The cryptocurrency ecosystem has been bury, to say the least. There has been lots of activities in terms of startups, coin offerings, and competition in the market place. In the midst of all these, Stellar is one platform that is looking really promising.
Earlier this year, Stellar joined the elite list of top 10 digital currencies by market capitalization. Though the open-source protocol made lots of headways in 2017, it was still pretty unknown to many cryptocurrency investors until January 2018. Lumens, which is the currency of the Stella network rose from $2.5 billion to $12 billion at the beginning of the year, even when many other digital currencies suffered slips as a result of crypto correction. It has since remained the hottest digital coin, prompting some observers to refer to it as the next bitcoin.
More about the network
‘Stellar’ is the network while ‘Lumens’ or XLM is the currency. Instead of the Proof-of-Work (POW) the network uses the Stellar Consensus Protocol. There is also a lone, optimized API for maximum ease-of-use.
The stellar network is a decentralized system just like the Bitcoin network. Unlike Bitcoin which is popular among individuals and consumers, Stellar is more appealing and applicable to businesses. There are non-profit organisations and businesses around the world that have already embraced Stellar as their financial infrastructure. IBM, which is probably the biggest fan of the network, have some form of partnership that allows cross-country payments in the South Pacific. There are some banking partners in the deal.
Stellar is operated as a non-profit network. It is fully focused on payment solution. According to the network, operating cost is covered by donations and the company’s digital currency holdings.
What is special about Stellar?
Like Ripple and other great cryptocurrency platform, Stellar is focused on payments. It has adopted some special features that have encouraged growth. It is currency agnostic; supporting transactions with any currency, tokens, and assets through the decentralized cryptocurrency exchange.
Transactions are also super-fast, confirming in no more than 5 seconds. A thousand transactions can be performed per second. Annual inflation is fixed at 1%. There is no mining required in the Stellar platform.
With the Stellar lumen, there is comprehensive solution to such problems like cross-border payment, microtransactions, intermediary currency functionality.
Through the platform, a participant can easily swap two different government backed currency by accessing and matching relevant offers. The lumen would be used to facilitate the exchange in a speedy manner.
About the developers
Stellar is from the stables of Stellar Development Foundation with the original authors being Jed McCaleb and Joyce Kim. McCaleb is a known blockchain developer responsible for Ripple which is already an established cryptocurrency company. He also created Mt. Gox, the first Bitcoin exchange. He is a respected figure in the industry.
The future of Stellar Lumen
Stellar is already doing great in the cryptocurrency space and from all indications, it will perform even greater. The interesting specs and the number of problems it solves mean more people will embrace the platform with time.