One of the goals to be pursued by businesses and financial institutions around the world is to reduce the gap in banking services. Stellar was born under this objective, a non-profit organization, which has launched its own solution to this problem.
And it is that today, there is still a large part of the world population that cannot access these services. That's right, here we will talk to you about Lumens, the XLM platform and cryptocurrency which has set the goal of meeting Stellar's goal.
✨What exactly is Stellar?
As we already told you, Stellar is a non-profit organization whose goal is to connect banks and users around the world. For this, Stellar has created a platform known as both Stellar and Lumens which was launched in 2014.
We can define Stellar as a large network of decentralized servers which has the capacity to process thousands of transactions simultaneously with the highest security.. This helps banks and individuals to carry out operations with any currency, virtual or conventional, quickly and at the lowest cost.
By making it possible to process thousands of transactions simultaneously, the operating cost of the platforms becomes much lower. Thus, it is possible that banks scale their services and that users can make transactions at very low cost.
This route is the one that Stellar has drawn as a way to reduce the gap that exists between financial services and users. What's more, this platform could serve as an efficient strategy to combat poverty. This is because it can help money reach people faster and at a lower cost.
✨ Points that you should know about Stellar.
- Less time: One of the great advantages that Stellar offers is that it reduces the time it takes for transactions to exchange significantly. Basically, the processing of transactions between banks and institutions is reduced to a matter of seconds.
- Greater efficiency: Being able to process thousands of transactions simultaneously increases the efficiency of the systems. In this way, you can make more transactions in the same time, reducing operating costs. This, in turn, makes sales can increase, as well as profits and benefits for users.
- Accounting book: Another important feature is that Stellar incorporates its own ledger or ledger. This is located on each server and its task is to verify transactions, for this it uses a consensus mechanism. This book syncs every 2.5 seconds.
- Capacity: Stellar's capacity is enormous, this in order to be able to give greater support to all operations between banks. According to data from the developers, Stellar supports up to 1 billion accounts with about 1,000 transactions per second. Bitcoin only supports 7 and Ethereum hits 25.
- Transaction costs: Finally, you should know that Stellar's commission and operation costs are significantly lower than those of other currencies. Here a commission cost of only $ .001 is handled so it turns out to be a very cheap platform and cryptocurrency.
- Token: Besides being a platform, Stellar has its own cryptocurrency which is known as XML. The currency serves as a kind of bridge between the initial transaction and the final one, the user who sends it and the one who receives it, so it is used more as an operational currency.
Being a decentralized network of servers, Stellar incorporates technology that allows them to operate in a network, through a constant connection, but independent of each other. The goal is to include more and more servers in the network so that there is backup in case of failures.
To keep a better record of operations, Stellar runs a software which allows to create a precise log of operations. This book has a consensus system to back it up which uses the Stellar Consensus Protocol SCP, an improved version of PoW.
In addition, the so-called Anchor are used, a bridge which is formed between the coin and the Stellar network. In this way, the money sent goes through the bridge to a distributive bag known as Pool which converts the coin to Lumens and then to the final coin.
This process is done in a matter of milliseconds, because the network operates at very high speed. In addition, the use of the Anchors ensures that the user will receive the best exchange rate or value by actually reducing the cost of commissions and operation times.
✨How to get my coins?
Being a coin used as part of an internal process, it cannot be mined since all the coins have already been created and released every so often. That is why the only option to get Lumens, Stellar virtual coins, is to buy them.
While Stellar is a relatively new platform, in reality its coins already have a certain prestige in the market. In this way, we can find Lumens in the main exchange houses around the world. You can make changes to both cryptocurrencies and fiat money because it has many pairs.
✨ Is it worth using?
Stellar has a host of benefits for its users. The possibility of making transactions in seconds and at a very low cost is the main offer of this platform. In addition to being versatile, since it operates with many currencies and global banks.
In addition, Stellar's goal of reducing poverty and inequality in financial services is certainly worth highlighting. Few are the platforms that put a social purpose as part of their structure, thus focusing on changing the world.