Stellar (XLM) is emerging as one of the digital currencies that is attracting attention. Built as a fast, efficient, and decentralized cross-border payment protocol, Stellar has earned a reputation as a platform that facilitates global money transfers at low fees.
In this article, we will understand more deeply about Stellar, from its background to its uses and potential in the future.
What is Stellar (XLM)?
Stellar was founded in 2014 by Jed McCaleb, a figure who was also involved in the formation of other well-known crypto protocols such as Ripple.
Stellar (XLM)'s ultimate goal is to provide a secure, open, and inclusive global payments infrastructure for everyone, especially those underserved by traditional financial systems.
Stellar uses blockchain technology to facilitate cross-border transfer of value. However, in contrast to Bitcoin which focuses more on development activities and storing value, Stellar is aimed more at direct payments and asset exchange.
This is done through a peer-to-peer network that allows users to send and receive a wide variety of digital assets, including fiat currencies and crypto tokens .
History of Stellar (XLM)
The history of Stellar (XLM) began in 2014 when Jed McCaleb, a software developer and co-founder of Ripple (XRP), decided to start a new project.
McCaleb left Ripple due to differences in vision and founded the Stellar Development Foundation (SDF) with the goal of creating a more decentralized and inclusive payments system.
Stellar was originally designed as a fork of the Ripple protocol, but later underwent significant updates and changes. In 2015, Stellar launched with a new protocol, allowing users to create a more open and low-cost global payments network.
In the following years, Stellar continued to grow and expand its ecosystem. In 2017, Stellar attracted media and investor attention after announcing a partnership with IBM to facilitate cross-border payments using blockchain technology. This partnership helps increase Stellar's visibility and opens the door for more partnerships in the future.
Over the years, Stellar has continued to experience improvements in terms of adoption, partnerships, and technology development. In 2018, Stellar released a new version of its protocol, known as Stellar Core v10.0, with significant security and performance improvements.
Since then, Stellar has remained committed to developing innovative and inclusive cross-border payment solutions. The platform has collaborated with various organizations, including financial institutions, technology companies, and governments, to drive the adoption of blockchain technology and expand access to financial services worldwide.
With a rich history and strong commitment to innovation, Stellar continues to be one of the most promising blockchain projects in the digital payments space. With its focus on financial inclusion and transaction efficiency, Stellar continually strives to create a world where everyone has fair and easy access to the financial services they need.
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Potential Uses of Stellar
Stellar has many potential uses in various industries and scenarios, namely:
1. International Payments
Stellar can be used to facilitate cross-border payments between banks, companies and individuals without the need for intermediaries or high fees.
2. Asset Tokenization
Stellar enables the creation of tokens that represent physical or digital assets, such as fiat currency, shares, or property. This opens the door to the tokenization of traditional assets and the creation of new economies.
3. Remittances
Stellar can be used to simplify the process of sending money to countries in need, such as in the case of migrant workers sending money to their home countries.
Advantages and Disadvantages of Stellar (XLM)
While Stellar offers a number of advantages, it is important to remember that there are also some disadvantages to consider. With a good understanding of the good and bad uses of Stellar, users can make more informed decisions about whether the platform suits their needs and goals.
Here are some of the advantages and disadvantages of using Stellar (XLM).
Advantages of Stellar (XLM)
1. Low Cost
One of the main advantages of Stellar is its low transaction fees. This makes it an attractive option for companies and individuals who want to make global payments without high transaction fees.
2. Transaction Speed
Stellar stands out for its fast transaction speed. Transactions can be processed in seconds, enabling instant payments and exchange of assets.
3. Decentralization
Stellar is a decentralized network that is not controlled by a single entity. It provides high security and reliability as there is no single point of failure.
4. Smart Contracts Programming
Stellar allows users to create and execute smart contracts, enabling various transaction types and automation functions.
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Disadvantages of Stellar (XLM)
1. Competition with Other Platforms
Stellar faces competition from other payment platforms, such as Ripple, which also offer cross-border payment solutions. This competition could impact Stellar's adoption and growth.
2. Limitations of Use
Although Stellar has a wide range of potential uses, adoption is still limited. The platform may not yet be widely accepted by companies and individuals, which may limit its growth.
3. Security Risk
Like all blockchain platforms, Stellar is also vulnerable to security risks, including hacker attacks or security gaps in smart contracts.
4. Reliance on Mass Adoption
Stellar's success also depends on mass adoption by companies and individual users. Without widespread adoption, its potential may not be fully achieved.
Conclusion
Stellar has proven itself to be one of the most promising blockchain projects when it comes to global payments and cross-border value transfer.
With low fees, high speed, and a focus on financial inclusion, Stellar plays a critical role in shaping the future of the global financial ecosystem. By continuing to develop its features and forge strategic partnerships, Stellar has the potential to change the way we conduct financial transactions around the world.
How to Buy XLM on Bittime
After knowing what XLM is and how it works, are you interested in buying and investing in this crypto asset? You can do it at Bittime. XLM tokens are available on Bittime in XLM IDR pairs.
Below is a guide on how to buy XLM tokens on Bittime.
- Register an account at Bittime using an active email.
- Complete the identity verification process.
- Once the account is verified, open the Bittime application.
- Select the Market menu or click the graphic icon.
- Select IDR pairing to buy XLM with Rupiah.
- Click 'Buy'.
- Select the order type to use. Limit orders, market orders and stop orders are available.
- Enter the nominal rupiah to buy XLM.
- Click the 'Buy XLM' button.
- A notification pop up will appear. Read it carefully and click 'Confirm'.
- Enter the six digit Transaction PIN.
- The application will display a successful order notification.
Complete guide on how to buy XLM, click here .
Apart from buying XLM tokens, you can also buy various crypto assets such as BTC, ETH, SOL, ADA, AVAX, DOGE, and many others. Don't forget, keep monitoring ORDI, BTC, ETH, SOL price chart movements today to find out crypto market trends on Bittime.
Crypto asset buying and selling transactions on Bittime are easy, safe and instant. Bittime is officially registered and supervised by Bappebti and Kominfo.
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DISCLAIMER : This article is informational and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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