Stellar Lumens cryptocurrency: description, mining, buying, prospects

Stellar Lumens is a decentralized financial unit formed in 2014 as a fork project of the Ripple Group. Unlike other subsidiaries, Lumens was completely autonomous and had its own channel for distributing tokens, as well as a separate management apparatus.

This fact caused a huge amount of controversy in the ranks of rights holders, which prompted the board of Ripple to finally cut off the token chain, withdrawing all authority. Thus, on October 16, 2017, Stellar Lumens became a free organization, independently responsible for all obligations to investors.

Features of the Stellar Lumens cryptocurrency

Stellar Lumens isn’t just a monetary assignment, but also a whole system with its own approach to solving some special problems.

In particular, the project was based on a free access code, which allowed all depositors to make basic transactions without charging fees. The operating system integrates the power to multiple data lines, thus protecting assets from tampering by third parties.

Servicing is performed thanks to a high-speed EVM. The machine fully controls the functional characteristics of the platform, exchanges currencies, transfers active gateways to the access field (for withdrawals) and performs transactions on request. 

Basic system parameters:

• Transaction time doesn’t exceed 5 seconds;
• Used for sale of any financial instruments;
• Encryption algorithm – SCP;
• The total number of coins at the time of creation was 100bn. In 2019, by decision of the developers, half of the coins were burned and now the total number of coins is 50bn, in turn there are 25bn in circulation;
• It is necessary to have a constant balance of 20 xlm to maintain the liquidity of the currency account.

Mining

Lumens cryptocurrency mining is impossible in principle. The developers of Stellar have completely eliminated this process, by generating only one constant code when launching the platform. Thus, the entire token chain is something like an investment fund, aimed at trading and implementing business objectives.

Buying coins and creating a wallet

You can buy Lumens on almost any cryptocurrency exchange (Binance, FTX, Coinbase, etc.) or exchange your existing digital currency at any exchanger.

You need to use a registered wallet or create a new one. Beginners often choose online wallets, so as not to get bogged down with the intricacies of the program. For example, you can use the service https://stellar-wallet.org/ – here you don’t need to install any additional software and exchange XLM coins directly from your browser – this is what attracts many users. 

Creating a wallet takes as much time as registering on a social network or registering a mailbox. In such a short period of time you will become the owner of your own Stellar wallet and already can receive and send Stellar coins all over the world or just leave the funds for storage in the hope of an increase in the rate to sell in the future at a higher price than when you bought it.

Prospects of the project

In mid-2022, interest in Stellar increased significantly. And first and foremost, it interested representatives of banking structures. National banks are increasingly choosing the Stellar platform to develop their own national digital currency (CBDC). 

Also, if you follow the news in the cryptocurrency world, you probably heard about Stellar’s integration with Moneygram – it will help expand the use of Stellar in today’s remittance world.

As you can see, Stellar hasn’t stopped evolving and is moving step by step to help people all over the world have access to instant international and regional transfers. In doing so, Stellar can save the user from paperwork and huge transfer fees.