Stellar Lumens Summary
Stellar Lumens refers to the Stellar blockchain and the Lumens cryptocurrency that powers it. The key feature of the Stellar blockchain is the low-cost and fast conversion of one asset for any other asset. Therefore, the scope of the Stellar blockchain is much grander than bitcoin.
What is the Stellar Blockchain?
The Stellar blockchain is a decentralized network to facilitate transfers of assets, such as currencies. Similar to Bitcoin, the Stellar blockchain records a list of all the balances and transactions belonging to every single account on its network. Unlike Bitcoin, the Stellar blockchain emphasizes low transaction fees, handles many different asset types (not just XLM), and can maintain its own order book for each pair of assets. Much of the Stellar network’s development has focused on cross-border exchange of assets, such as U.S. dollars for Euros, at much lower costs and higher speeds than current non-blockchain technology allows. For example, the Stellar team is“to develop a blockchain-based cross-border payments solution proven to significantly reduce transaction costs and increase transaction speeds.” To facilitate the transfer of assets at a low cost and high speed, the Stellar blockchain has a unique anchor system whereby anchors act as bridges between various asset types.
What are Lumens?
Lumens (XLM) are the native token of the Stellar blockchain. XLM are required to pay the base fee charged by the Stellar blockchain for any transactions and therefore any person who transacts on the Stellar blockchain needs XLM. In addition, XLM can act as an intermediary currency if there are no direct exchanges available between two assets. For example, if there is no direct exchange available from USD to EUR, the Stellar blockchain may make two seamless transfers: from USD to XLM and then from XLM to EUR.
Interested in Buying Lumens (XLM)?
We recommend the cryptocurrency exchange Binance for buying and selling XLM.