- 1 What is Stellar Lumens (XLM)?
- 2 Who created Stellar Lumens?
- 3 What is the difference between Stellar Lumens (XLM) and Ripple (XRP)?
- 4 How to buy Stellar (XLM)?
- 5 Can Stellar Lumens be mined? How to mine Stellar Lumens (XLM)?
- 6 How to store Stellar Lumens? What is the best wallet for Stellar Lumens (XLM)?
What is Stellar Lumens (XLM)?
The Stellar network is a decentralized network that connects payment systems, banks and people. The platform is designed to accept any currency.
Transfer of funds through the Stellar network makes use of anchors. They are entities trusted by senders to hold deposits and issue credits for the deposits in the Stellar network
It is an open source protocol used for exchanging money. The Stellar Lumens (XLM) is much affordable, and you can easily buy it. The network can support more than a thousand transactions per second and has a 2-5 second confirmation time.
How does Stellar Lumens work?
Stellar Lumens works through a decentralized network that contains nodes that operate independently. Therefore, the Stellar system does not rely on any entity. This ensures that the Stellar network continues working correctly even if some servers fail due to the numerous servers contained in the system.
The Stellar network also maintains a list of all the transactions and balances belonging to all accounts in the network. The decentralized network allows the ledgers to be spread as extensively as possible. They authenticate the ledger through consensus.
Instead of Proof of Work, Stellar uses SFP. The Stellar Consensus Protocol (SCP) provides maximum security against malicious parties and participants. The entire consensus process happens between every 2-5 seconds.
Who created Stellar Lumens?
Stellar Lumens was founded by Jed McCaleb and Joyce Kim in 2014.
It was initially in the Ripple protocol, but after a few changes were made, the network slit creating the Stellar core. The Stellar Development Foundation was formed and a new consensus algorithm released. The primary aim of this platform was to connect banks, payment systems and people.
After the release of the networks whitepaper in April 2015, it went live six months later. Formerly, Stellar network assets were referred to as ‘Stellars.’ Following the upgrade in 2015, the name changed to Lumens (XLM). XLM links fiat currencies and allows an almost instant exchange. It is backed by a strong team of entrepreneurs, venture capitalists, and developers.
What is the difference between Stellar Lumens (XLM) and Ripple (XRP)?
Ripple is a for-profit firm that creates payments networks with big financial institutions while Stellar Lumens is a non-profit technology that seeks to promote financial inclusion and access. XRP is more centralized than XLM in that Steller split from Ripple in 2014.
Ripple determines who will validate their transactions while in Stellar anyone can join, view and access the open ledgers.
Given that Ripple and Stellar serve entirely different markets and use different technologies, you cannot say which is superior. The appropriateness of each depends on the context.
How to buy Stellar (XLM)?
Follow the following steps to buy XLM.
- Buy Ethereum or Bitcoin through the exchanges available (Coinbase or peer to peer networks such as Local Bitcoins for Bitcoins)
- Sign into Binance and create an account
- Withdraw your ETH or BTC from the exchanges you bought from to your Binance account
- Click on the ‘Exchange’ tab then ‘Basic’ and search for ETH/XLM or BTC/XLM then proceed
- After buying the XLM search for the digital wallet that supports XLM, transfer the coins to the selected wallet
XLM can be bought on various exchanges. The most popular is Kraken, Bittrex, and Poloniex. Signing up at Stellar is easy hence the XLM is made accessible to millions of people. After buying XLM, there are many wallets that you can use to store your coins.
The main advantage of using wallets to keep your XLM is that you are not required to provide your personal information or address to start using them.
Can Stellar Lumens be mined? How to mine Stellar Lumens (XLM)?
Stellar Lumens cannot be mined. Their system has the cryptocurrency created during inception, and they verify all their transactions in decentralized servers. 100 billion Stellars were established at the beginning. The distribution of Stellars is only regulated by Stellar Development Foundation.
One can own Stellars through trading with other cryptocurrencies or fiat currencies, receiving Stellars created through inflation through direct voting or buying within the Stellar network. The foundation also has giveaway programs through which you can acquire Stellars. For Stellars created through inflation, there is a 1% annual rate that is intended to account for both the Stellars lost and the economic growth.
How to store Stellar Lumens? What is the best wallet for Stellar Lumens (XLM)?
Stellar Lumens are stored in digital wallets. Digital wallets are virtual wallets where cryptocurrencies are stored and from where you can receive and send the specific altcoins. You cannot buy or sell Stellar Lumens or any other cryptocurrency without a digital wallet.
The most appropriate wallet for XLM is the hot wallet. These wallets are connected to the internet and allow XLM holders to receive and send the coins easily. However, it is essential to use wallets that have encryption and private keys to avoid getting exposed to spammers and hackers.
Some of the wallets provided by the Stellar team for holding XLM include:
- Mobile wallets: Centaurus, Stargazer, and Papaya
- Desktop wallets: Stellar Desktop Client, Stargazer, and Ledger
- Web wallets: Stellar Term, SAZA, Papaya and LuPoEx