What is Stellar and its coin, XLM?
XLM, or also known as Lumens, is a digital asset that runs on the Stellar blockchain network. The XLM coin is used as a fee for transferring funds from different currencies to anyone in the world through the internet.
The Stellar blockchain network is a decentralized independent network. Users are like owners of the network, which is a decentralized operation by focusing on the convenience and speed of transactions through blockchain technology.
The Starting Point of XLM
XLM and the Stellar Network were created in 2014 by former Ripple creator, Jed McCaleb and Joyce Kim as a non-profit organization developed by the Stellar Development Foundation with the objective of replacing traditional financial systems like banks. This also involves allowing users to transfer value to anywhere in the world quickly, conveniently, without intermediaries, and with a cheap fee.
Pros of XLM
XLM’s strong point is its transaction speed. Transactions can be completed within only 5 seconds. Users can transfer value to their families from long distances easily, quickly, without intermediaries, and while also reducing the complex process of intermediary transactions.
Transfers with Lumen or XLM only start at 0.00001 XLM, making international transactions extremely cheap in comparison to transactions with intermediaries.
Additionally, the Stellar Network has its own consensus mechanism; the Stellar Consensus Protocol, which validates data with the help of over 100 auditors worldwide, wherein users can also become auditors as well.
XLM, or Lumen, is considered as one of the earliest cryptocurrencies. Even before the world's second largest network, Ethereum, and has the 20th highest total market capitalization in the world, according to Coinmarketcap as of August 6, 2021.
XLM is one of the earliest coins in the crypto industry and is able to maintain the world's top 20 rank in terms of overall market capitalization. XLM focuses on value-transferring through its blockchain network without relying on intermediaries. This results in reducing fees, effectively cutting out the complex steps.