Stellar XLM: The Rising Star in the Cryptocurrency Sky

1- XLM
  1. The genesis of Stellar and its separation from Ripple
  2. Stellar’s Mechanism and Use Cases
  3. Stellar’s Key Features
  4. Where to buy and store Stellar (XLM)
  5. Stellar’s Ecosystem
  6. Stellar prospects
  7. Conclusion

Recently, there has been a significant shift in the financial landscape, led by digital currency and blockchain innovations. Stellar stands out as a versatile and unique platform among various networks that aim to make financial services and access universally available. The goal of the Stellar network is to unite all global financial systems in a single framework. Let’s explore what positions Stellar as a critical entity in both the FinTech and Blockchain domains.

The genesis of Stellar and its separation from Ripple

Jed McCaleb, who had previously co-founded Ripple, partnered with Joyce Kim, a former lawyer, to launch Stellar in 2014. The duo decided to part ways with Ripple primarily due to diverging visions.

While Ripple aimed to serve large financial institutions, Stellar focused on serving individuals and expanding into emerging markets. This defining split allowed Stellar to carve out its own specialized role in the crypto world. Since the split, Stellar has become one of the fastest growing and most promising initiatives in the digital currency space.

Stellar’s Mechanism and Use Cases

Designed as an open-source blockchain platform, Stellar seeks to make financial services universally accessible by linking banks, payment systems, and people. The network relies on its native cryptocurrency, Lumens (XLM), to enable multi-currency transactions.

The Stellar network operates on a decentralized set of servers located around the world. These servers synchronize every 2-5 seconds, ensuring that transactions are both fast and reliable.

Stellar serves a multitude of purposes in the modern landscape, ranging from:

  • Global Money Transfers: Companies like IBM and Deloitte capitalize on Stellar’s network to enable efficient and low-cost transactions across borders.
  • Assets Tokenization: through Stellar, assets like artwork and property can be seamlessly converted into tokens, which simplifies their sharing and distribution.
  • Expanding Financial Access: Ventures like SureRemit use Stellar’s technology to offer essential financial services to populations without traditional banking access in underdeveloped regions.
  • Open-Source Finance (DeFi): Within the Stellar ecosystem, a variety of DeFi initiatives exist that extend services like borrowing and lending.
  • Corporate Loyalty Programs: The Stellar platform simplifies the process for businesses looking to design and administer their own rewards programs.

Stellar’s Key Features

A unique feature of Stellar is its alternative consensus algorithm, as opposed to traditional proof-of-work methods. This setup allows transactions to be completed faster and more resource-efficiently, making it well suited for micro-transactions and cross-border money transfers. 

“Anchors” act as intermediaries, connecting different currencies to Stellar’s blockchain, which speeds up and reduces the cost of moving money across borders. This capability also enhances Stellar’s adaptability to accommodate different types of assets, including both cryptocurrency and fiat forms of money.

Below are key attributes that contribute to Stellar’s competitive advantage:

  • Non-centralized structure: rather than operating from a centralized hub, Stellar’s architecture is distributed, eliminating any single point of failure.
  • Fast transactions: Stellar’s infrastructure is designed to complete funds transfers in as little as 2-5 seconds, making it an optimal platform for real-time global transactions.
  • Economic Viability: with a nominal transaction fee set at 0.00001 XLM, Stellar is not only affordable, but also accessible to economically underserved populations.
  • Asset Versatility: Stellar’s infrastructure is flexible enough to facilitate transactions in a wide range of assets, from conventional fiat currencies such as the US dollar to various cryptocurrencies.
  • Simplified Smart Contracts: while less complex than platforms like Ethereum, Stellar supports basic smart contracts that enable a range of secure and automated operations.
  • Inherent asset market: Stellar includes a native decentralized exchange, simplifying the fast and efficient trading of a wide range of assets.
  • High throughput: Stellar’s network architecture is capable of supporting a high volume of transactions per second, allowing it to scale to meet the needs of a global financial ecosystem.

Where to buy and store Stellar (XLM)

Stellar can be purchased on various cryptocurrency exchanges such as Coinbase, Binance and Kraken. 

As for storage, there are multiple options, ranging from hardware wallets (Trezor, Ledger) to downloadable (Lobstr, Keybase) and online wallets. 


A popular online storage solution for XLM is the browser wallet, which can be found at It has the following features that make it an ideal choice for storing lumens:

  • Fast and intuitive interface: Stellar web wallet is designed for convenience and ease of use.
  • Secure storage: this is a non-custodial wallet – the secret key is only stored by the user.
  • Almost instant transfers with minimal fees.
  • Direct interaction with the blockchain: access your wallet with a secret key, without intermediaries.
  • Real-time balance check.
  • Ability to create any number of wallets.
  • No KYC or personal information.
  • Auto-synchronisation: allows you to easily switch between devices with automatic balance updates.
  • 100% adaptive design: the wallet is optimised for use on any device.

Stellar’s Ecosystem

Stellar’s ecosystem is rich with diverse projects and partners. From payment gateways to decentralized finance (DeFi) applications, Stellar offers a comprehensive suite of services. To see the projects and partners that contribute to Stellar’s ecosystem, visit Stellar’s Ecosystem page.

Stellar prospects

Stellar has great potential for long-term growth, especially given its partnerships with major technology companies and financial institutions such as IBM and MoneyGram.

However, like any other cryptocurrency project, Stellar faces a number of risks, including regulatory changes and competition from other blockchain platforms. Despite this, Stellar remains one of the most promising cryptocurrency projects to date, thanks to its unique features and broad application.


Stellar isn’t just another blockchain network; it’s an entire ecosystem aimed at making financial systems more inclusive, efficient, and interconnected. With its unique features and robust ecosystem, Stellar is undeniably one of the most promising platforms in the blockchain space today. As it continues to evolve and grow, it is expected to play an increasingly important role in shaping the future of global finance.

All the photos in the article are provided by the company(s) mentioned in the article and are used with permission. 

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