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What is Stellar?

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Although Bitcoin is in the headlines of the world media many times, there are other digital currencies that have given very good returns to their investors and many developers have become interested in these currencies. Stellar currency is one of these currencies.

This digital currency has grown more than 41900% with a very good price increase in 2017 and was among the currencies with high returns. However, in 2018, due to the downward trend in the digital currency market, it was accompanied by a decline.

Stellar is a currency similar to Ripple that was produced in 2014. In fact, Stellar can be considered a fork of Ripple.

The tokens of this digital currency are called XLM for short.

Stellar has been the hottest digital currency of 2018. And it is among the eighth digital currency in the world.

On the official site, Stellar presents itself as an open source and distributed payment infrastructure. Their protocol provides the possibility of exchange with traditional currencies and with automatic conversion between people around the world using cross-border payments. The Stellar network is decentralized, but like Ripple and unlike Bitcoin, it does not operate on the blockchain. Stellar network currency or Lumen cannot be mined and a certain amount is created by the company.


How does Stellar work?


Aside from being used as a low-fee, high-speed cryptocurrency, Stellar is more than just a cryptocurrency. Organizations such as banks and financial systems, which are called anchors in the network, check the communication in the network. Anchors are trusted entities that play the role of communication bridges in the Stellar network.

For example, you are in America and your friend is in France and he asks you to pay 100 euros. You can use the Stellar network and send the equivalent of dollars to your friend. This money will be automatically converted into Euros in the French bank and will reach your friend.

Therefore, Stellar can be exchanged in Volts like other digital currencies, or its network can be used for other currency payments.


What is Lumen?


Lumen is the name of the currency used in the Stellar network, whose abbreviated unit is XLM.

Lumen is the common currency of the Stellar network. At first, the digital currency of this system was called Stellar. In 2015, to avoid confusing users, they named the digital currency Lumen instead of Stellar; It means that the transfer and payment network should not be mistaken.


How does Stellar Lumens work?


Like most other digital currencies, Stellar Lumens features blockchain technology.

The Stellar network runs on decentralized web servers supported by an international consortium.

These servers support ledgers that track network information and transactions.

In practice, the Stellarluminance protocol, like PayPal, is more integrated and flexible. To start using Stellar, you need to send cash to the network.

Stellar lumen price and factors affecting it

The price of Stellar, especially in the last few months, has grown dramatically. A year ago, the price of each unit of this currency was 0.002 dollars, and now, as we are writing this article, it is about 0.7 dollars. If you bought $1,000 Stellar last year, today you would have about $350,000 worth of capital, which is very likely to increase its price due to network applications. Recently, an unconfirmed news about the hosting of ICOs on the Stellar network has been published, which, if true, can increase the price of this currency several times. It is obvious that Stellar is a practical network and it can continue to grow well with the expansion of the network and its adoption. Fast transactions and low fees are the advantages of this network.

One of the risks of investing in this currency is the concentration of the company and the news and events of the company are highly effective in its price.


What is the difference between Ripple and Stellar?


Erzastellar is very similar to the Ripple system in terms of its structure and execution protocol, but it has minor differences with Ripple, and these differences are increasing, including:

Stellar is more public than Ripple, which has more enterprise use.

Ripple is more centralized than Stellar. Membership in the Ripple network and approval of transactions must be approved by the Ripple Foundation, but membership in Stellar is free.

Stellar; In fact, it is a fork of Ripple, but their differences are increasing day by day.

Stellar; It can be an intermediary for national currencies.

Stellar; is a non-profit foundation that claims to fight poverty, but Ripple is a for-profit company.

The transaction time in Ripple is 4 seconds, but in Stellar it is 2-5 seconds.


What entities use the Stellar blockchain?


Stellar entered the market in October 2017 after announcing a partnership with IBM. This partnership created a monetary network among the countries of the South Pacific. This project aims to make at least 60% of cross-border payments among the countries of this region. These countries include Australia, Fiji and Tonga. It provides connections between small, non-profit businesses and banking institutions to expedite business transactions. For example, a farmer in one region can communicate with a buyer in another region and perform the desired transaction to transfer money.

In 2016, the famous technology consulting company Deloitte announced a collaboration with Stellar to develop a payment program. At a 2017 conference, McCaleb announced that 30 banks were using Stellar for their cross-border transfers.

What are the disadvantages of Stellar?


The drawback they state for Stellar is that under a decentralized network

Does not work. Rather, the Stellar network is a quasi-centralized network. Lumen coins are in the possession of the Stellar management team and will be injected into the network in the future according to the schedule. This makes the governance of the management team very influential in the future of Stellar. In fact, Stellar’s future depends on the decisions of this team and Makaleb himself. However, in terms of security, the Stellar network has not had any problems so far and has a good level of security.


  Is Stellar safe?


Stellar has proven its security over many years. The small fees charged to users are used to prevent attacks on Stellar’s servers. Stellar, on the other hand, is secure enough that it is currently used as part of the IBM Bank blockchain.

Introducing reliable Stellar wallets


     Stellar desktop wallet (official wallet)


This is the official client software of Stellar, and it is completely open source. In this wallet you can store, send or receive Stellar. This wallet can be used on Windows, Mac and Linux operating systems. Private keys and all wallet contents are stored on your desktop, so try to back it up once in a while.


Where to buy Stellar?


There are many cryptocurrency exchanges that support XLM. Their difference is in the amount of fees, authentication procedures and payment methods. Here, the introduction of the Kraken exchange for buying Stellar is discussed and its advantages and disadvantages are mentioned.

Karaken is one of the oldest digital currency exchanges that started its work in 2011. To buy Stellar from this exchange with fiat money, you must be authenticated. But to convert other digital currencies to Stellar, only basic specifications are required. It is also possible to connect an international bank account to this exchange, and for that you need to confirm your address in one of the countries of Canada, America, Japan or Europe. The transaction fee in this exchange depends on the coin and its purchase method. For example, a commission of between 0.02 and 0.26% is charged for buying Stellar with US dollars. The platform of this exchange is also simple and usable for newcomers.

Stellar prediction of the future


To predict Stellar, one must have a proper understanding of the Stellar network and its price changes over time. He was also not oblivious to the decisions and events related to it.

The price of Stellar in April 2017 was about one cent. It rose to about 4 cents in two months, but it still had no value. Along with the growth of other coins, Stellar also grew several tens of times at the end of the same year and reached 73 cents. After that, it fell along with other currencies and now it is moving in a uniform path with little changes and its price is around 24 cents. Many experts believe that now is the time to buy Stellar and see its future bright.