Stellar (XLM) – a decentralized blockchain platform for real-time cryptocurrency transactions. The system uses the internal cryptocurrency Lumen (ticker XLM). However, the name of the cryptocurrency of the same name with the platform is more often used - Stellar or combined – Stellar Lumens.
A number of analysts believe that Stellar is an improved and significantly safer and more reliable version of Ripple.
Stellar was created as a powerful tool that should make cross-border payments available worldwide. Thanks to the combination of banking instruments taken from Ripple and its own decentralized protocol, Stellar has undeniable advantages:
Liquidity - thanks to "anchors", you can exchange any assets without the need for pre-conversion. In addition, the exchange is carried out through a built-in decentralized exchange, so transactions are executed almost instantly, unlike centralized platforms (like Binance, Bitfinex).
Speed — unlike Bitcoin, where transactions are sent to a shared pool before they are approved by the nodes, in Stellar, the transaction is sent directly to the node for verification. The entire process from the creation of the payment to its receipt by the sender takes from two to five seconds.
Energy Efficiency-By using the proprietary Stellar Consensus Protocol instead of the traditional Proof-of-Work, the transaction verification process is much more energy efficient than bitcoin mining.
Accessibility - XLM will be useful even in countries where cryptocurrencies are banned or unpopular. The sender can send the transaction in cryptocurrency, and the recipient can cash out the money in any available currency
1. The company Ripple Labs, which developed and promotes the Ripple platform, is a commercial project aimed at making its own profit;
2. Ripple Labs может легко манипулировать курсом Ripple;
3. Ripple this is a fully centralized project and any changes can only be made on your own initiative Ripple Labs;
1. Stellar is developed and promoted by the Stellar Development Foundation. The work of this non-profit fund is not controlled by the creators of the currency;
2. The Stellar crypto currency is based on an open protocol developed specifically for this project. The activities of the Stellar Development Foundation are completely transparent and open to all users. All information on investments and spending is publicly available;
3. 25% of the 100 billion Stellar coins originally created were transferred to non-profit organizations. 5% are held in the fund's accounts to cover the costs of conducting operations.
Large holders of coins have signed a special restrictive agreement, according to which they undertake not to sell them for the next 5 years, in order to prevent the possibility of influencing the cryptocurrency exchange rate. According to the creators of the Stellar platform, everything possible has been done to ensure that the project is completely rid of the speculative component.
The project was initially supposed to use the Stellar currency of the same name, but in 2014 it was rebranded and the coin was renamed the Lumen cryptocurrency with the XLM ticker. The project itself has acquired the main features that it currently has.
Stellar -it is a decentralized consensus platform where transactions with various assets are possible. The Stellar cryptocurrency itself serves only as the main unit of account for conducting operations. Thus, the XLM cryptocurrency is an intermediate means of exchanging one asset for another.
For example, the user has litecoins on the exchange. He needs to transfer them to a third party, but in the form of bitcoins or transfer them to his fiat account in a credit institution. To perform these operations, you just need to register on the Stellar platform, enter the initial data, choose the most appropriate method that the system offers, and then complete the transaction. In this case, the lumens will only be required to pay the system commission. Its size is 0.0001 XLM.
The operation of such a scheme is carried out on the basis of a decentralized Stellar exchange, which operates on an internal SCP algorithm that acts as a consensus protocol. The algorithm is based on a ledger – an array of distributed data registers. This is where information about all transactions is stored.
The operation of the register is based on the work of numerous independent nodes that duplicate the data of the ledger. In the event of a failure of one or more nodes, the system will continue to work, as the data is stored on other nodes. This ensures the integrity and stability of all platforms.
The Stellar cryptocurrency appeared on the stock exchanges in early August 2014. The initial price of the coin was only $0.002, and the market capitalization was about $768 000.
For the first three years, the price of XLM remained unchanged, but in May 2017, the coin's exchange rate began to gradually increase, reaching $0.06. At the same time, the capitalization was over $490 million. Until the end of 2017, the value of the coin did not exceed this mark, the exchange rate was stable without sharp ups and downs.
Since the end of November 2017, Stellar has started to grow rapidly. On December 19, XLM jumped sharply to $0.27 with a capitalization of $4.7 billion. This increase in value was due to the general hype for cryptocurrencies. In addition, during the same period, Stellar announced a partnership with IBM to conduct international transactions in real time.
On January 4, 2018, the exchange rate sharply "jumped" up, reaching its record level of $0.89, and the capitalization was almost $13 billion. This rapid growth of XML is associated with the peak of investment in ICOs. The placement on the Hong Kong stock exchange OKEx and the partnership with the Pundi X platform also had a positive impact on the dynamics of the exchange rate.
In just a month, the price of XLM has almost tripled, dropping to $0.33, and the market capitalization has fallen to $6.8 billion.
In 2018, Stellar is characterized by sharp fluctuations in the exchange rate. The rise of the course can be explained by the appearance of the developer of Stellar-Jed McCaleb on the pages of the New York Times newspaper, which listed him in the TOP 10 "revolutionaries" in the field of blockchain.
