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- 1 Stellar (XLM) Blockchain is a completely decentralized open source network mainly introduced to enhance transaction speed and low charges crypto payments.
- 2 All the transactions are stored on the blockchain networks enabling users to view every activity over the web.
The blockchain network is evolving continuously. With the advancement in the blockchain network and digital assets utilization, the demand for faster, more secure, and cheaper platforms also upsurge. Stellar platform, a public network accountable for storing and exchanging cryptos, was introduced by Jed McCaleb in 2014 and is managed by Stellar Development Foundation (SDF). The platform is compatible with the cryptocurrency XLM and is the 8th largest digital asset in the ecosystem.
How Does Stellar Network Work?
Before understanding the overall working and effectiveness of the Stellar payment network, it is significant to know the key purpose behind the idea. The motive is to develop a financial system using Stellar lumens to make money transfers more convenient, faster, and cheaper. The process uses lumens for transactions with a minimal transaction cost of 0.0001 XLM.
Around 100 Billion lumens were created by the team at the inception of Stellar and it took just 6 seconds to complete the transaction. Another factor on which the working of the platform relies is the anchor partnership which relates to the entities that offer a line of credit to the users who want to use the respective network. The anchor is accountable for transferring the amount in the lumen required to complete the transaction. The platform also supports micropayments across the world and can easily be integrated into business operations. XLM is considered among the most friendly and convenient form platforms for payments that boost the network’s popularity in the crypto landscape.
Apart from the functioning, the continuous evolution and growth of the platform represent a bright future of XML in the cryptocurrency landscape. The network has gone through several major protocol improvements over the years. In 2019, protocol 11 was released to increase the scalability and network efficiency. Similarly, protocol 12 and 13 was released in 2020 to make the platform unique from other available networks. Protocol 12 introduced new payment options allowing users to make numerous asset payments in a single transaction. Protocol 13 on the other side, added features like control on assets authorization, multiplexed accounts, and fee bumps.
What Future Does Stellar Hold?
However, it is hard to predict the future of the platform considering the high level of competition in the crypto marketplace. It can be said that continuous evolution and developments suggest a beaming future for Stellar. Considering the current situation, the current value of Stellar is $0.159 with a trading volume of $296,095.02 and a market cap of $4,359,618,984. The price of the platform increased up to 19.90% in the past few days representing the outstanding performance of XML in the global cryptocurrency market when compared to other smart contract platforms. Further, XLM price prediction is to reach $0.32 in 2025 reflecting the continuous growth of the platform.
Conclusion
Stellar blockchain is an open-source payment network introduced to offer faster and cheaper payment modes for crypto and related assets. The platform is under continuous development and has the potential to become a leading payment network in the cryptocurrency landscape.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
