Stellar XLM is your financial bridge

Stellar (XLM)

Stellar XLM is a vast platform with open original code. It is based on an available distributed network ‘blockchain’ with its own cryptocurrency. It is called ‘Stellar Lumens’ or simply ‘Lumen’. The name originates from the English word ‘stellar’. The cryptocurrency got its name from the main unit of measurement of flux ‘lumen’. Such a creative approach caused interest among people.

Cryptocurrencies are various and have various functions. Some were created to replace fiducial money. Others help to conduct multi currency operations throughout the world. The main mission of Stellar cryptocurrency is to create financial products and services. They can unite people all over the world including those who don’t have an access to bank service at present time.

The platform has a unique technology. That is why Stellar is used as a ‘bridge’ between different digital coins. It is useful when the direct exchange is impossible. The Stellar platform provides users with an effective payment system. This allows them to transact with immediate confirmation and almost zero fees. The platform also lets us issue the tokens and organize fundraising.

Lumen is an inflation cryptocurrency without limit for the largest coin supply. Nowadays the total amount of lumens increases 104 million XLM. The cryptocurrency is popular among businessmen. Its main sponsor is the American company ‘Stripe’.

Stellar XLM timeline

The background of the platform begins in 2014. That time Jed Caleb (a developer) and Joyce Kim (a lawyer) launched the ‘Secret Bitcoin Project’. They tested software versions for their platform. By that time Jed already had large experience in the field of cryptocurrency.

Since 2012, Jed is co-founder of the Ripple (XPR) clearing platform. He often criticized this platform because it is centralized and its code is hidden. He considered it a greedy corporation striving to get as much money as possible. This inspired Jed to create another platform that won’t have the same downfalls.

From the very beginning, Stellar worked with Stripe too. Then, its general director found another non-commercial organization. Its main aim was to develop the Stellar XLM platform. Their plan was access to financial services in the regions with bad economics. 25 million tokens were granted for people whom the bank services are inaccessible. Such human attitude and principles led to fantastic results.

Block-chain engineers liked the idea of uniting banks, payment systems, and private bodies. To unite them in one platform was reasonable. So, the cryptocurrency had its own protocol. It is called the ‘Stellar Consensus Protocol’ (SCP). Developers made it accessible to everyone. David Mazieres, a professor at Stanford University, participated in developing SCP.

The new original code was published in April of 2015. The Stellar network was updated the same year in November. This fixed the problem and also increased the productive capacity.

The peculiarities of Stellar XLM

  • The network is capable of handling payments in a fixed currency.
  • Stellar cryptocurrency is not based on the Proof of Work algorithm. It means the lack of miners.
  • XLM is one of the cheapest cryptocurrencies. Operation fee is 0, 00001 XLM.
  • On average, the transaction is conducted for 3-5 seconds. The platform can operate more than one thousand transactions per second.
  • The developers always carry out works by extra payment channels. It will make the ‘stellar’ network much bigger.
  • All transactions of the platform are open.
  • Every user of the network can independently choose the node to work with.
  • Opportunity to make cross-currency transfers.
  • Smart contracts option.
  • More than 200 trade areas work with Stellar XLM.
  • Stellar is compatible with other representatives of the cryptocurrency market.
  • Lumen is used in almost all types of cashless payments.
  • Even if some servers stop working, the whole system will not suffer. Plenty of interchangeable servers maintain its reliable work.

Still, the platform has some disadvantages as well:

  • The network can freeze up in any suspicion of a hacker attack.
  • Falling the cost of cryptocurrency – annual inflation of Stellar XLM is 1%.
  • Low yield of node maintenance.
  • Restricted possibilities for decentralized applications;

Digital background of the platform

Lumen is available at many cryptocurrency wallets. They are available for different devices and operational systems. Most of XLM wallets have set-in integration with Stellar decentralized exchange.

Stellar XLM schema


The main portfolio of systems for XLM is Foxlet Stellar Wallet. There are versions for Windows, macOS and Linux. BlockEQ is an excellent option. It is supported both by PC and phones. Both digital purses are able to work with Stellar tokens. It is comfortable, isn’t it?

Lobstr Wallet is also a popular mobile wallet for Stellar XLM. Users of Android and Apple devices can easily use it. Ledger Wallets Nano S, Blue, and Trezor also support Stellar XLM.

Lumens are popular. They are regarded at about 40 cryptocurrency exchange stocks. About 30% of total sales occur at Binance together with bitcoins. A considerable percent of total volume comes from South Korea on the Upbit fund market. XLM is also available at crypto markets such as Kraken, OKEx, Bitfinex, and Poloniex.

How Stellar achieved recognition

No one large bank and central bank arranged on the partnership with the platform yet. Yet, in 2017 the situation changed. Lots of payment systems did not want to stay behind. Ways to transfer money were in their shortlist of priorities. They lacked suitable channels for this. They all wished to work with the Stellar Foundation.

For instance, Tempo, the French service. Stellar XLM could help them to make a financial channel with Philippine It means that all Filipinos in Europe can help financially to their families. They can send money just with a name and phone number. No need to wait long, 3-5 minutes later the money will be transferred already in peso.

A significant step to universal recognition is the partnership with IBM. This technological giant corporation uses wanted to have more profitable financial operations. The Stellar platform makes them cheaper and quicker. IBM also wants to have Stellar XLM as a block-chain for multicurrency money transfers. For instance, a builder from Samoa can make a contract with the customer from Indonesia. Before it was just impossible.

IBM is fully satisfied with the internal Stellar XLM currency. IBM considers lumens as a ‘fuel’ or ‘intermediary asset’ to carry out their transactions. Also, IBM promotes XLM among its clients. They convince financial companies in the success of digital assets for a business. And Stellar’s block-chain is an excellent option.

The list of Stellar’s partners constantly increases. Even Islamic countries recognized that Stellar’s protocol meets the Islamic principles. This allows the Stellar platform to broaden their horizons. So, they provide their services to the countries of the Persian Gulf and South-East Asia.

There are some experts that compare Stellar XLM with Ripple. Yet, such a comparison is inappropriate. They have too different directions and principles. Stellar has a non-commercial form. This makes it impossible to gain profit from its activity or cryptocurrency growth.

To transfer money in any currency cheaply and quickly is a high-demand service. In this case, Stellar XLM is beyond the competition. Maybe, soon all central banks will launch cryptocurrencies. So, Stellar XLM has all chances to become the ‘environment’ of these cryptocurrencies.

About Evans Kwesi 7 Articles
Evans is a Kape Town-based tech journalist and crypto enthusiast covering how technology is affecting business. He enjoys writing about Altcoins, blockchain technology, stock market news, fintech and financial news. Evans also writes about tech startups and new technologies.