What is Stellar Lumens (XLM)?

Cryptocurrency

Stellar (XLM) is an open-source blockchain network designed to facilitate global payments. Stellar is specifically developed to provide fast, low-cost cross-border transactions for individuals and financial institutions. The XLM token was created as the network's native asset to pay transaction fees and facilitate value transfers. The usage of XLM aligns with these purposes and goals. Stellar’s unique protocol aims to increase global financial access by merging fiat currencies, crypto assets, and digital tokens onto a single platform. This innovative structure stands out, particularly for its potential to promote financial inclusion.

What is the Stellar Project?

Stellar is a blockchain platform that aims to connect financial systems worldwide and make money transfers faster, more affordable, and accessible. The platform’s native asset, XLM coin, is used to pay transaction fees and facilitate value transfers. Launched in 2014, the project is designed to support seamless cross-border transactions between banks, payment providers, and individuals. Stellar specifically aims to offer an inclusive solution for individuals who lack access to traditional financial infrastructure. Known to be developed as an alternative to XRP, this project stands out in global payment systems due to its fast and low-cost transaction structure.

How Does Stellar Blockchain Work?

The Stellar blockchain uses a unique mechanism called the Stellar Consensus Protocol (SCP) to validate transactions. This protocol provides a decentralized structure to ensure the security of the network and the accuracy of transactions. It accelerates transaction times and minimizes energy consumption without the need for traditional mining mechanisms. Unlike other blockchains, Stellar supports both fiat currencies and crypto assets and allows for the instant conversion of these assets.

Consensus Protocol Summary: Different cryptocurrencies are tracked on different blockchains. The term "blockchain" usually refers to distributed ledger technologies (DLTs) that use various methods to create a permanent record of transactions. This permanent record is then seen as a shared, accurate source of information. How each transaction is validated and added to the shared record or blockchain is defined by consensus protocols, which are the distinguishing feature of different mechanisms. Some common mechanisms include Proof of Work (e.g., Bitcoin), Proof of Stake (e.g., Ethereum 2.0), and newer consensus methods like Proof of Agreement (PoA) used by the Stellar Consensus Protocol (SCP).

How to Buy Stellar Lumens (XLM)?

XLM coin can be bought and sold on many popular cryptocurrency exchanges. First, you need to register with your preferred exchange and complete the identity verification process. Then, by depositing funds into your account, you can check prices such as XLM to TRY or XLM to USD and complete your purchase. XLM chart analyses can be useful in supporting your investment decisions.

Who are the Founders of the Stellar Project and XLM Coin?

The Stellar project was founded by Jed McCaleb, CEO of Stellar Lumens, along with Joyce Kim. Jed McCaleb is also a co-founder of Ripple. However, after parting ways with Ripple, McCaleb launched the Stellar project with the aim of making financial systems more inclusive.

Jed McCaleb is an American programmer, entrepreneur, and philanthropist. He is the founder and CEO of Vast, an aerospace venture, and is also the co-founder and Chief Technology Officer (CTO) of Stellar. Previously, McCaleb was the co-founder and CTO of Ripple until 2013, and he is recognized as one of the pioneers of the blockchain world. According to Forbes, his net worth is $2.4 billion as of March 2023.
Born in Fayetteville, Arkansas, McCaleb attended the University of California, Berkeley, but dropped out before completing his degree. In 2000, he founded MetaMachine Inc. and developed the eDonkey2000 network and application, which at its peak had over 4 million active users. However, the company ceased operations in 2006 due to an agreement with the RIAA.
In 2010, McCaleb transformed a trading site for Magic: The Gathering cards, MtGox, into a Bitcoin exchange. He sold the platform to Mark Karpeles in 2011, and it became a pioneer in Bitcoin trading.
In 2011, McCaleb began developing the Ripple protocol, a system for validating digital currency transactions through consensus among network members rather than mining. After founding Ripple, McCaleb left his active role in 2013.
In 2014, McCaleb established the Stellar Development Foundation and developed the Stellar protocol. Stellar aimed to revolutionize cross-border payments and received $3 million in funding from Stripe. The organization adopted the Stellar Consensus Protocol in 2015, creating an independent technology. Stellar’s network expanded with partnerships such as IBM and projects like Lightyear.io, which offer global payment solutions.
The New York Times recognized McCaleb as one of the pioneers of the blockchain revolution, and he gained attention with projects like Lightyear and InterStellar, formed by the merger of Lightyear and Chain websites.

Stellar (XLM) Coin Mining

XLM coin mining is not performed on the Stellar network. Lumen coins were created and distributed at the very beginning of the network. The total supply was fixed at the outset, and instead of mining, they are distributed among users for transaction and incentive purposes on the network.

Also, see: Cryptocurrency Mining

Stellar (XLM) Coin Statistics

Currently, price information such as XLM to TRY and XLM to USD may vary depending on market conditions. Stellar coin ranks within the top 50 in the cryptocurrency rankings. Additionally, XLM coin has a high daily trading volume. Stellar reviews and analyses generally provide a positive outlook on its long-term potential. Stellar Lumens (XLM) is an open-source blockchain platform designed to integrate financial systems and offer fast, low-cost transactions worldwide. Founded in 2014 by Jed McCaleb and Joyce Kim as an alternative to Ripple, Stellar specifically aims to improve cross-border money transfers and financial access. XLM is the native token of the network, used for paying transaction fees, transferring between accounts, and ensuring the operation of the network.

