On its website, Stellar Lumens (XLM) describes itself as “a platform that connects banks, payments systems, and people. Integrate to move money quickly, reliably, and at almost no cost.” It is a distributed, open-source payment ecosystem.
Their main objective is to make money transactions faster, cheaper and more reliable. Their platform will connect people all over the world and make cross-border transactions easier.
It is also possible for developers to build on top of the Stellar platform. Transactions on the network take 2-5 seconds to resolve.
Stellar ecosystem runs on a network of distributed servers supported by a consortium of individuals and entities. These servers run the distributed ledger that tracks transactions and other information.
Stellar also integrates a fiat and cryptocurrency exchange on its platform. The price is determined by the person who places the order, so it is not as influenced by the market fluctuations as other exchanges.
When an order is placed, the Stellar exchange platform does one of three things:
- The order is matched with a previous order and the asset is exchanged for the one that is desired.
- The system uses Lumens (XLM) as an intermediary for the transaction. (Currency X vs. Lumens and then Lumens vs. Currency Y)
- If these two methods don’t match with the order, a chain of transactions will me made. (A vs. B, B vs. C, C vs. D, D vs. E)
The exchange is interesting and innovative because this system will allow for more orders to be processed by accommodating trades in every currency.
Many large companies have started developing systems on top of stellar lumens. These partnerships include IBM, Deloitte, Parkway Projects, KlickEx and Tempo.
Stellar Lumens (XLM) coins are available on Binance.
The future is right for Stellar as it has many aspects that make it a good candidate to stay in the top cryptocurrencies in the future.