Stellar (XLM) is a decentralized peer-to-peer blockchain network that Stellar.org, or Stellar Development Foundation, founded. It has its own native cryptocurrency, known as Lumen, traded under the symbol XLM.
Moreover, the main objective behind the development of this project is to connect banks’ financial systems and urge people to take advantage of cross-border, low-cost, and cross-asset financial transactions. Let’s check out more about Stellar tokenomics and other nuances.
What is Stellar and How Does It Work?
Stellar is a layer-1 open-source, decentralized, transparent, and reliable global exchange network that connects financial institutions, making it easier to move money quickly and reliably across borders. It was officially launched in 2015.
Furthermore, it is designed in a way to link people, financial institutes, and banks to send, trade, and create different types of cryptocurrencies in a fast, decentralized, transparent, and affordable way.
Moreover, the network works on distributed ledger technology, a community-owned and open-source network. Stellar crypto asset allow users to overcome high fees, cross-border transactions, and hectic, slow transactions.
This network operates similarly to other advanced technologies, like Bitcoin. However, the Stellar Consensus Protocol distinguishes it from other technologies. It is a safe and secure network. It connects different interconnected nodes or servers inside the Stellar network. The users can create a Stellar code verification node by using the Stellar code, which is a vital part of the Stellar network. Furthermore, it verifies each transaction by leveraging the Stellar Consensus Protocol.
Highlighting Features of Stellar
Stellar has become popular because of its unique features that make this protocol different from other networks.
Fast and Affordable
According to the Stellar network, the network can proceed 1000 t/s at a scale average ledge time of 4-5 seconds and low transaction fees, making it suitable for microtransactions and cross-border payments. In addition, the network has successfully performed over 13 billion processes since 2015.
It costs only 0.00001 XLM for each transaction, which is equal to a dollar. This makes it affordable for developers.
Supports Multiple Currencies
The Stellar Network uses Lumens (XLM) to make quick and affordable transactions between different currencies. Imagine you want to send money in a currency that’s not commonly traded.
Stellar allows you to send it using Lumens, and the recipient can receive the equivalent amount in their preferred currency. This is useful for transactions between less common currencies, making it easier and more efficient.
Create your Own Currency
The users on XLM network can create their own token or currency and distribute it on a big scale. Thus, you can easily create, trade, and send these digital presentations in any form, such as US dollar, real estate, Argentine pesos, and gold.
Stellar Token: Lumen (XLM)
Stellar token has lots of usage in the Stellar network. It is a built-in coin in this network that helps users pay transaction fees on XLM.
Moreover, Lumens also protects the network from unwanted and invulnerable flood attacks by creating micro-transactions, making it too expensive for hackers to make a profit. In this way, the user’s funds are safe, and the network is protected from threats.
Additionally, Stellar requires the users to have at least one token to make themselves available on the platform. Because of XLM, all the transactions performed on the network are seamless.
Lumen (XLM) Tokenomics
At the time of writing, XLM is currently trading at the price of $0.12, up by 3847.90%. It has a market cap of $3 billion with a 24-hour trading volume of $76 million. The volume is up by 5.17%.
Furthermore, the token is also expected to go on an unprecedented rally. A recent analyst of XLM predicts that it could rise by 2,922% and reach a new high price of $3.5.
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