What Is Stellar? The Basics of Stellar

What is Stellar?

What is Stellar (XLM)?

Lumens is the unit of currency of Stellar and represents 1 Stellar (XLM). It is an extremely fast, nearly frictionless payments network based on the Ethereum protocol. It is primarily designed for the transfer of value between two people.

What Is the Stellar Vision?

The Stellar Vision is to bring financial inclusion to everyone and provide an infrastructure for all financial institutions to operate seamlessly.

What Is a “Mark” in Stellar?

A “mark” is the digital representation of money. For example, imagine a person that has an account at a bank that is using Stellar.

How Will the Lumens Be Used?

Lumens will be used as a medium of exchange on the Stellar network, like bitcoin and any other cryptocurrency.

The Basics of XLM

Today we’re going to talk about how you can get involved in Stellar and see if it’s right for you. Stellar’s two operating systems are Lumens, the native currency that you can hold or exchange for any fiat currency, and bitcoin, Stellar’s distributed and multi-user client-server program that allows any Stellar token holder or user to start and operate a fully operational XLM account. At this time, only the native XLM currency is exchangeable with fiat currency. It does allow “staked” tokens — such as Proof of Existence (POE), Stardust (SWT), Omnilayer, and most recently, ZrCoin — to be exchanged for fiat currencies. These tokens are also exchangeable with XLM, but they are different from XLM in a few ways. As a reminder, Stellar is the name of Stellar’s blockchain.

Why Stellar?

XLM wants to create an open financial system for the world. It wants to create a way to send and receive money across different currency exchange systems and financial systems. Most existing systems are inefficient and make it difficult for users to move their money across currencies.

Where Are They?

XLM’s are used in a number of different ways. They are used to send money to each other within the system. They are also used to pay fees within the XLM network, and to earn fees by creating and using the currency.

What Is the Masternode System?

The Stellar Masternode system is unique among cryptocurrency systems. Essentially, the XLM network is divided into “masternodes” and people who participate in the network as a whole.

What are Lumens?

Lumens (XLM) are a form of currency on Stellar. The currency was created in November 2016. Want to learn more?

How does Stellar work?

In layman’s terms, Stellar is all about blockchain tech. Blockchains were first invented to track bitcoin transactions. It’s only natural that they’re the basis for the XLM network as well. Here’s how it works: When you first want to send a transaction, you will first add it to your ledger. With your ledger, you can keep records of all the transactions you have completed. (That means keeping track of how much money you’ve sent/received to/from other users. What a wonderful way to hold on to this information!) When you complete a transaction, you tell the network which users you want to pay, and they add the transaction to their ledger. When you send a transaction, you use the Stellar network to retrieve the information that your recipient needs to complete the transaction.

Conclusion

Cryptocurrencies continue to fly up, pushing prices further out of reach of most mainstream investors. By only considering one factor — the so-called cryptocurrency bubble — however, some people may conclude that bitcoin is overvalued and on the path to a crash. But that isn’t how it works. It’s important to look at the fundamentals and metrics in order to understand why cryptocurrencies have continued to rise. It’s best to base your investing strategy on a basic understanding of the world’s most important asset: money.

Must See: What Is Monero? The Untraceable Cryptocurrency

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