned in this publication is part of a research process for informational purposes, in no way should it be considered as a kind of advice or recommendation from me to promote investment in Stellar. If you are interested in this project take a moment to verify what is mentioned in this article and support your intention to invest based on your own conscious decision.
