About stellar lumens is a distributed ledger-based on the blockchain that aims to link individuals and financial institutions worldwide. Stellar’s mission is to make global payments more accessible, affordable, and simple to use.
The Stellar Development Foundation is building a network called Stellar. Stellar lumens, or just lumens, are the network’s currency. XLM is the abbreviation for Stellar luminescence.
About Stellar Lumens (XLM)?
The Stellar Development Foundation, a non-profit founded by Ripple co-founder Jed McCaleb in 2014, has produced coins known as Stellar Lumens (XLM). Compared to Ripple, Stellar appears to have much more in common with the latter than it does with the former. Two “unique codes,” in McCaleb’s words. Even though the technology is different, and Stellar claims to have made major fixes to Ripple’s flaws, the major difference between them is their vision for cryptocurrency’s future.
As Ripple (XRP), formerly one of the most popular cryptocurrencies, struggles mightily, Stellar Lumens could soon become a highly valuable alternative coin. U.S. authorities recently announced charges against Ripple’s founders, alleging they sold over $1.5 billion in unregistered securities. I believe that XLM will soon overtake XRP and seize its market share from this company.
Stellar’s slogan: “Finance with a mission”
In the words of Stellar, they are “finance with a purpose.” Stellar’s mission is to make financial services available to everyone, no matter where they live or how much money they have. Anyone can edit or contribute to the codebase because it is open source, and the concept behind it is inclusive. Ripple is a for-profit company. Stellar seeks to cover its operational costs by setting aside 5% of the total lumen supply for its use and accepting charitable donations. Stellar, in contrast to Ripple, is aimed at the general public.
Collaboration and teamwork
Their assembled team bolsters Stellar’s ability to steer the network they are creating. For the Stellar Build Project, they provide incentives of up to USD 2 million in lumens to developer partners. The two companies recently announced the Hyper ledger initiative, in which IBM and Stellar have teamed up to solve the challenge of global cross-border payments.
How is Stellar different?
Unlike Ripple, about stellar lumens can perform ICOs on its network, which is an important difference. New cryptocurrency projects can use the Stellar blockchain to issue their token. New ICOs in the cryptocurrency market so far have used ERC20 tokens.
Because of Ethereum’s growing popularity and present scaling mechanisms, the past year saw large backlogs of transactions with poor transaction speeds and fluctuating fees. Some crypto businesses have used Stellar as a platform to launch ICOs since it offers faster transactions and lower prices than Ethereum.
In contrast to Ripple’s criticism, Stellar’s decentralized and altruistic aim has gained positive attention. Both are pursuing quite different goals, but many believe there is room in the global financial ecosystem.