Stellar leaves springs
After the Stellar-Coin XLM conjured up one of the strongest performances of all coins on the crypto parquet in May, it falls below the 3-month line in June. In the past two weeks, the share price has fallen by more than 10 %. Is this a correction or is the project struggling with serious difficulties? We take a look at the current events in the Stellar House.
Stellar with difficulties
At the time of writing, Stellar is quoted at USD 0.072. Last month’s profits shrink and Stellar slides to 13th place in the crypto charts. Cardano, Crypto.com Coin and Tezos have already passed by, while Cheinlink and Monero lurk. Of course Stellar, like most Altcoins, follows the market leader. However, there is currently a lack of news to record own price outbreaks. But the promising concept behind Stellar is undisputed…
What is Stellar?
Stellar was founded in 2014 and promotes a novel transaction system for various assets. By using Stellar platforms, transactions are to be executed faster and, above all, more cost-efficiently. The transaction costs are less than one cent. An enormous advantage in international comparison.
What are lumens?
Lumens are currency of the Stellar Foundation. The current supply is approximately 50 billion units, of which more than 20 billion are in circulation. The average transaction time of Stellar Lumens (XLM) is 3.5 seconds. 100 billion XLM coins have already been “pre-mined” before the 2014 Stellar launch, and no further coins can be mined. Again and again Stellar caused a sensation in the crypto space with gigantic token burns and ludicrous air drops.
Stellar Lumen is based on the sophisticated Stellar Consensus Protocol (SCP). The SCP consensus thus ensures decentralization, low latency and high security standards. International nodes confirm transactions and update the block chain protocol in the Stellar Ecosystem every two to four seconds. In the network system, all actors (banks, private individuals, institutions) are at the same level. Unlike other block chain systems, the Stellar Consensus works on the principle of the so-called “Byzantine Agreements”. A certain minimum number (“quorum”) of nodes is already sufficient to reach a consensus. A certain percentage is therefore sufficient to continue the transaction chain of the Stellar Network.
At the head of the Stellar Foundation is Jed McCaleb, one of the most dazzling characters in the entire blockchain world. McCalebs already developed several file sharing networks (eDonkey, Overnet) at the beginning of the millennium and later founded Mt.Gox, then the largest crypto exchange worldwide. The exchange now traded over two thirds of all available Bitcoins. But in 2014 hackers stole more than 800000 Bitcoins and the stock exchange had to close in the course of a crime-like scandal. McCaleb, to whom many people still blame for the demise of Mt. Gox, continued to work on the development of the crypto currency Ripple.
Stellar’s connection to Ripple
Ripple developed into a unique success story under the command of Jed McCaleb, Chris Larsen, David Schwartz and Arthur Britto. The “banks’ Bitcoin” revolutionized the global transaction business in terms of high speed and low costs. However, after disputes with Chris Larsen, McCaleb was forced to turn his back on the company. Through a hard fork, a splitting of the ripple block chain, the crypto currency Stellar Lumen was created.
Community votes on innovations
This week the Stellar Community is discussing the questions of what kind of control one wants to grant to the stock exchanges in the future. For this purpose, the Stellar Nodes are to decide by vote which authorizations exchanges and other institutions in the network are to receive. In a contribution, the Stellar Development Foundation expresses itself as follows: “Often issuers of regulated assets want customers to be able to trade their assets, but they also need to exercise a high degree of control over who can hold them, how much they can hold and under what conditions they can sell or buy more”.