The Past, Present and Future of the Stellar Cryptocurrency. How Was It and How Will It Be?
There are quite a lot of cryptocurrencies in the world, and they were created for different purposes. Some are needed in order to replace fiat money and oust all their competitors from the market, others are needed in order to carry out multicurrency transactions around the world. For example, the Stellar cryptocurrency, thanks to its unique technology, is used as a connection between various digital coins when direct exchange is not available.
As a fork of the Ripple cryptocurrency, Stellar was able to abandon the dubious decisions of its "parent" and its developers. An interesting fact is that the Stellar tokens received their own name only a few months after the rebranding, at first their labeling was identical to the parent one, which probably led to various inconveniences more than once. The proper name received by the Stellar coins is Lumen, from the Latin "light", and the trade designation is XLM.
Stellar immediately received an open protocol and a transparent issuance procedure: the initial one hundred billion tokens, the impossibility of mining new coins, one percent inflation, the transfer of a quarter of the issued coins to a group of non-profit organizations and the preservation of only five percent inside the system in a "canned" form so that developers it was possible to provide from these tokens the operating costs for the development and subsequent maintenance of the platform.
But the catch of the whole situation was that the blockchain participants who decided to purchase such large volumes of tokens were obliged to hold them in their hands for five years - a decision truly unprecedented for a market where investors are raging trying to bring the laws of the traditional exchange game here, but not it was here ...
What happened to the price of Stellar and what to expect?
In the beginig the cost of the coin was only $0.06, and then, in the spring of 2017, it completely collapsed to 0.01. In the fall of 2017, Stellar coins began to be sold on more and more new exchanges, and in addition, information appeared that the notorious IBM company was going to cooperate with the project to create a global transaction system.
Taking this information into account, investors began to show interest in the new cryptocurrency, and already in December, when the cryptocurrency market was experiencing rapid growth, and popular digital coins were breaking all records, the cost of Stellar increased in 20 times. In early 2018, many crypto investors were clutching their heads due to the recession in the cryptocurrency market. This defeat affected all cryptocurrencies, except Stellar. XLM price has risen to 70 cents. Today, in terms of market capitalization, cryptocurrency ranks 8th in the world. Many agree that Stellar has good growth prospects, as in fact it is a more decentralized, reliable and convenient alternative to Ripple, and partnerships with many companies only add weight to this cryptocurrency. The most optimistic forecasts promise a price will increase up to $10 and above in the very near future. However, whether this will happen or not is difficult to give a 100% guarantee, but you can always find out about XLM price prediction and further development of this currency on the internet. Stellar definitely needs to be on your list of long-term investments, but the heaps of gold that investors so often expect from cheap but promising coins are not always expected.
Assets in the form of a digital token in the "star network"
One of the unique features of the Stellar network is its practical ability to create markets based on all types of financial instruments. In the so-called "star" network, you can create any asset in the form of a digital token. This allows you to exchange currencies, securities, raw materials, or even create tokens used in fundraising through ICOs.
This system also has Anchored Trust Organizations that accept deposits that are issued in the form of digital tokens. When paying for a specific asset from Anchor, the corresponding tokens are destroyed. In theory, any organization can integrate their services with this network using a ready-made server bridge.
It should be noted, however, that the structure of the Stellar network is only partially decentralized, which ensures its high scalability and extremely fast transactions at very low, close to zero, fees. However, this system is certainly not in direct competition with decentralized networks such as the bitcoin blockchain, however, it also gives hope for a bright future for its investors.
This is a pleasant cryptocurrency to work with, since the time for confirming a transaction on the Stellar network is, on average, from 3 to 5 seconds (similar to the time of creating a block on the network).
The Stellar network is currently capable of processing over a thousand transactions per second (TPS), which is an incredibly cool result compared to, for example, the bitcoin platform (about 10 TPS).