Non-Traditional Staking Option for Lumens Widely popular and mainstream, Ripple still meets a worthy opponent in XLM, frequently outperforming it. Right now XLM’s greatest competitor is Ripple (XRP). These factors make Stellar tough competition for its competitors. The cost of services is also low in addition to the platform being highly accessible and user-friendly. The technology and services offered at Stellar are state-of-the-art. This is considerably low and makes the Lumen highly competitive against banks and remittances. Affordable Transaction RatesĪs mentioned earlier, Stellar charges a minimum transaction commission that is only 0.00001 Lumens. They use smart contracts that are the safest and most reliable in the industry today. Stellar is not only strategic and intentional about partnerships, but it is also serious about its contracts. The most notable partnership made by Stellar was with IBM’s Blockchain World Wire. All these connections are made to enhance the users’ experience by making the coin stronger and more affordable. Throughout the time Stellar has been active, it has prioritized making meaningful and strategic partnerships. With faster transactions, XLM can have a greater volume of trades. Therefore, all transactions on the network are faster than they would be on other platforms. A consensus algorithm is used instead, making each transaction take less than a few seconds. The Stellar Consensus protocol relieves each user of the platform from the need to confirm each transaction they make on the network. The Stellar platform has also done a lot of work to make sure that its conditions favor the price of the Lumen as positively as possible: The Stellar Consensus Protocol However, the other factors that play a role in its price are equally important to understand. All these amazing benefits are only possible because of Lumen.Īs with any cryptocurrency, the price of the Lumen is primarily driven by speculation. About the previous point of keeping the platform secure, these conditions make it harder for scams to flourish. A minimum of 0.00001 Lumen is needed for a transaction, and only 1 Lumen must be possessed by traders for their accounts to remain active. Since it was a built-in coin, it allowed Stellar to minimize transaction costs. This security measure has been criticized as being unideal, but it serves its purpose well for Stellar.Īnother positive effect that the Lumen created for the Stellar network was reducing costs. The Lumens also allowed transactions to be completed in less time, and with greater efficiency. Of course, the Lumen does have numerous other uses, but its role in improving security on the Stellar Network was the most important. The Lumen increased security by limiting the number of tokens an account needed to remain active. To control the security and privacy issues, the Lumen was created. It happened because increased ease of use made the platform susceptible to spam and abuse. This vision of user-friendliness would inadvertently lead to the creation of the Lumen cryptocurrency. The team that developed Stellar also wanted to make the platform as accessible and easy to use as possible. But one of the best things about the platform is that traders are only charged 0.00001 XLM for transfers.Īll this is possible because Stellar was built to be an online representation designed to be used for both local and digital currencies. Like XRP, XLM is suitable for fund transfer, smart contracts, and DeFi creation. XLM was first used in 2014 and has had 8 years to establish itself in the industry. Although the Stellar Network did not intend to create it in the beginning, the network’s activities naturally led to its development. Stellar Lumen is a new cryptocurrency that has gained more attention among crypto enthusiasts.
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