There are various cryptocurrencies that are created for different purposes. Some are designed to fully replace fiat money, while others are designed to carry out multicurrency transactions of international importance. The cryptocurrency created on the Stellar platform, through the use of unique technologies, is used as a kind of transition between different digital coins in cases where direct exchange is not available. Stellar cryptocurrency enables users to carry out instant transactions with minimal fees. For this reason, this project is very popular in business circles.

About Stellar

Stellar is a kind of distributed transaction infrastructure that is open source. It is suitable for using publicly available financial instruments. Using the Stellar network, developers have the ability to create mobile wallets and various systems for making automatic payments.

The main advantage of the Stellar blockchain is the ability to issue new tokens for ICO. It should be borne in mind that writing code based on Stellar is an easier task than on the basis of Ethereum. The reason is that it is possible to use different programming languages without the need to master specialized ones for a long period.

XLM is a token of this platform, which can play the role of an auxiliary means for the exchange of monetary units. All operations are performed only through the system interface. When considering this project, one should highlight the equality of all participants. There is also maximum decentralization. The security of transactions is ensured through the use of autonomous nodes and crypto-encryption.

Mining Stellar is not supposed, because it is impossible using computing equipment. Only nodes work on creating blocks. You can buy Stellar on cryptocurrency exchanges, which are liquid platforms that not only trade using Stellar, but also work with fiat currencies.

How is Stellar created?

The very first blockchain startup of this company, which was focused on work in the banking sector, was launched back in 2012. This project was called Ripple. The project managed to attract the attention of many investors.

Jed McCaleb is one of the developers of Ripple, but for a number of reasons made the decision in 2014 to abandon further work on the project, despite the fact that he invested a lot of effort and money there. The reason was that the creator did not like the highly centralized Ripple network. He began to notice that more recently, a promising idea has become an ordinary commercial project that is focused on banking organizations and large enterprises.

As a result, Jed McCaleb launched an alternative project that worked on the basis of a similar protocol. However, there were no critical shortcomings that are observed in the predecessor. Among the main differences, one should highlight decentralization and the fact that the main goal of the project is not aimed at working with banking organizations, but at providing assistance to third world countries, non-profit organizations and small businesses. The name of the new platform is Stellar.

During the first year of its existence, if we consider the technical side, Stellar was a kind of clone of Ripple. But since 2015, there has been a transition to its own protocol, which is open source. During its development, careful attention was paid to eliminating certain shortcomings that were observed in the previous version.

As a result, we can say that McCaleb took his very first creation, thoroughly cleaned up all the flaws that had been repeatedly criticized in the crypto community, and added an improved protocol there. At the stage of Stellars creation, this project was of a non-commercial nature. Project management is entrusted to the Stellar Development Foundation, which is an independent development foundation. It should be emphasized that the founders of the board of directors do not receive financial benefits from this activity. This organization only deals with the development of the project and provides its support. To finance the work of the fund, 5% of all tokens were postponed. 2% were bought, for which the team received $ 3 million. This is a rather modest amount by todays standards, and it does not even compare with how much the creators of the previous version were able to earn.

At the time of the launch of the platform, over 100 billion tokens had been issued. This figure is fixed, therefore no additional emissions are envisaged. The company approached the distribution of coins in a rather interesting way. They did not go on sale, but were distributed free of charge in the following order:

50% went to users in small portions;
25% went to non-profit organizations;
Bitcoin holders received 20%;
5% left the developers to themselves for the needs of the project.
The tokens that were received through the collection of transaction fees are also distributed completely free of charge.

Stellar features

Stellar has taken a fairly strong position in the modern cryptocurrency market. Stellars main competitors include not only its predecessor, but also Ethereum. Thanks to this, we can safely talk about the rapid growth in the popularity of this cryptocurrency. In addition, the cheap transaction fees should be highlighted, which undoubtedly attracts users. Also contributing to the popularity is the fact that it is much easier to write code based on Stellar than in Ethereum. Users can use different programming languages without having to master a specialized language, as in the second case.

