This is one of the major competitors to cryptocurrencies aiming at providing solutions to the banking industry for faster and cheaper transactions.
According to the whitepaper, this platform achieves consensus by what is called the Stellar Consensus Protocol (SCP). It uses quorum which is referred to as decentralized nodes (where nodes choose trust). What they do is to agree or create dynamic quorum slices – a set of agreement that is stored permanently on the ledger and does not change. Which comparatively helps them achieve 1000 transactions per second. This is one of the main reasons why Stellar investment might be profitable.
More so, we understand that compared to the proof of work and proof of stake consensus types, the SCP is different and works to promote organic network growth. What this means is that it uses a set of computing principles, complex in the core, but sufficiently simplified on the outside to encourage the participants of new members in the cryptographic financial system – cryptocurrencies.
The two main important attractive features for the adoption of decentralized models is security and privacy. However, there comes the need for scaling to accommodate a wider pool of users who are unintended, underserved and unbanked individuals. Other features include multisigs and smart contracts. And these are being provided by the Stellar Lumens platform.
To buy XLM is quite simple as it is listed in over 20 cryptocurrency exchange platforms, making it gain some grounds too and it is being paired with BTC, ETH, USDT, IDR, USD, EUR on different exchanges. But it has a trading volume percentage of 17 to 30% on major exchanges.
To buy, first you will need the pair XLM is traded with, so you might have to buy BTC or ETH or buy directly using your credit card. You simply need to register on any of the exchange listing the asset, then purchase using BTC or ETH as the case may be.
Once you’ve bought the coin, you have the option of selecting from the following to store your coins: Desktop Wallets, Mobile Wallets or Web Wallets, if you choose not to leave it on the exchange (although, the exchange wallet is kind of like the web wallet).
As you might have guessed, each of these options has advantages and disadvantages. Storing on the desktop almost feels like a cold storage, but you would need to sync with the server before you can make transactions or update the ledger.
Mobile wallets are cool if you need to make transactions on the go, simply open up the app on your mobile device and transfer or receive funds directly from the app. As for the web wallets, they are quite tricky sometimes, in the sense that if you fall a victim of phishing websites, your login details can be compromised.