Stellar Lumens (XLM) and Technology from A to Z

(XLM) is a
payment system using blockchain-based, distributed ledger technology that aims to connect people and financial institutions around the world and reduce the cost and time of cross-border asset transfers.

In 2014, stellar was founded by Jed McCaleb, who is also one of the founders of the Ripple company , which was separated from the Ripple 

foundation as a fork. Although it comes from the same foundation as Ripple, it has become completely unique with the code changes made. The average processing time of two to five seconds provides a great advantage. Additionally, many ICOs are leaving the ethereum base and switching to stellar because of its speed. One of the differences from Ripple is that it works with decentralized servers and a distributed ledger system. It is also used to create smart contracts and new tokens in its distributed system. 

Systematically, as in ripple, a small part of the networks in stelae is used for verification . This is the most important factor that increases the processing speed. 

The Stellar Development Foundation has approximately 90 million XLM , which is equivalent to more than 85% of the total supply.

Is Stellar Lumens Mineable?

Mining is out of the question as all existing stellar was mined before the network went live.

The Importance of Stellar Lumens (XLM)

A large part of the world’s population remains unbanked. At this point,  Stellar strives to provide universal access and participation in the global economy. Ripple is a for-profit business, while stellar aims to accept donations as well as use 5% of the total XLM available for its own use to cover operational costs. Ripple is targeting the banking industry, while stellar is targeting individual users.

Stellar has also partnered with IBM as part of their Hyperledger project, where they will try to solve the problem of cross-border payments globally together.

How Does Stellar Lumens (XLM) Work?

Banks directly provide the necessary intermediary services to exchange or send one currency for another by cooperating with ripple.
They act as a bridge between different currencies and the stellar network. All money transactions on the network take place in the form of issued loans. For example, a user who wants to make a transfer can receive XLM in USD, while the person to whom he makes the transfer can keep it as TRY.

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