What is Stellar Lumens (XLM)?
Lumens are based on Bitcoin protocol, but each transaction is signed and secured using Ripple technology. Ripple (XRP) is one of the popular digital currencies. In a bid to diversify the ecosystem, Stellar will also be supported by its own native cryptocurrency, Lumens. Lumens will represent a market cap of $100 billion USD. What makes Lumens interesting is that it is similar to how USD is traded today, except that Lumens will be backed by US Treasury Bills. The Treasury Bills are treasuries issued by US federal government and represent the country’s debt. That makes this digital currency effectively being a mainstream alternative to fiat money and a tool to use on the world market. These TBs are issued directly by the US government and can be purchased by investors using US dollars.
Stellar Lumens (XLM) Technology
Lumen is built on top of NXT blockchain. The parent blockchain is capable of supporting different types of cryptocurrencies including XLM and BNT. Why Stellar Lumens is Like Ripple, Litecoin and other Coins? The following is the list of Lumens most notable properties Lumen Network Credits are a specific unit of currency. As they are not backed by any commodity or any government, they are similar to digital gold. Like Bitcoin, Lumens have no central governing body, or country or bank to manage it. The Lumens are managed by the Lumens Foundation. Lumen, can be sent or received without fees. Unlike Bitcoin, who has a minimum transaction fee of 1 cent, which is reduced to 0.005 lumens (1/100 of one lumens) on sign up.
Stellar Lumens (XLM) History
When it comes to cryptocurrencies, the first generation is still the most popular as you might know, Bitcoin and Ethereum, it’s Litecoin, Dogecoin, Litecoin Classic (LTC) etc. They all came out as open-source and pre-mined cryptocurrency, which is why they are relatively expensive right now to buy as only a few people own the whole coins, but it’s also the reason why they are riskier to buy as there is no guarantee that they will become a good business and a lot of them are worth nothing just yet. Stellar Lumens (XLM) was created by Gavin Wood and Jimmy Song in 2015, both members of Bitcoin Unlimited, which is the cryptocurrency that introduced miners to 1MB blocksize limit.
Stellar Lumens (XLM) Pros and Cons
Stellar Lumens currently holds the fifth largest market capitalization on the cryptocurrency market, therefore there are many pros and cons to consider when choosing to invest in Stellar Lumens. Stellar Lumens is currently in a free float of over 45 million coins that are held in various wallets and exchanges, that is why it is relatively inexpensive for holders to switch between exchanges. The bulk of Stellar Lumens coins are held in various exchanges that will allow you to buy and sell currencies in different amounts and in different amounts to reach the desired price. This makes it a great investment to purchase currency in smaller amounts to reach a cheaper price in exchange for higher dollar value of the currency in the long-run. Stellar Lumens Official Website: https://stellar.
Conclusion
We believe that the above are some of the best and well known cryptocurrencies in the market and the security, liquidity and features of this digital currency will allow it to become one of the dominant digital currencies in the future. So, we decided to share our insights with our readers to make you the investor.