What is Stellar?
Before we can discuss the current events behind this coin (the lumen), it’s important to know the mechanics behind it. Stellar is a network that connects payment systems, banks and people to create a cross-asset, low-cost transfer of value.
Stellar’s native currency is called lumens, which is shown through the symbol XLM. All three terms, XLM, lumens, and Stellar – are used interchangeably. While stellar is its blockchain network, XLM is the trading symbol and lumen is its cryptocurrency.
How Does Stellar Work?
While Stellar works to act as a decentralized payment system like Bitcoin, its main feature is the consensus protocol. Currently, Stellar is a result of the 2014 fork that made the Stellar Consensus Protocol (SCP) which follows when Stellar became an open-source protocol.
Stellar uses a distributed exchange model, which lets the user send a payment (with a currency such as EUR) even though it might be using USD credit. The network performs the forex conversion at the best rates. The receiver can withdraw the USD equivalent through their partner institute (i.e. bank).
In 2018, Stellar created a deal with TransferTo to enable cross-border payments for over 70 nations. Also, it’s the first blockchain ledger to receive a Shariah compliance certificate for asset tokenization and payments. And it was selected as a partner by IBM to create a stable coin project.
Stellar Receives Positive Reviews by Weiss Rating
Stellar Lumens and XRP has received positive reviews from an independent rating company named Weiss Ratings. The company stated that although cryptocurrency is in a bear market, these two currencies experienced smaller losses than others, which is a direct indicator of their strength.
In fact, in the past 24 hours, XRP and Stellar are the only two top-10 currencies that are not failing. Stellar has improved by 2.27% while XRP has increased by 0.27%. Each of the XRP coins can be purchased for around $0.47 dollars while the Stellar coins can be bought for about $0.24 dollars.
What is the Future of Stellar?
In the future, Stellar might be added onto Coinbase as a new crypto asset. In the previous months, Coinbase – which is one of the most popular exchanges in the cryptosphere, has started to add support for coins such as Basic Attention Token (BAT) and 0x (ZRX).
At this moment, Coinbase didn’t disclose any information on adding XRP to its trading platform. Some time ago, Coinbase’s Custody decided to add its support for XRP for its custodian service. Like all cryptocurrencies, the future is uncertain for Stellar, but we can guess that
Conclusively, we believe that Stellar has the potential to grow in the future. Despite the cryptomarket crash that occurred within the previous week, it has given signs that it can grow out of this market rut. We’re excited to see what will happen to Steller in the upcoming months.
Last Updated on February 3, 2021.