This platform was developed as a universal tool for carrying out financial transactions. It is suitable for instant exchanges between cryptocurrencies, tokens and fiat currencies. Stellars own cryptocurrency - lumens - is a kind of bridge between assets that do not have direct borrowing markets.

In addition to carrying out transactions of an exchange type, on the basis of this network it is possible to launch smart contracts, create various decentralized applications and conduct ICOs. Thanks to this, Stellar has become a worthy competitor not only to Ripple, but also to Ethereum. Through the use of unique solutions, the project attracts the attention of new investors and developers.

Is Stellar infinite?

Since this coin today is not as widespread as Ethereum or Bitcoin, it is not yet possible to buy Stellar Lumens on online exchangers. Despite this, it is possible to purchase this cryptocurrency on such popular cryptocurrency exchanges as Binance and OKEx.

If you decide to buy a crypt, then you should take into account that it will not work to make a purchase for fiat money. Initially, you will need to exchange the national currency for bitcoin or some other popular crypt. And already on them you can buy lumens. Stellar will be priced at the current rate.

As for the production of cryptocurrency, it has no serious prospects yet. A limited batch of tokens was released on the market, at the moment the developers plan to increase their number, but they do not name any terms.

Stellars strengths

Stellar is a fairly powerful tool, the main purpose of which is to make cross-border payments to different countries. This system combines banking instruments that were inherited from its predecessor - Ripple, and its own decentralized protocol.

In order to fully determine the future of Stellar, you should first familiarize yourself with the main advantages of the system:

Transactions are processed almost instantly. Unlike bitcoin, which is the first cryptocurrency and has been on the market for quite some time, the Stellar system is able to send a transfer directly to the validator. For this reason, the recipient will see the credited funds in a maximum of five seconds on his account.
Low power consumption is ensured. The reason is that there is no mining and due to the use of computing systems, tokens are not mined. The process of verifying transactions on the network is much more energy efficient.
Users note easy access. This cryptocurrency can be used to carry out blockchain transactions to countries in which virtual assets are not very popular or are prohibited by the state.
Since all transactions are carried out in a decentralized manner and exclusively on the Internet, control over the transactions made by government authorities is excluded.
Despite the significant advantages that are presented above, certain disadvantages of the system should also be pointed out:

The project cannot boast of a perfect security system. For this reason, if there is a suspicion of the likelihood of a hacker attack, users are faced with the fact that the network freezes.
Stellars value drops. Stellar inflation is equal to one percent.
Provides a small income for maintaining the nodes.
There are limited options for decentralized applications to work.
Most often, the services of this platform are used by companies that operate in underdeveloped countries located on the territory of the African continent. Today, there is an increase in the demand for this cryptocurrency, since it is much easier and more profitable from an economic point of view to launch an ICO on a specialized XLM platform than on Ethereum. These advantages were appreciated by the creators of young blockchain projects.

Stellar in TOP currencies

There are both positive and negative forecasts for Stellar cryptocurrency. Therefore, it is safe to say that its future will largely depend on the competitiveness of this project, to what extent its proposals will be more in demand than those presented by competitors. As of December 2019, the capitalization of the currency is $ 1,029,193,610, and in the currency yield rating it is in 11th position. The most popular service that Stellar offers to users is cheap and fast transfers to different countries. This is one of the main advantages of this project, because it is in this niche that XLM has no competitors at all. There is an active development of this project, as the development team regularly introduces new technologies. In addition, the creators are actively working to eliminate the shortcomings.

Stellar Lumens cryptocurrency is a pretty serious project in terms of market coverage. But at the same time, many experts do not recommend counting on the growth that was observed in the Ripple company. Despite the fact that the presented project is more perfect, Ripple is supported by banking organizations and many large corporations, whose numbers are increasing.

Despite this, analysts say that cryptocurrency will rise in the near future. Already today, the project is one of the ten world cryptocurrencies, which occupy leading positions in terms of capitalization. This attracts the attention of investors, many users want to buy Stellar. However, as a short-term investment, it is better to take a closer look at other projects, since in this case one should not expect big profits. But the presented development is promising, and, for sure, the main victories are yet to come.