The Stellar network consists of a set of supposed “anchors” which any particular user can upload their supports on. These anchors act likewise to a bank or PayPal, holding your supports and arising credit to your practical wallet instead. At the same time, a receiver’s practical wallet in another nation can now accept this credit, which is automatically converted to any upheld fiat banking such as USD, AUD or EUR.
Lumens are what creates the sell probable in the first place. The uploaded supports in one banking are first converted into these coins, followed by the acclimatisation into a receiver’s preferred currency. Thus, it becomes much easier to sell and send several currencies anywhere in the world, with an combined reward of faster sell at low fees and no intermediaries involved. Today, the list of partners of the Stellar network includes an augmenting number of financial institutions and companies which started providing support for it.
In further to facilitating sell between several currencies, Lumens are used for the origination of user accounts and remuneration of sell fees. Their low cost is what sets Stellar detached from the competitors – the bottom price is rather symbolic, amounting to 100 stroops, with a stroop being the smallest section of Lumen silver (0.00001 XLM). Similarly, you will need 0.5 Lumens as a smallest comment balance.
Stellar does not support mining of the coins. It employs a accord system called Stellar Consensus Protocol (SCP) in which sell are authorized by using a apportionment of the network. It is built around the proof of stake model.
Originally, about 100 billion Lumens were created, with almost 19 billion of them in dissemination as of Oct 2018. To forestall inflation, the number of newly released Lumens on the Stellar network is increasing by 1% on yearly basement and combined to the applicable pool. At the moment, the silver marketplace capitalization stands at USD 4.1 billion, with ancestral high reaching USD 15 billion in Jan 2018.
Lumens are easily available and tradable on vital cryptocurrency exchanges such as Kraken or Bitfinex.
Article source: https://cryptonews.com/coins/stellar/