Stellar

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Stellar (XLM)

The main goal set by the developers of the Stellar system is to create a kind of portal for the exchange of cryptocurrencies, in the case when there is no possibility of direct operation.

Thanks to the Stellar platform, which has close contacts with most payment systems, it is much easier to carry out financial transactions. The user has the ability to conduct transactions within one system, conduct currency exchange operations, purchase and convert cryptocurrencies. This opportunity significantly reduces the time for most financial transactions, and also significantly reduces the cost of their implementation.

Stellar is powered by the Ripple blockchain platform. A feature of the system is the use of "Byzantine fault toleraXLMnce", the essence of which boils down to the fact that the system remains operational even if some of its nodes are damaged by hackers.

All XLM users have the opportunity to personally run a check of the reliability of transaction nodes, to choose the most promising for cooperation for their work. The community of users monitors the overall security of the system, which allows the development company to avoid problems with the credibility of its work on the part of customers. When a problem is detected in the operation of the node, a special program code is activated, which completely blocks the operation of the suspicious object.

At its core, the workflow for conducting foreign exchange transactions is as follows:

  • The user creates a request to conduct a transaction in one of the system nodes;
  • The working node automatically checks the balance of the user's wallet, thereby confirming the possibility of carrying out a financial transaction and transfers the information to the next working node;
  • At the last working node, a blockchain is formed, which is synchronized with several of its copies.
  • The system spends, on average, 5-10 seconds to carry out the entire cycle.

The Stellar platform employs an anchor system that allows you to work with most world currencies, carry out operations for their conversion and transfer with a minimum commission.

STELLAR CRYPTOCURRENCY HISTORY

Stellar became the first project that combined in one system the work of exchanging and transferring most currencies and cryptocurrencies among themselves as soon as possible and with a minimum commission.

Mr. Musk’s comments about bitcoin have added to price volatility, at times causing sharp swings in the cryptocurrency’s value. Mr. Musk said that with his personal holding in bitcoin, he is financially affected when the price drops

Initially, Stellar was developed as a fork of the Ripple platform, which, despite its high popularity, has problems with decentralization. The Stellar system began to fully function in 2015. In the process of creating a cryptocurrency, the developers took into account all the shortcomings of Ripple and eliminated them in their work.

Due to the fact that at the time of the appearance of Stellar on the cryptocurrency market, the analogs of the system were absent, its popularity was initially quite high. Financial support from the owners of the Ripple platform played an important role in this.

STELLAR CRYPTOCURRENCY HISTORY

Three years after its launch, XML has partnered with more than 200 marketplaces around the world, and companies such as Amazon and SWIFT accept Stellar as payment for their services.

The highest activity of Stellar was observed in the middle of 2018, during the period of the general cryptocurrency boom; by the beginning of 2019, there was a correction and the rate indicators returned to their original positions.

STELLAR CRYPTOCURRENCY RATE

Stellar cryptocurrency belongs to the category of currencies with a low value. Today, one coin on the exchanges gives $ 0.48. Despite this, electronic money demonstrates high volatility, which makes it very attractive to traders.

The highest rates were recorded in 2018 - 0.98 US dollars. After the correction, the rate stopped at around 0.33 dollars. Throughout the entire time, right up to the global financial crisis in 2020, the cryptocurrency demonstrated the stability of its indicators without sharp changes in the rate. The crisis in the foreign exchange market did not particularly affect the stability of the Stellar rate, this is primarily due to the fact that the majority of users used the system to conduct their financial transactions, and not to invest directly in cryptocurrency. The main reason for the slight decline in the Stellar rate was its pegging to Ripple, the rate of which significantly decreased under the influence of external factors.

Starting from 2020, after the next improvement of the system, the XML rate remains stable, with a weak upward trend. The main indicator of the stability of a cryptocurrency is its ratio with the rate of the US dollar, so, at the end of the past year, the increase in the rate of electronic coins relative to the US currency was 20-22%.

IS IT WORTH TO INVEST IN STELLAR?

Before investing in a project, a potential investor should study all the possible advantages and disadvantages of the Stellar system.

advantages and disadvantages of the Stellar systemThe pluses include:

  • A large amount of currencies and cryptocurrencies available for transactions;
  • High speed of information processing and financial transactions;
  • Lack of mining;
  • The ability to get quick access to the system from anywhere in the world.

Cons of the system:

  • Deficiencies in the operation of the security system. When a potential threat arises from the side of hackers, the operation of the entire system is blocked, and not its individual node;
  • Low income from cryptocurrency trading;
  • A number of limitations that complicate the work of a decentralized network.

Due to the low cost of services for financial transactions, financial institutions cooperating with developing countries in Africa and Asia use Stellar's services. Among the large corporations with a worldwide reputation, Stellar partners are the Amazon trading platform and the IBM corporation.

I might pump, but I don’t dump,” Ilon Musk said on a panel about bitcoin. “I definitely do not believe in getting the price high and selling or anything like that

Despite a number of constraining factors, the popularity of Stellar remains at a consistently high level. Due to its reputation and progressive approach to work, the XLM system is becoming more and more in demand in the work of serious financial institutions around the world.

If you would like to know more about the most popular cryptocurrencies feel free to check out more information on our website. Our platform hashbon.com has a convenient multi-currency wallet with an exchange function. Hashbon provides cryptocurrency payment services for businesses and individuals.