What is Stellar Lumens? – New Zealand’s XLM Cryptocurrency Overview
What are Stellar Lumens (XLM)
Firstly, a bit of clarification on what we’re actually talking about. “Stellar” is an open source network protocol for the exchange of “lumens” (the currency of Stellar). The technology is based on the Ripple protocol, but after years of development has mainly developed its own code.
The best things about Stellar (the network) are:
- speed – an average of 2-5 seconds per transaction
- cross currency payments – Stellar’s platform enables payments to be sent around the world, between any different currencies
- social conscience – Stellar is a non-profit business and sets aside funding for initiatives that promote financial inclusion
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Stellar is a platform that connects banks, payment systems, and people. External companies can integrate with their protocol to move money quickly, reliably and at a very small cost. Lumens are the currency that acts as the fuel for the Stellar network.
What makes Stellar unique?
Stellar was developed as an alternative to what the Ripple network was trying to achieve. Ripple was focussing on the existing financial services industry and signing up companies (banks) as partners. Stellar is aiming more towards the developing world and use from the general population. However; Stellar can claim to have IBM as one of its partners.
The Stellar Development Foundation
In keeping with its objectives, the Stellar team created the Stellar Development Foundation. Through this Foundation an interesting initiative has been implemented aptly named the Stellar Partnership Grant Program. This program offers 2 million USD worth of lumens to an organisation that facilitates the improvement of the global financial landscape and promotes financial inclusion.
What are the main advantages of Stellar Lumens?
Lumens are transacted very quickly across the Stellar network. The speed of a transaction averages from 2 to 5 seconds to complete. This is achieved due to the process in which the transaction is verified. All the Stellar servers are in sync with each other and all have a copy of the Stellar ledger. When a transaction is sent these servers quickly work to verify and come to consensus (known as the Stellar Consensus Protocol) prior to delivering the lumens to the destination address. Due to having this protocol Stellar doesn’t require miners like bitcoin, giving it an advantage in speed.
Fun fact: Stellar Lumens was co-founded by the original owner (Jed McCaleb) of the first ever bitcoin exchange; Mt Gox.
Buy and Sell Stellar Lumens (XLM) in NZ
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