What is Stellar and Stellar Lumens (XLM)?

Stellar is an open source and distributed financial infrastructure permitting world wide fast and secured transactions.

It has been developed by the idea an international community needs a world wide financial network enabling access for everyone. It aims to establish and develop an international network creating stability and taking away uncertainties (related to inflation of traditional currencies).

Or as quoted from the website:

“[….]SDF (Stellar Development Foundation) and Stellar seek to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered.[…]”

“Reliable money is something that many of us take for granted. But in lots of places the local currency is uncertain and you can’t count on banks or the government. From afar, runaway inflation or changes to monetary policy feel like abstract problems, but they can devastate families as surely as natural disasters.”

Stellar Lumens (XLM) is the token of the stellar network. The tokens themselves play a unique role where it concerns operations on the network. They can be acquired on a variety of cryptocurrency exchanges.

Stellar Lumens serves as “the credit” for the assets held on the network. The tokens are used in order to move or hold money and serve to pay the transactional fees (which can only be paid in Lumens. The median fee on the network is about a millionth of a US dollar.

Why does it require Stellar Lumens and not any other currency like traditional systems?
The reserve of Stellar Lumens is implemented to minimize transactional spam. It makes creating hundreds and thousands of fake accounts, or establish millions of pointless transactions, unprofitable. It is a safeguard against fraud.

Stellar Lumens also increases liquidity of cross-currency payments. It functions as an intermediate asset (also called bridge asset) in order to get the best exchange possible.

In short:

Stellar Lumens (XLM) and the Stellar Network make sure you have “the correct bang for your buck”.

For more information check out here how it works.

Opinion and analysis.

Stellar Lumens and the Stellar network are a token and community which deserve a lot of focus.

It provides an answer to the international (financial) market in the form of stability and safe, streamlined cross-continental transactions.

“The correct bang for your buck”.

It helps people worldwide to escape inflation by investing their assets into much more stable assets.

It also helps people travelling the world to quickly free-up their assets in their native currency and transfer it (extremely cheaply, i.e. for a millionth of a dollar in fees) to the currency needed.

It can help people, like Venezuelans, to escape economic and financial collapse of their native economy (due to hyperinflation of their currencies).

People wanting to protect their assets, people who travel a lot and people who NEED fast and safe international exchanges do best to make use of the platform Stellar offers.

From an investment perspective is Stellar Lumens (XLM) a safe asset to have due to its built-up and possibilities. The MAJOR reason why I highly advise in favour of Stellar Lumens is due to its exchange possibilities. Its ability to permit the owner to change currency and protect his acquired wealth by “escaping native bad economy” and investing in much more valuable and stable currencies and economy.

The whitepaper can be found here

The official website and community can be found here

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