Star Price | XLM Live Price Index and Chart – CoinDesk 20

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Stellar Lumens (XLM) is Stellar’s native cryptocurrency, which is a blockchain-based payment network whose leaders see it as a faster and cheaper way to make global payments than similar to money-making giants MoneyGram and Western Union. These companies pay high fees and can take days to process a transaction. In 2021, Stellar even said it was interested in buying MoneyGram.
The platform also boasts of its own decentralized exchange for trading crypto and other assets. For non-crypto assets such as gold, controlled financial institutions known as “Star AnchorsAct like banks and hold the deposits. The platform then issues tokens linked to those assets to the depositor and returns the assets after withdrawal / redemption of the tokens. That all happens on the Star ledger.

Lumens (XLM) price

In 2014, Stellar acquired $ 35 million in its initial sign sale from its native sign, XLM. Stellar’s ​​provision is managed by the nonprofit Stellar Development Foundation (SDF), which is leading the development of the protocol. When Stellar started, 100 billion XLMs were created with an annual inflation rate of 1 percent. The inflation rate was later removed.

In 2019, Stellar burned, or eliminated, more than 50 percent of its supply, reducing its total supply to 50 billion. Prices jumped more than 14% within an hour of the announcement, as the remaining tokens in circulation became scarcer.

The price of XLM hit an all-time high of $ 0.86 during the 2017 crypto bull market. In the next bear market, the price of XLM dropped to $ 0.03. Not long after the price of bitcoin reached a then high of $ 63,500, the price of XLM reached another peak of $ 0.73 in May 2021.

How Stellar works

Although Stellar borrows its ideas from Bitcoin, its main distinction of Bitcoin is that it is secured by a different consent protocol. Bitcoin uses proof to secure the blockchain and ensure that the decentralized network can reach an agreement on which transactions are valid.
Instead of proof-of-work, Stellar deploys the “Stellar Agreement Protocol” (SCP), which was invented by Stellar chief scientist David Mazières in 2015. Under SCP, set a group of “trustworthy” nodes is responsible for validating transactions and blocks, ensuring that no one prints free money for themselves.

This set of reliable nodes is periodically voted. Anyone in the network can participate by rolling a node. Every node vote on who they believe is trustworthy. The winners (whoever gets the majority of votes) are responsible for validating transactions.

Because SCP does not require expensive mining machines running computing all day, it is a much more environmentally friendly blockchain project than other blockchains. SCP is also how Stellar can support faster and cheaper transactions.

However, some researchers argue that algorithms like Stellar’s ​​are not as secure and open as the Bitcoin demonstration. For example, one research paper of South Korea’s Advanced Institute of Science and Technology, called Stellar “significantly centralized”. Because of these problems, the Stellar network has crashed at least twice in the last two years, preventing users from sending payments over the network.

Key events and management

Jed McCaleb, a computer programmer and former chief technology officer at Ripple, left Ripple in 2013 due to disagreement over the cryptocurrency company’s proposed direction. He started Stellar forming a new blockchain that broke away from Ripple’s blockchain.

In 2014, McCaleb launched the Stellar Development Fund in collaboration with Patrick Collison, the CEO of payment software company Stripe, and Stripe invested $ 3 million in Stellar.

With its ambitions to compete with large remittance companies, Stellar has joined forces with several global financial institutions over the years, and in 2020, German bank Bankhaus von der Heydt, one of the oldest banks in the world, issued a stable currency based on Stellar.

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