Among the variety of cryptocurrencies available on the market, one that stands out and draws attention due to its peculiar ownership is Stellar.
Stellar is a network launched in 2014 and it is based on open-source payments while it has its own currencies. The network is created so clients can make trade, exchange, and buy all forms of money either virtual or physical. At its core, Stellar relies on a single network that can keep the system together. When talking about its peculiarity, Stellar is a public network, and therefore unlike other currencies, it does not has typical ownership.
How is Stellar made?
Stellar is guided by the Stellar Development Foundation, which helps in the maintenance of codebase and basic engineering but without owners or shareholders in order to maintain the spirit of equality Stellar seeks to achieve.
Essentially the whole process of Stellar being live and functional relies on the individual users who build the network themselves. They create transactions, transform all types of traditional currencies without any complications in permissions or applications needed. Stellar is open for all individuals and companies, so they form the network and fill up the possible gaps on the market if necessary. This is mainly done by issuing new digital tokens for any currency without joining a proprietary association.
Stellar uses its native digital currency called the Lumen (traded under the symbol XLM) that requires minimal accounts and transactions. It has been created by Jed McCaleb the mastermind behind Ripple. Unlike in his past projects, Lumen relies on the bottom-up approach.
Currently, there are approximately 22.5 billion coins in circulation while the maximum supply is estimated at 50 billion. The majority of the coins that are not commercial yet and not prone to individual users are held by the foundation to help them develop the network.
The rule states that every year, there is 1% of Lumen released on the market. Even though Lumen as the currency used by the Stellar network had its devaluation in 2020, it is estimated that Lumen is one of the best performing altcoins available for commercial use.
How Stellar works?
The network Stellar creates is based on the numerous servers that are using Stellar Core software and it is owned by numerous individuals and corporations. Besides this, there are no particular preferences on the type of currency that passes through the network. The network is a blockchain-based distribution ledger that connects all possible important stakeholders such as banks, payment systems, and individuals.
On the local level, they have a copy of the blockchain and communicates that are synced with Stellar core software. Transactions that are made get recorded using the Stellar consensus protocol.
The Stellar Network bases its transactions by seeing if the straight currency pair swap is available. In essence, you can transfer dollars to the tokens and create an equal 1:1 relationship using both digital and traditional money.
This is immensely important since now anyone can make transactions and own any currency without the obligation to use a particular state`s bank account. In essence, this creates equality and makes the Stellar network user-friendly.
Also, the transactions do not necessarily have to be performed in the same currency, so you can hold credit in US dollars but receive British pound sterling. If the straight transfer in currencies has not been available, the system can see if there is a demand for the initial currency from a Lumens holder, convert it to Lumen, and then again to the desired currency. This is done using Anchors that belong to the same network making the transaction as fast as possible.
The transactions are processed within five seconds and the fee Stellar charges is extremely low. They are made so that consensus protocol is based on an open-source system and authentication process is confined in trustworthy nodes unlike in the case of other cryptocurrencies where the whole network is set for use.
Even though part of the ownership is in the hands of organizations, Stellar is still primarily in the service of individuals and makes a digital economy more inclusive. Additionally, the main idea of Stellar is to become accessible to developing economies.
How to buy Lumen?
As we indicated Lumen is easily accessible via the Stellar network. Unlike other cryptocurrencies where most of them are obtained using the process of mining, Lumen is not mined but released by the network. One of the most common ways to obtain is to purchase tokens on major cryptocurrency exchanges.
The best way to keep your Lumen safe and easily accessible for transactions is to use cryptocurrency wallets. These wallets are created as safe storage for any type of cryptocurrency and therefore also Lumen. Currently, on the market, you can find several types of wallets that can store your assets. When it comes to Lumen you can use any form of wallet such as Keybas or Lobstr, and even online wallets such as Coinbase.
Stellar and its cryptocurrency Lumen, like most of its kind, carry some important features that people should consider in case they want to get involved in business and transactions using Lumen.
Primarily, the level of anonymity once you own these assets is the same as in all other cryptocurrencies. Even though your identity is protected by the chain of numbers and symbols to keep also the security levels high, still every transaction you make is stored.
On the other note, any larger use of the Lumen system and Stellar network will require your ID and therefore your identity cannot be fully protected.
Another feature to consider is floods made on purpose by the hackers that induce the market with numerous microtransactions. So far Lumen has been using safety measures that protected the system from this kind of attack, but one should note that so far there were no serious threats to the system.
Stellar and its cryptocurrency Lumen, represent a great addition to digital money transactions. Their idea of equality and accessibility of cryptocurrencies seems to have revolutionized the way transactions have been made, especially in the developing world. There is a lot to look forward to when it comes to the commercialization and development of the Stellar network. In case you want to experience excellence in exchanging your cryptocurrency or physical money for Lumen we suggest you visit N.exchange.
N.exchange will offer you the best conditions, excellent service, express exchange and safe transaction of your assets whenever you desire