In the first place, cryptocurrencies were crafted for substituting the centralized counterpart which is fiat currencies. Over the past few years, people’s trust has increased in centralized assets. Due to this, centralized organizations have come into play for enhancing the existing technology for introducing cryptocurrencies like Stellar. Stellar cryptocurrency puts forward a solution for bridging the gap that lies between the users & financial organizations by employing a decentralized ledger known as the Blockchain.
A disseminated blockchain supported ledger, the Stellar network is also a database facilitating cross-asset value transfer that incorporates payments as well. Lumens (XLM) are Steller’s native digital assets.
One can easily get a hands-on mobile wallet or Bitcoin wallet with the help of a Mobile App Development Company for outshining the competitors.
To be precise, the cryptocurrency here is Lumens (XLM) and the payment network (Stellar Core & Horizon API) is Stellar.
What are the major selling points of Lumens (XLM) & Stellar cryptocurrency?
- Stellar.org operates Stellar cryptocurrency. It was established by Jed McCaleb.
- The stellar network is a community-owned & open-source network that enables cross-asset value transfer.
- The primary focus of Stellar cryptocurrency is to construct economies in those areas of bank loans & remittances that are still external to the range of banking services. Stellar never charges institutions & individuals for using the network.
- The payment startup called Stripe initially put forward funding for the Stellar Network. Donations from popular organizations such as FastForward & BlackRock also came through.
- Stellar cryptocurrency accepts public donations that are tax-deductible for covering operational costs & by employing 5% Lumens that is kept aside primarily for the rationale.
- The stellar network lets you create other tokens as well aside from XLM. For instance, it has the ability to craft tokenized versions of fiat money for value transfers. The only choice of ICOs is also the Stellar network as tokens can easily be exchanged, transferred, and issued.
- Stellar also has the potential of managing exchanges between cryptocurrencies & currencies that are fiat-based.
- Lumens carry low fees. (Every transaction carries a minor fee which is 0.0001Lumes – linked with it).
- The transaction speed of any asset that employs the lumen network is speedy and this gives tough competition to Ripple.
- Stellar guarantees network safety through a decentralized network as it is secured through the Stellar Consensus Protocol.
Therefore, Stellar cryptocurrency & its lumens are cutthroat with other cryptocurrencies as well on several levels. But these are in straightforward competition with Ripple & Ethereum for ICOs for being a robust digital partner for businesses & banks.
☛ How does the Stellar Function?
The functioning of Stellar cryptocurrency is listed as follows:
- Stellar functions similarly to numerous other decentralized payment technologies such as Bitcoin but there is something that separates it from the rest which is consensus protocol.
- The existing Stellar is an outcome of the 2014 fork that crafted SCP or the Stellar Consensus Protocol. Following this, the cryptocurrency became a complete open-source system.
- Within the realm of this protocol, the procedure of transaction authentication remains locked up to a particular set of reliable nodes. It is not left open to the entirety of node networks.
- Every node on the network picks a specific set of reliable nodes & a transaction is measured to be approved. Authentication of the transaction by every node takes place that constitutes a part of the selected group.
- As a result of the short approval cycle, the Stellar network is able to process transactions in a speedy manner. Above all, the transaction costs always remain lower.
- Stellar cryptocurrency facilitates a distributed exchange model that subsequently permits users to disburse payment in a specific currency such as EUR. But they will be able to send the payment even if they hold USD credit. As a result, the network mechanically carries out forex conversion at the best possible rates. The beneficiary can easily withdraw the currency via the partner institutions and the whole thing functions similarly to banks.
What are the strengths of the Stellar Network?
When you think of incorporating a cryptocurrency payment system in your online business such as Stellar cryptocurrency, then you must learn about its merits and strengths.
☛ Distributed Exchange
In the present times, for each and every currency conversion, there is an exchange rate. With this in mind, Stellar cryptocurrency has come into partnership with a multitude of concurrent payment processors for offering decentralized exchange & free over the blockchain.
For instance, when you send money from the States to India, you do not need to pay any extra conversion fee.
☛ Banking the Unbanked
There are numerous cryptocurrencies in the present world that always carry the objective of substituting centralized banks.
But Stellar cryptocurrency is something that functions alongside financial organizations & banks for offering the finest solution for both cross-border & individual transfers.
☛ The Federated Byzantine Algorithm
Stellar gets to enhance a lot of its potential due to this algorithm. This is not the case for other cryptocurrencies. In the present day, the most protected and sheltered consensus mechanism obtainable is the proof of work consensus.
However, this is not practicable for scalability & is highly computationally intensive. Stellar employs the Federated Byzantine algorithm that crafts quorum slices for the whole network. Altogether, the network now doesn’t need to validate a single transaction.
The only portion of the entire network that confirms a transaction is when other parts authenticate other transactions as well. There is no compromise put upon security and simultaneously, it speeds up the transaction confirmation procedure.
How to Purchase & Store Stellar?
Stellar cryptocurrency comes among the top 5 cryptocurrencies. It is accessible on main exchanges like Bitfinex, Binance, Poloniex and Bittrex. Stellar network is paired with ETH, USDT, BTC, LTC exchanges.
However, one can purchase Stellar by employing the local fiat currency also.
Once someone purchases Stellar, they can store it on an exchange wallet. They can also transfer it to local wallets that they have access to. But there is an advice all must follow – the minimum cryptocurrency amount must be stored on the exchange wallet.
Now you can easily offer an edge to your online business with the incorporation of Stellar cryptocurrency.
As you hire a mobile app developer, you with the help of this professional can create your own mobile wallet where you can offer your clients and consumers Stellar as the payment option.
With such innovative and speedy payment options, the eCommerce sales of your website will definitely touch the peak. Not only this but you can send, store, accept or exchange cryptocurrency payments virtually absolutely cost-effectively & safely across the globe in minutes.
Start working with a sound developer for getting started. Connect with us today.