Stellar is a distributed and hybrid blockchain, which is a fully opened-sourced and distributed payment network. It exists to improve the cross-asset transfers of value, including payments. Through the integration of the Stellar Network, you have the opportunity of joining an open and global financial network with various actors such as banks, payment networks, and people having equal economic participation and access. This network is backed by a non-profit foundation known as the Stellar Development Foundation. Stellar has a native asset which is Lumen. In short, you can say that Stellar is the network whereas Lumen is the cryptocurrency, which is represented as XLM.
The aim of Stellar is to provide low-cost financial services to a global base of individuals. Ninety-five percent of the initial supply of the Stellar Lumen will be given away to individuals. The Stellar Network was originally a split between the Ripple project and founder by one of the Ripple founders. Nevertheless, the primary differences between the Stellar and Ripple project is in its underlying philosophy, users of the platform, and the projects’ governance models.
What is the principle behind Stellar Lumen?
Like most cryptocurrencies, Stellar Lumens has become the hallmark of blockchain technology. It runs on a connection of decentralized servers, which is supported by a global consortium of entities and individuals. These servers are responsible for supporting the distributed ledger, which keeps details of the network’s transactions and data.
Practically, the Stellar protocol functions like a flexible PayPal. You need to upload funds to an anchor on the network to be able to use Stellar initially. Similar to PayPal or a bank, the anchor keeps your money and issues a credit to your virtual wallet. You can learn more about the Stellar network.
Trading History of the Stellar Lumen
Historical data gathered from coinmarketcap.com show that just like other cryptocurrencies, the price of Stellar Lumen has experienced some fluctuations over the past months. As at the 18 January 2018, the market opened at $0.479522 and closed at $0.509523 with a volume of $472,047,000 and a market capitalization of $8,579,040,000. This came with a low and high of $0.453596 and $0.509523 respectively. It recorded its all-time high opening and closing on the 4 January 2018. The opening was $0.892399 with a closing of $0.938144. The volume was $892,268,000 and a market capitalization of $15,953,600,000. This amounted to a low and high of $0.677496 and $0.724050 respectively.
You can find the current price movements and other relevant data of Stellar Lumen on Coinrate.com
The Multi-Currency Transaction nature of the Stellar Lumen
Without the hassle of using the normal banking procedures and currency exchange, Stellar enables you to send money freely across borders. To actualize this feat, the network carries one of the following when a currency transfer request is done.
- Stellar changes the funds using a previous order within its order book and spontaneously accelerates the exchange.
- Stellar uses the Lumens cryptocurrency (its coin) as a form of an arbitrator for the exchange. It exchanges the funds from the currency into its coin on the worldwide marketplace. This coin is then converted into another currency for the user receiving these funds.
- In the event where no trading pairs exist for the two currencies being exchanged, Stellar looks for offers within the network, which will lead to a chain conversion into the choice currency. For instance, EUR to GBR, USD to EUR, AUD to JPY, BGP to AUD.
The multi-currency exchange process of the Lumen coin is resourceful and provides users with a malleable approach to swap currencies easily on an international scale.Trade on Stellar now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future
GENERAL RISK WARNING
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.