This review will be devoted to a Stellar (XLM). In this article, we will talk about what Stellar (XLM) is, what features are key for this project and its own cryptocurrency.
The Stellar (XLM) project basic information
So, what are the Stellar (XLM) cryptocurrency and the platform on which it operates? Developers have taken care of ensuring the highest level of protection of user data. The project’s concession is based on the following principles:
- Distribution among all computing capacities within the network;
- Consensus algorithm;
- The universal protocol of user trust;
- Multicurrency trading advantages.
Thanks to the principle of decentralization of the system, it became possible to conduct parallel transactions. Simultaneously operating system nodes ensure the platform’s independence and prevents interference of third parties in the process of network operation. The nodes operate in an autonomous mode, so large network fails are excluded from the system.
Records registration in the system
The Stellar system automatically records the performed operations. Thanks to the principle of decentralization, transaction protocols are stored distributed among the system nodes of the platform. Each of the data nodes has the ability to start the server and check the current register of the accounted operations. This is due to an automatic consensus algorithm.
Consensus can be described by the process of interaction and synchronization of the system servers to ensure the successful completion of transactions. The frequency of reaching a consensus in the network is from 2 to 5 seconds.
Anchors, trust, and credit
Anchors when using Stellar (XLM) are users who got a certain degree of trust for withholding deposits and issuing loans within the platform. In fact, they are an intermediate link between other currencies and XLM. All transactions, except for operations in Stellar tokens, are carried out with the participation of anchors and have the form of a loan.
The platform captures all data processed by the system for a certain period. All operations in the system have the form of public obligations, connected by the exchange of a loan of funds at a certain rate. This is how the general order book is formed, thanks to which users have constant access to buying and selling tokens taking into account the currency’s relevance.
Stellar coins (XLM) and its platform allow you to operate with different currencies that are available on your balance sheet. For this, you use distributed exchange and mediation of anchors to achieve the desired results. There are several ways to perform currency transactions:
- Through conversion – the system provides you with the ability to search for offers for internal exchange and automates the operation;
- By using Stellar (XLM) tokens as an intermediate currency – if you are a holder of a fiat currency, the system will find you offers for exchanging your money for tokens and users interested in this type of exchange;
- Through a chain of conversions – in the absence of counter offers for the exchange, the system will find you a series of intermediate offers that can lead to the receipt of the desired currency.
The XLR tokens are specially designed for operation inside the Stellar platform. They are a standard network resource and operate on the principle of other cryptocurrencies, such as Bitcoin – they can be traded and exchanged on one of the available digital exchanges. Within the project, three years ago, 100 billion XLR tokens were released to the market.
The Stellar (XLM) tokens, whose price as of February 19, 2018, is 0.458027 US dollars per coin, which in Bitcoin equivalent is 0.00004174 BTC per token, and with the Stellar (XLM) capitalization of more than 8,4 billions US dollars. Due to the use of modern technological solutions by the developers exclude the possibility of carrying out an excessive number of transactions on the network and consuming huge memory resources. Work based on the Blockchain technology ensures stable operation of the network. At the same time, you can use this cryptocurrency as an intermediary for obtaining the desired tokens – it is actual in the absence of direct exchange offers.
Stellar (XLM) coins wallet
On the official website of the project you can find all the interesting information about the project and the cryptocurrency. If you want to purchase some number of LCR tokens, then you will need a registered account in the system. To do this you need to register and receive a personal purse number. Go to https://www.stellar.org/lumens/wallets/ and look for the “Purses” section. There you will be offered a choice among different types of software for different types of devices.
Registration is very fast and does not cause any difficulties even for newcomers to the market of cryptocurrencies. You will need an email address through which you confirm the registration and receive your personal XLR wallet number. It works the same way as your bank card number – just specify it when making transactions and the funds will be sent directly to you on the account.
Advantages of Stellar (XLM)
The use of CLR tokens will provide you with excellent opportunities for trade and exchange. Among other things, the project offers the following benefits:
- Possibility of conducting simultaneous micropayments.
- Relatively low level of commission fees for conducting transactions.
- Full compatibility of the platform with numerous third-party products of the cryptocurrency market.
- Uninterrupted work in real time.
- Improved user data security protocols and cryptographic data encryption.
- The ability to integrate plugins.
Disadvantages of Stellar (XLM)
Of the project’s shortcomings, it is worth mentioning the mandatory withdrawal of the commission. However, its size is fixed and is 0.00001 HLR token.
Also on the platform, a minimum balance is established for the exchange operations within the network, amounting to 20 HRS. In turn, this input threshold excludes the registration of spam accounts that do not benefit the project. In order to perform transactions with the “anchor”, 35 XLR are required on the account.
Prospects for Stellar (XLM)
Summarizing the results of our article, it is necessary to recognize that the work of the Stellar platform is very stable due to the coordinated algorithm. This eliminates major disruptions in the work of the platform and increases the speed of transactions. Protection protocols ensure maximum confidentiality of data. If, in the future, the XLR tokens are not at the top of the rating, they will take a worthy place among secondary cryptocurrencies, contributing to the development of the market and the trading of tokens on digital exchanges.