What are characteristics of Stellar?
Stellar is an open-source protocol intended for carrying out fast and low-cost (micro) transactions (imagine, for example, that you need to cheaply and quickly transfer a few dozen dollars to a friend in USA). Stellar’s ambition is exactly this: to enable low-cost financial connections between people all around the world. The basic unit of this network is a so-called Lumens. Its main purpose is anti-spam protection. This is achieved by imposing a fee (albeit a very small one) for transactions of 0.00001 Lumens, but also by requiring a minimum balance of 20 Lumens in a wallet, which ensures that unnecessary transactions and accounts which would burden the network are not being created. Lumens also serve as an intermediary when exchanging regular currencies (money) which are not established as tradable currency pairs at currency exchanges.
History of Stellar
The Stellar platform began operating on July 31st, 2014. At the same time, a non-profit organization titled Stellar Development Foundation was created, tasked with supporting the development of this network intended for world-wide transfers of monetary funds and their conversion. 100 billion Lumens were released, out of which 25% was assigned to the above-mentioned non-profit organization which uses these funds for promoting and developing the platform. One of the methods the organization uses are the so-called airdrops, which means „distributing“ Lumens among people, for example when they watch videos about how the platform works.
The Stellar network doesn’t use a blockchain principle the way Bitcoin or Litecoin do, for example. Transactions are verified by running software implementations of protocol and utilizing the internet connection to allow communication among individual servers. This creates a global overview of performed transactions which each server then stores in a log. These logs are consequently stored in a database called a „ledger“ (accounting book). As soon as all servers agree about an entry in the accounting book, the transaction takes place in the matter of several seconds (2-4). The Stellar platform generates new tokens by using the inflation mechanism and rewards servers which take care of verifying transactions with these tokens. Each year, 1% of the existing total number of Lumens are released; these are given to those administrators who received votes from at least 0.05 % of current token holders.
Number of Lumens tokens
The total number of Lumens tokens is 104,882,366,062. The token can be divided into a maximum of 8 decimal places. The abbreviation for Lumens is XLM. Approximately 20 billion Lumens are in circulation.
All time high: 0,938144 USD (4th of January 2018).
Stellar (Lumens) logo
You can use the cryptocurrency exchange Binance which allows you to purchase by exchanging for example Bitcoin for Stellar (Lumens). On Binance you can buy crypto up to 2,500 USD via credit card without identity verification.
Since Stellar Lumens is the most widespread cryptocurrency in the world, it is fully supported by all available hardware wallets.