Stellar (XLM) was founded by Joyce and Jed McCaleb in 2014 and has emerged as an alternative to asset transfers. Lumens, the crypto currency of the system, was launched 1 year after Stellar’s debut. Information about ” What is Stellar Lumens (XLM) and how does it work?” is in rest of the article. Information about Ripple, you can browse here.
What is Stellar Lumens (XLM) and how does it work?
Stellar is a distributed and open code payment system. Its main purpose is to provide international asset transfers between banks. When international asset transfers are made through banks, it becomes useless in terms of both time and cost. With Stellar (XLM), the goal is to make these asset transfers fast and at low fees.
Stellar (XLM) makes these transfers using decentralized servers and distributed ledger technology. It is transferred much faster than Bitcoin and Ethereum systems. Although Stellar originated for asset transfer purposes, it is also possible to create and execute smart contracts in the multi-tier Stellar system. Thanks to this facility, new tokens can be generated and transferred on the Stellar network.
What is the difference between Ripple (XRP) and Stellar?
Both Stellar and Ripple systems set out to make asset transfers fast and cheap. When Ripple launched in 2012, its aim was to rival major money transfer companies. It aimed to be an alternative to real money transfer tools. McCaleb, co-founder of Stellar, left the company after problems with Ripple management and founded Stellar.
Ripple has a more centralized structure than Stellar. All Ripple transactions and balances are in-house and released by the company. While Ripple aims to partner with major banks, exchanges and payment companies, Stellar aims to bring this service to people who cannot access banking services.