• Stellar Crypto is a blockchain technology built for everyday people, not financial institutions. It provides fast and affordable remittance payments.
• XLM is the native digital currency of the Stellar Network and powers network operations and transaction fees.
• This article explores the pros and cons of Stellar Crypto in comparison to Ripple XRP.
What Is Stellar (XLM)?
Stellar (XLM), often called Stellar Lumens, is a decentralized, peer-to-peer payment network established in 2014 by the Stellar Development Foundation. Officially launched in 2015, Stellar’s goal is to bridge the world’s financial systems, creating a seamless protocol for everyone regardless of their social status or position. At its core, Stellar aims to facilitate fast, secure, cost-effective movement of financial resources. It connects individuals, banks and payment processors enabling the creation sending and trading of various types of cryptocurrencies including stablecoins like USDT and USDC . The backbone of this network is the Stellar Lumen token -the network’s native digital currency. Lumens or XLM are used to power network operations and pay transaction fees on the system.
How Does Stellar Crypto Work?
The main target audience for the Stellar Network consists of residents from developing countries providing them access to global economy through quick simple and inexpensive transactions. People worldwide can use this network to transfer fiat currencies as well as execute cross border payments without having to rely on middlemen or expensive intermediaries. Additionally it allows users to convert one cryptocurrency into another quickly with no counterparty risk or exchange rate risk due to its use of distributed ledger technology (DLT).
What Are Stellar Lumens?
Stellar lumens are tokens that allow users to transact on the stellar blockchain platform with low costs and high speed facilitating international payments without having any intermediary/middleman involved in it thus greatly minimizing overhead costs associated with traditional banking services while also reducing time taken for transactions between parties located at different geographical locations from each other. These tokens also serve as an incentive mechanism encouraging developers into building new applications within stellar’s ecosystem while simultaneously providing liquidity needed when exchanging assets across borders without relying upon centralized exchanges such as Coinbase Pro or Kraken which could be subject too much higher volatility risks than those experienced within stellar’s ecosystem due its open source nature where control over funds remains solely with user instead being controlled by any central authority figure(s).
Soroban: Smart Contracts & DeFi On The Steallar Network
Smart contracts are computer protocols that enable two parties -such as banks or customers -to enter into agreements that will be automatically executed when certain conditions are met without requiring any third-party intervention whatsoever thus bringing trustworthiness into their business dealings along with eliminating potential disputes that may arise due lack thereof.. In addition these contracts can be used create „Decentralized Finance“ (DeFi) applications which allow users borrow money from each other directly instead depending upon banks while also allowing them trade assets through automated market makers like Uniswap all powered by underlying smart contract code running atop blockchain networks such as Ethereum’s public chain itself making up what many consider future state finance where everything goes through blockchain based solutions rather than traditional methods involving middlemen who may charge extra fees etc just because they exist somewhere between two parties looking do business together leading higher overall expenses incurred during entire process.. Soroban Protocol which recently launched its mainnet serves prime example how these concepts come life offering decentralized lending staking asset management options all built upon top stellar’s public chain making up prime example what modern day finance could look like near future if more projects were adopt similar philosophies…
Stellar Crypto History
Since its launch in 2015, Stellar has maintained a solid position amongst top 30 digital assets crypto market yet hasn’t enjoyed same level fanfare respect given some other coins such Bitcoin (BTC) , Ethereum (ETH) etc despite being arguably better suited towards facilitating cross border payments due faster speeds lower transaction costs compared afore mentioned projects respectively.. The company behind project was founded Jed McCaleb who previously created Mt Gox -one first major cryptocurrency exchanges back 2011 before later leaving join forces Ripple Labs eventually creating his own brainchild form basis current system today known simply „Stellar“.
Stellar Network vs Ripple XRP
When comparing both networks side side one clear distinction shows itself –Ripple Labs focuses primarily upon financial institutions while stellar seems geared more towards everyday people allowing them access global economy via quick simple cheap transactions.. While both utilize same underlying technology ultimately difference comes down whom primary target audience each respective project though admittedly there have been instances where companies adopted either depending upon needs situation example Western Union reportedly switching using xRapid powered ripple over competitor products part larger effort increase speed efficiency international money transfers around globe…