An Improved Version of Ripple or Another Meaningless Fork? A Detailed Review of Cryptocurrency Stellar

Since January last year, the pessimistic mood prevails in the cryptocurrency market: almost all coins have lost from 70% to 90% of their own peak values, and investor interest in digital coins has significantly declined. But many people still wait for the next bull market. Obviously, the flagship of the industry Bitcoin most likely will not be able to show x1000 to the current value, so investors think in what coins it is best to invest their money today to get a good profit in the future. In today's article, we will talk in detail about such cryptocurrency as Stellar lumens, find out what it is, what prospects it has and whether it is worth investing in it.

How did the Stellar cryptocurrency form?

According to a large number of cryptocurrency experts, this digital coin is a significantly improved version of the well-known Ripple project. Recall that the global platform Ripple was founded in the distant 2012th year. A huge number of investors and traders drew attention to a cheap and very useful token, which certainly has good chances for a bright future. But, despite all its advantages, the project had certain disadvantages:

• Ripple Labs (the creator of XRP) is a commercial organization whose main goal is to obtain its own benefit, and not to take care of the comfort of ordinary users.
• Ripple Labs owns most of the XRP tokens, for which reason it can easily arrange rate manipulations.
• This project is contrary to the main principles of the digital economy, the fact is that the Ripple platform is centralized, and its source code is closed to prying eyes.

The creators of the project listened to the comments of users and promised to correct the shortcomings described above. The first thing that needed to be done was to correct the distribution system of tokens and open the source code of the product. As history has shown, the first point remained unfulfilled, but there were some changes in the second. Since 2013, the company has made the source code of its product publicly available. But, unfortunately, this could not fix the main problems of the platform, so two Ripple developers went to radical measures and carried hard fork of the coin, as a result of which a new project Stellar appeared.

A brief description of the project Stellar

• The coin development company is a non-profit organization the Stellar Development Foundation. It is important to note that the developers of the coin have no influence on it.
• The source code of the project was initially open.
• All reporting documentation that is related to the activities of the fund is available in the public domain for everyone.
• 25 billion tokens (that is, a quarter of their total number) were transferred to various non-commercial organizations, and another 5 billion were left in the system (their main purpose is to pay for various transaction costs).
• To prevent manipulation of the rate, the developers have created a special contract. It limits those users who have a large number of coins, from the sale of their own assets for 5 years.

Immediately after the fork, the system used the eponymous Stellar token, but in 2014 there was a large-scale update of the project. The cryptocurrency was renamed to Lumen (XLM), and the platform itself began to look like what we see now.

The basic principles of Stellar

By and large, Stellar is a decentralized platform that works through blockchain technology. With it, users have the opportunity to share various assets. The coin plays the role of the exchange unit. How does this work? For example, you have a certain amount of BTC and you need to transfer them to another person in the form of ETH or any other coin or fiat. In order to accomplish this, you only need to register on the Stellar platform, enter the necessary details and make an exchange. XLM tokens are only needed to pay the platform fee, which is only 0.0001 XLM. This principle of work became a reality only because of the presence of the project’s own internal decentralized exchange. It includes a special SCP algorithm. The blockchain of the coin contains all the information about transactions in the entire history of the project.

Strengths and weaknesses of the project Stellar

Like any coin from the cryptocurrency list, Stellar has both advantages and disadvantages. The relative disadvantage of the project is the mining stellar impossibility. Though this coin has a lot of advantages:

• full equality of all participants in the system;
• high transaction processing speed (project throughput is more than 1,000 operations per second);
• transparency (stellar has open source code);
• support for a huge amount of cryptocurrency, as well as fiat money for exchange;
• A high level of security is achieved due to the blockchain technology and the availability of autonomous peers.

How to buy cryptocurrency Stellar?

As you already understood, it is impossible to mine the coin, which means that the only option to become the owner of XLM is to buy it. The most convenient way to purchase is a cryptocurrency exchange (Kraken, Bittrex, Poloniex and, of course, Binance). It is also possible to purchase tokens using various cryptocurrency exchangers.

Does it worth to invest in Stellar?

According to experts, this cryptocurrency can have a very good future, as its technology solves a very important problem - fast and cheap exchange of cryptocurrency and fiat money. At the time of this writing, the Stellar price is $0.108802 USD for one coin. Cryptocurrency takes 8th place in the global ranking of Coinmarketcap, the capitalization of the coin is $2,061,250,143 USD. Fundamentally, this project is very valuable for the industry:

• Stellar is built on a unique technology, with which you can quickly, cheaply and reliably perform exchange operations with various assets.
• Already now, many companies are actively introducing Stellar in their business and their amount is actively expanding. Since 2017, representatives of Stellar have entered into a partnership with IBM, the largest corporation in the information technology market.

The development team is constantly working to improve its product, so this project has a good chance of success. For this reason, investing in Stellar is a fairly balanced decision. But it should be understood that the cryptocurrency market is very young and unpredictable, and this should be taken into account before investing your money there. Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/