Stellar Insights

Stellar offers users with the ability to send money anywhere worldwide instantaneously at a very minimal cost. The main aim of Stellar is to make the finances accessible to all, especially the individuals who are not able to enjoy the benefits of basic financial institutions like banks.

Lumens (XLM) is used as a native currency by the network, and 100 billion of it was created at the launch. A transaction facilitated by Stellar lumens costs only 0.0001 XLM, and it only takes 6 seconds to complete the transaction.

Stellar assists in cross-border transactions by addressing the concerns related to the same. The major problems associated with traditional transactions are high transaction fees and slow transaction time. The native currency has its value, but the basic purpose of it is to act as a mediator currency and provide conversion between the other currencies.

Furthermore, it is not a centralized platform and works as a non-profit company having altruistic goals of making financial services available to everyone.

To validate the transactions, Stellar uses a consensus protocol that is also referred ‘Federated Byzantine agreement.’ It works on an open membership system, which means that any user can use the function of a validation node and is free to follow other nodes without having to rely on a central authority recommendation.

Blockchain Technology

Blockchain technology is an encrypted database that records data. It is a ledger of any contracts, and transactions that are needed to be recorded independently. This digital ledger is accessible from thousands of computers. Blockchain technology has already started to affect the financial services sector, and the technology has unpinned the digital currency Bitcoin transaction.

Blockchain technology allows the participants to interact directly and make transactions across the internet without the need for a third party. The transactions done via blockchain technology does not share any personal information of the users and creates a transaction record by encrypting the information. Blockchain reduces the possibility of a data breach. In contrast to the traditional processes, Blockchain shares multiple shared copies of the database, which makes it hard for cyber attackers to breach data.

Blockchain has many benefits that include increased time effectiveness because of the real-time transactions and reduced risks of fraud, tempering, and cybercrimes. Blockchain technology is a transparent process with proper records and tracking. Due to the cryptography and decentralized Blockchain protocols, Blockchain technology is highly secure.

Blockchain technology has three pillars, which are decentralization, immutability, and transparency. Blockchain has multiple uses, and it can be used in smart contracts, crowdfunding, governance, file storage, the internet of things, and many more.


Stellar is an open-source infrastructure for distributed payments. It connects people, banks, and payments systems and enables the transfer of funds reliably, quickly, and with limited costs. Stellar Lumens (XLM) is the native asset that operates within the stellar network. XLM plays an anti-spam role.Each transaction has a small fee, which is 0.00001 lumens. The fee acts as a security token, which protects the network against flooding. Anyone wanting to transact on the Stellar network will need Lumens to cover the base fees, which is why everyone using the platform needs to have a minimum balance of 20 lumens to authenticate their accounts.

Lumens also allow the money to move. They conduct transactions involving multiple currencies safely and quickly, especially when the pairs of currencies do not have a direct market to act as a bridge.

Lumen helps in making cross-border transactions faster, easier, and cheaper than the traditional payment services. The exchange of fiat currency to the lumen and vice-versa enables the customers and businesses to send and receive money across the border in less amount of time and fewer expenses.The company has set a cap at 100 billion XLM which are distributed as:

a. 50% for the world through direct signup educational programs.
b. 25% for the non-profits to reach the underserved population.
c. 20% for the Bitcoin program.
d. 5% for the cost occurred in the operations.

Best Stellar Lumen wallets

After buying Stellar Lumens from a reputed exchange, you should always store it in a reliable wallet. Here are few best wallets supporting Stellar Lumens:

Ledger Nano S is a hardware wallet that means they are not connected to the internet, which means they are the safest choice. Ledger Nano S has an O-LED screen which enables users to double-check their transaction through USB cable. The wallet is compatible with Windows 7, Linux, and Chrome OS.

Atomic is a multi-currency Stellar wallet that supports more than 300 other coins and tokens. It has a user-friendly interface, and it fully controls the funds.

It is a non-custodial multi-platform cryptocurrency wallet that is designed to store, transfer, and manage digital assets easily. Guarda currently supports over 10,000 tokens, including BCH, XRP, BSV, BTC, ETH, EOS, etc. All the currencies can be easily purchased inside the wallet via a bank card.

It is a hot/cold wallet depending on the available internet connection for desktop users. All a user needs to do is download and install the wallet for free.


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