Although it was created in 2014, Stellar Lumens (XML) is still not as popular as Bitcoin, Ethereum or Ripple. However, its price skyrocketed at the end of last year and now it promises to be one of the fastest growing cryptocopes for this 2018. But what does it propose or what makes this altcoin so special? This is his story.
Part of Stellar's success is due to the developers behind it. Mainly Jed McCaleb, who is the programmer who developed Ripple in 2011 but then left the company in 2013. He is also known for having created eDonkey2000, one of the largest shared file networks of his time, and, later, Mt. Gox , the first Bitcoin exchange, which then sold and ended up ceasing operations in 2014. Another of its co-creators is Matt Mullenweg, the web developer and creator of WordPress.
What makes Stellar Lumens different from other cryptocurrencies and / or platforms?
Unlike Bitcoin, whose purpose is to replace the traditional financial system, the big difference of Stellar Lumens (XML) is that it was developed with the purpose of helping in the operations and financial transactions of any type of currency and with a much lower percentage . It is exclusively aimed at allowing banks and individuals to transfer value or store assets. The company specifies on its website:
Stellar is a distributed, hybrid, completely open source block chain. It is an infrastructure that exists to facilitate cross-asset value transfers, including payments.
This digital financial platform manages its own chain of blocks, the Stellar network. This allows you to offer lower commissions for transactions between cryptocurrencies, as well as making changes to dollars to Bitcoin extremely quickly and inexpensively.
To change dollars for Bitcoins, the most common is to have to make a series of steps somewhat complicated. In the case of Stellar, these transactions can be made in a matter of two to five seconds on average since the money entered into the platform is first converted into its own cryptocurrency, Lumens, and then Bitcoins.
Boom
Investors have been looking for other profitable crypto currencies other than Bitcoin, and one option has been Ripple. Considered the cryptocurrency of banks, it is currently the third most valuable digital currency in the market.
Seeing the growth of Ripple, other investors looked for a similar cryptocurrency. Since Stellar is from the same developer, they share features such as fast border transactions. In addition, the structure of the Stellar network is very similar to the Ripple network. Although one of the advantages of Stellar is that it not only provides a network for banks, but also for people. It also allows you to launch initial offers of ICO coins
Today, it has the backing of 10 companies specialized in sending money and the support of more than 30 banks in the world. One of them is IBM, which announced last October that it would use Stellar to be able to partner with banks and thus provide cross border payments between countries in the South Pacific. The company has indicated that up to 60% of "cross-border payments in retail currency brokers" in that region could be processed this way this year.
Actually, it has barely been fired since the end of last year. On January 3, 2018, it reached a record high of $ 0.913, according to Coinmarketcap. It is now among the ten best valued cryptocurrencies and has a market capitalization of more than 7 billion dollars.
Future
Last Monday, March 5, Jeb McCaleb gave a talk during the Fintech Week in Tel Aviv. When asked about the fork with Ripple, according to the Finance Magnate, he replied: "I left Ripple in 2013. They did not take it in the right direction, what we wanted to improve is the way in which the tokens are distributed. A for-profit company, can you imagine the Internet as a profit? It's a mistake. "He added:
Therefore, Stellar was established as a non-profit organization. I want to deliver Stellar to as many people as possible. If you are a developer, you can get tokens for a project, and if you have larger projects, you can get more tokens.
However, he acknowledged that the system is not yet technologically ready in terms of digital wallets, among other things. "We're in a kind of dot.com bubble, we just want to make sure we're real enough when the accident comes," he said.
According to the monthly survey that the Finder.com personal finance website performs to Fintech leaders and experts, its prediction is that the two cryptocurrencies that will become more popular this 2018 are Ethereum and Stellar Lumens and that the market limit of Stellar would rise to 183 billion dollars by the end of the year. Currently, Bitcoin has a market limit of 233 billion dollars.