General Features of Stellar (XLM)

When we examine the general features and use cases of Stellar (XLM), the following five elements stand out:

Fast and Low-Cost Transactions: Transactions on the Stellar network are typically confirmed within 3-5 seconds. Transaction fees are also carried out at minimal costs on the network (such as small amounts like 0.00001 XLM).
Cross-Border Payments: Stellar acts as a bridge between different fiat currencies, making international money transfers fast and cost-effective.
Smart Contracts and Tokenization: Stellar supports smart contracts and the creation of customized digital assets. Developers can create and distribute tokens on the network.
Open-Source and Decentralized Structure: Stellar uses a decentralized consensus protocol and is an open-source platform. This enhances security and transparency.
Stellar Development Foundation (SDF): The Stellar network is managed by the non-profit Stellar Development Foundation, indicating the network’s community-focused, non-commercial structure.

Advantages

Low Transaction Fees: XLM offers more cost-effective transactions compared to banks and other blockchain networks, making it attractive for cross-border payments.
Fast Transactions: Transaction approval times occur in a few seconds, making Stellar suitable for daily payments.
Fiat and Crypto Bridge: Stellar provides an easy transition between fiat currencies and crypto assets. This feature offers a significant advantage for unbanked individuals in regions with limited financial access.
Energy Efficiency: Stellar uses the Stellar Consensus Protocol (SCP) instead of energy-intensive "proof-of-work," making the network environmentally friendly.
Strong Partnerships: Collaborations with major institutions like IBM and MoneyGram increase Stellar's global acceptance and broaden its use cases.

Disadvantages

Decentralization Debate: The decentralized nature of the network may be controversial. While the Stellar Development Foundation guides the network's development, some users believe this increases centralization.
Low Demand Risk: Compared to other major crypto projects, XLM's adoption rate has remained relatively low.
Competition: Similar projects like Ripple (XRP), particularly in terms of partnerships with financial institutions, pose a significant competition to Stellar.
Volatility: Like all cryptocurrencies, XLM is subject to price fluctuations, which can present a risk for investors.

Also, see: Cryptocurrency Tips for Investors

Use Cases of XLM

Micropayments: Stellar allows for fast and inexpensive small payments.
Cross-Border Remittances: Stellar eliminates the need for banks or intermediaries when sending money between different countries.
Tokenization: Users can create and distribute their own tokens on the Stellar network.
Smart Contracts: Stellar can be used for simple smart contract operations.

Stellar (XLM) is a powerful alternative, particularly for applications that require low-cost and fast transactions in financial systems. Its focus on cross-border payments and strong partnerships make it one of the leading projects in this field. However, its competition with other projects and the need for increased adoption rate will be key factors in determining its future growth. Stellar continues to evolve in order to solidify its position in the crypto ecosystem, offering effective solutions for both individuals and institutions.

What is the Total Supply of Stellar (XLM) Coins?

Stellar coin initially started with a total supply of 100 billion tokens. However, the supply was later reduced to approximately 50 billion tokens by community decision. The current total supply is regularly updated on market tracking platforms.

Where Can You Buy Stellar (XLM)?

Stellar Lumens (XLM) is listed on many regulated cryptocurrency exchanges. You can buy XLM using fiat currencies such as TRY or USD on popular crypto exchanges. Among the exchanges where you can buy XLM, CoinTR is one of the first choices. You can quickly open an account on CoinTR, sign up, and conduct buy and sell transactions with XLM/TRY or XLM/USDT pairs.

Moreover, exchanges like CoinTR offer fast and easy cryptocurrency transactions with low fees.

Stellar (XLM) Wallet

To securely store your XLM tokens, you need to create a wallet. According to Stellar coin reviews, hardware wallets (such as Ledger or Trezor) are the safest options. Alternatively, you can also use software wallets that support the Stellar network. These wallets provide an ideal solution for both storing assets and making transactions.

A Stellar Lumens (XLM) wallet is not storage for your assets but a tool that allows you to manage them. These wallets contain the private key and public key needed to conduct Stellar Lumens (XLM) transfers.

XLM wallets allow users to view their balances and transfer XLM to other wallets via the Stellar blockchain. Each Stellar wallet has an address consisting of 26-35 characters. This address is the wallet’s public key and can be shared with others. You can receive Stellar Lumens from other wallets to your wallet via the public key.

To send XLM from a Stellar Lumens wallet to another wallet, you need to use your private key. This operation is secured by blockchain technology and is one of the key features of the Stellar network.

It should be noted that Stellar Lumens wallets do not allow you to directly convert your XLM balance into fiat currencies such as Turkish Lira, US Dollars, or Euros. For this, you need to use a centralized and regulated exchange like CoinTR.

Types of Stellar Lumens Wallets Stellar Lumens wallets are available in three main types according to different use cases:

Desktop Wallets: Installed on your computer and provide local storage.
Paper Wallets: Allow you to store your private and public keys on physical paper.
Web (Online) Wallets: Accessible over the internet and offer convenience.

Stellar Lumens wallets provide users with the opportunity to conduct fast and secure transactions while benefiting from the advantages of Stellar blockchain technology.

Stellar and XLM coins are important projects for the modernization of global financial systems and the wider adoption of cryptocurrencies. Stellar reviews and analyses suggest that the project could be considered a long-term investment tool. To evaluate the potential of XLM coin, you can follow the latest prices and data on our live cryptocurrency market screen.

Risk Reminder: The cryptocurrency market is subject to high risk and price volatility. The value of your investments can fluctuate, and you may lose the amount invested. CoinTR is not responsible for any potential losses. Past performance is not a guarantee of future results. The past price performance of cryptocurrencies does not guarantee future results, and users should only invest in products they are informed about and understand the risks. Before making any investment decisions, you should carefully assess your investment experience, financial situation, investment goals, and risk tolerance, and/or consult an independent financial advisor.

2025-02-24

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