Create a new financial system
"The future of banking is here" says at the official website of the organization. The goal: to create a new financial system. The organization wants to use the Stellar Lumens (XLM) cryptocurrency to connect banks, providers and people worldwide and make money transfer as fast and cheap as possible. Stellar Lumens is already very established on the crypto market and is currently in 4th place according to market capitalization, right behind Bitcoin, Ethereum and Ripple.
Just like the IOTA Foundation, Stellar is a non-profit organization and sees itself more in the service of the general public than to achieve the greatest possible profit. The Stellar team is made up of technology and finance professionals and aims to use their technology to provide access to cost-effective financial services. The crypto currency Stellar Lumens was specially developed for people who do not have easy access to the financial world, as we are used to in Europe.
Stellar was created in 2014 as a fork of Ripple (What is Ripple?). Like Ripple, Stellar wants to create worldwide cryptographic payments, whereby Ripple not like Stellar focuses on a total solution for all people, but focuses on working with international banks.
The token: XLM
The token of the cryptocurrency is abbreviated XLM. A lumen (XLM) is the unit of the digital Currency and put that native asset of the Stellar network The Lumens are essential for the network and have two main functions:
- Anti-Spam: A tiny amount of Lumens (0,0001) is burned with every transaction. This prevents a spam attack on the Stellar network.
- currency converter: Lumens can help facilitate payments between different currencies. The lumens serve as a kind of bridge.
Overall there is 100 billion lumens, where the number is defined at the time of origin and is determined by a fixed protocol. Inflation is 1% annually and it is impossible for any person to create new Lumens.
At its peak on January 4, one lumen (XLM) was worth almost $ 1 ($ 0,93). The price is currently $ 0,063 (as of May 11, 2020). XLM, like all other cryptocurrencies, has suffered greatly from the "crash" that occurred in 2017.