Until April 2018, there was a downward trend, then on April 29, the exchange rate took the mark of $0.45 with a capitalization of $8.5 billion, after which the rate continued to decline.
At the beginning of 2020, the price of Stellar returned to the $0.06 mark, the capitalization of the coin was about $1.2 billion, so XLM was ranked 10th in the CoinMarketCap rating.
In 2021, despite the next "bullish rally" of cryptocurrencies, Stellar has not yet updated the historical maximum set in 2017. At the peak, the price was $0.58, which is almost 1.5 times less than the ATX of $0.85.
There is no official Stellar wallet. There are many different Stellar wallets created by third parties, which differ significantly from each other. Hardware wallets are considered the most reliable. Next in terms of reliability are software wallets and we will consider one of these wallets- Atomic Wallet in this article a little later. Online wallets are considered less reliable, although many of these wallets are very reliable, below we will take a detailed look at the online wallet Coinbase.
Atomic Wallet - the best software multi-currency anonymous and secure wallet that supports staking cryptocurrencies such as Tezos( XTZ), Band Protocol (BAND), Cosmos (ATOM) and others, and allows you to receive up to 23% per annum. The wallet is available on Windows, Mac OS, and Linux platforms. Atomic Wallet can be installed as an application on your android, which can be downloaded from Google Play and the App Store. Let's take a step-by-step look at how to create a crypto wallet.
How to create a wallet?
1. Download the distribution package from the Atomic Wallet website for your operating system and run the installer. The program will be installed automatically.
2. Launch the client and click "New Wallet" to create a new wallet.
3. Create and enter a complex password to encrypt your wallet, and then confirm it. The password protects the wallet files from unauthorized access. Now click the "Set Password" button.
4. Wait for the wallet to load.
5. The wallet will display a seed phrase of 12 pseudo-random words to restore access to the crypto wallet. Write it down on paper in the same sequence as shown on the screen, and save it in a safe place that is not accessible to unauthorized persons.
6. When everything is ready, click "Open wallet".
7. The wallet is created.
Important. It is not safe to copy the seed phrase to the clipboard and take a screenshot – it can be compromised. It is ideal to disconnect the device from the Internet and record the seed phrase on an offline medium. Do not pass or communicate the seed phrase to anyone. Only the owner of the wallet should know it.
Many users rated this wallet as one of the best so far. Pros: supports most of the well-known cryptomonets, including the Stellar cryptocurrency. The app has a nice interface, the wallet has built-in exchange, staking.
You can have multiple wallets on your desktop by managing the wallets through separate user accounts.
Now you can copy the wallet address and start collecting star coins.
An example of a reliable multi-currency wallet onlay, which allows you to store and perform operations with the stellar cryptocurrency, can be considered Coinbase.
You can also install the Coinbase wallet app on your phone and store all your digital assets in one place.
This wallet stores your coins and you should fully trust such a resource, as unreliable sites can steal your tokens over time. But online wallets are very convenient and many users prefer to store their coins in this way. If you choose an online wallet for Stellar on a reliable resource, then you can not worry about the safety of your coins, it is not more risky to store tokens compared to software wallets.
Coinbase - an easy-to-use crypto wallet that allows you to store most of the known tokens in one place. The wallet allows you to move your coins to a "safe", from which the cryptocurrency is withdrawn only after confirming the request for two emails and you can withdraw the tokens no earlier than 48 hours after confirmation.
To work with taps, the Coinbase wallet is quite enough, it is reliable and easy to use.
Registering a wallet
To create an account, go to the Coinbase official website. On the title page, click "Sign UP".
Coinbase wallet registration requires you to enter your personal data. You must specify:
First and last name;
Open the email from Coinbase Wallet and confirm the email;
After that, a window will pop up, here you must enter the mobile phone number to which the verification code will be sent. Only after you write the code from the SMS in the verification form and click Submit, the registration on Coinbase will be completed.
After that, you will need to pass the identity verification, specify:
Date of birth
Upload a scan of your identity document.
The wallet is ready to use and now you can store, receive and send stellar coins.
However, despite all the advantages of this project, it has its drawbacks. We have already said that the Stellar project was created as a competitor to Ripple. Despite the fact that the Stellar cryptocurrency has significant advantages in the form of a decentralized protocol and serious partners, Ripple still has more of the latter, because at this stage of development it offers more advanced tools for the banking and financial sector.
And, despite the fact that Stellar claims to be decentralized, unlike Ripple, which is completely centralized, some experts do not think so. For example, in 2020, the company Morgan Creek said that it does not include Stellar in its portfolio due to the concentration of a large number of coins in a narrow circle of people.
If we consider Stellar as a cryptocurrency for ordinary users, then preference is given to more popular coins, such as, for example, Dash or Bitcoin. Dash — because the team is constantly developing new tools that make it easier to work with digital assets (for example, transferring funds via SMS in South American countries), and conducts active educational work among the population. Bitcoin is still the most popular coin and is the equivalent of the words "cryptocurrency" and "blockchain" for people who are just discovering the crypto industry. But Stellar is not yet in the list of currencies for everyday payments.