CryptoURANUS Economics: Stellar-[XLM]: Defined in CryptoCurrency


Sunday, August 19, 2018

Stellar-[XLM]: Defined in CryptoCurrency

Stellar-Coin [XLM]:


Stellar is a non-profit payment network based on blockchain which eliminates the need for the bank by giving substitute of any bank institution. It is a distributed blockchain ledger that provides cross-asset transfers in no time along with its robust database system. Its digital asset is Lumens (XLM).



This project is influenced by significantly major names of blockchain industry.

  1. Nicolas Barry - CTO

  2. Bartek Nowotarski- Developer

  3. David Mazières - Chief Scientist

  4. Boris Reznikov - Partnerships

  5. Ella Qiang - Partnerships China



Stellar has presented its own Stellar Consensus Protocol(SCP) which makes no assumptions about attackers. It has surpassed both existing consensus proof-of-stake & proof-of-work algorithms and opened a new door to modest computing & finances. By the use of SCP barriers to enter and open financial system is lessened.


  1. A very little fee of any transaction which is about 0.00001 XLM ($0. 000005).

  2. Instant transaction within 0-5 seconds.

  3. A non-profit organization, community owned.

  4. Big partners like IBM and DELOITTE.


  1. It is a pre-mined coin.

  2. A limited number of XLM are available.

  3. XLM lower price.

What is Stellar Lumens:

Stellar Lumens is a Ripple-based cryptocurrency (created in 2014) that was designed for quick, extremely inexpensive transactions.

It’s a trustless system that gives users the ability to send money across countries and currencies inexpensively and instantly.

Like OmiseGo, Stellar Lumens aims to provide the whole world with inexpensive, decentralized financial services.

Every user of the Stellar Lumens network will benefit from this, but users living in poverty-stricken and underbanked regions will benefit the most.

The fact that Stellar is open source and geared toward developers also supports their mission as a sort of “people’s coin”.

Stellar Lumens Value, Market Cap and Volume:

[September-03-2018@11:21]: There are over 4.31 billion XLM tokens currently in circulation.

There is a total coin surplus and distributed at: 103,432,382,849 XLM coins. 

There is currently privately owned coins at: 18,431,982,740 XLM coins that 

The Stellar XLM coins can ever be mined to set value of 103,432,382,849 and no greater than.

This may point toward some difficulty in raising the value of the individual tokens.

Generally, coins with lower supply caps have an easier time gaining in value. However, if Stellar can manage to seat itself as the most usable coin for its purpose, the large supply of coins may not be such a hinderance.

The fact that Stellar is taking steps to form a good relationship with the developers’ community is a good sign that it is well-positioned to be adopted for wider use as a currency for everyday transactions.

For the first three years of its life, Stellar Lumens hovered between $0.02 and $0.04.

Then, in May of this year, it saw a sharp increase–at its height, a single XLM token was worth just over $0.06.

It has since fallen to around $0.02, but is likely to keep growing.

How Does Stellar Work?

To use the Stellar Lumens network, you must create an account.

You make a deposit on the network in your country’s currency, which is then credited to your account in the form of XLM tokens.

When you withdraw from Stellar Lumens (using an “anchor”), your money is converted back into your currency (or the currency of whomever you sent your XLM to).

“Anchors” on the Stellar network are entities “that people trust to hold their deposits and issue credits into the Stellar network for those deposits”.

In other words, anchors can be banks, farmers’ coops, or other mobile money operators that can issue credits, accept deposits, and can process withdrawals.
In order to qualify as an anchor, an entity must fit certain legal criteria.

Anchors on the Stellar Lumens “act as a bridge between existing currencies and the Stellar network”.

As a user of Stellar, you can go to a Stellar anchor and withdraw money into the “real world”.

Stellar, Low Fees, Fast Transactions:

Stellar is a “platform that connects banks, payment systems, and people”.

The Stellar platform can be used to send money across the globe in seconds, for literally a fraction of a fraction of a cent (0.00001 XLM).

By comparison, the average Bitcoin transaction fee has recently risen to over $8. The fees are among the lowest in the world of cryptocurrency.

Other than the tiny transaction fee, there are no other fees associated with using Stellar’s network.

The fee serves the purpose of preventing malicious users from “spamming” the network with hundreds or thousands of fake transactions (this is called a “Denial of Service”, or DoS, attack).

Essentially, DoS attacks “clog up” the blockchain, preventing regular users from accessing the network and causing a host of problems, including failed transactions.

In order to be a user of the Stellar transactional network, you must hold a minimum of 20 XLM, which amounts to a little less than $0.30.

This ensures that each of the accounts on the network is authentic, which also prevents fake transactions and DoS attacks from happening.

Micropayments for Humans:

Stellar’s low fees and lightning-fast transaction times make it a good candidate for micropayments, although other coins, like IOTA-coin may be able to achieve this even more efficiently.

However, since IOTA was designed more for m2m (machine-to-machine use), Stellar Lumens may be the best “human-use” equivalent.

Stellar also seems to be committed to serving the interests of its individual users rather than larger corporate entities (banks, for example).

Interestingly, Stellar has made moves to make anchor partnerships in Nigeria.

Many in the technological world view Nigeria as the land of hackers and online scammers, but the Stellar Lumens team sees the untapped potential of the creativity that lays in the Nigerian “cypherpunk” community.

No comments: