What Is Stellar Lumens?
Stellar is a decentralized, hybrid blockchain that is fully open-source, founded in early 2014 by Jed Mcaleb and Joyce Kim. The protocol and continuous developments are supported by the Stellar Development Foundation. But what is Stellar Lumens?
Stellar Lumens was created with the idea of facilitating the cross asset-transfers of value, including the aspect of payments. The unique aspect of Stellar Lumens is that it will allow for one to be able to move money across different national borders in a quick, reliable and very cost efficient manner. The project is aiming to be so cost efficient in the transfer of payments that they are aiming to set the cost at a mere fraction of a penny.
Potential partners and users will be able to benefit from the Stellar network by integrating and having access to an open and global financial network where all parties and entities (banks, payment networks and individuals) are able to be equal in their access and economic participation.
An important note is that Stellar operates as a non-stock non profit organization with a mission of connecting people to low-cost financial services to fight poverty and maximise individual potential.
Differences From Bitcoin
The Stellar network runs on a consensus algorithm as opposed to mining. The consensus algorithm allows for transactions to processed in a matter of seconds. Lumens, their unit of digital currency, will continue to increase at a fixed rate of 1% per year. The Stellar payment network allows the user to transact via fiat or or digital currency.
What is Stellar Lumens use cases? Different applications of the Stellar Network are present in the world today. There are several examples of the use of Stellar as financial infrastructure in emerging markets and developing countries.
The Praekelt Foundation, will be utilizing the payment network by integrating it into its open source messaging application, Vumi. The messaging application enables youth in the Africa to minimize their costs in airtime credits.
Coins.ph, a mobile first financial services provider in the country of Philippines, is utilizing stellar to provide needed banking services to the southeast asian region. Consumers from all over the world are able to use the Stellar Wallet to send remittances to people located in the Philippines.
A company called Flutterwave, uses Stellar to facilitate cross-border payments for mobile platform called M-Pesa. The mobile platform supports money transfers in various countries from Kenya, India, Afghanistan, and other markets. Stellar improves the process by allowing for users in various countries to send payments regardless of their location.
The non profit continues to stick to its mission of empowering individuals by connecting them to low-cost financial services, helping them to ward off and escape poverty.
Stellar Lumens decentralised exchange, Stellaport, is now live. Decentralised exchanges are becoming the go to exchanges for cryptocurrency investors, they offer a level of security unachievable on centralised exchanges. Stellarport is powered by the Stellar Lumens token which allows for the exchange of various different cryptocurrencies, fiat currencies and ICO tokens.