Stellar Lumens (XLM) - the controversial founder does not disturb the cryptocurrency

On the one hand, the entrepreneur behind the spectacular collapse of the first large cryptocurrency exchange in the world Mt. Gox, on the other, professor of cryptography David Mezeries from Stanford University. The Stellar Lumens network and cryptocurrency project is full of contradictions, and yet it is becoming more and more successful.

We continue the cycle of the Forex Club portal in which we discuss the most popular and interesting cryptocurrencies in the world. Today it's time for Stellar Lumens, a cryptocurrency that - contrary to appearances - does not want to compete with Bitcoin or other, countless tokens, with ... banking settlement systems and fiat currencies.

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This is due to a number of factors. First of all, the Stellar network is only partially decentralized. In return, it has enormous bandwidth, allowing for a large number of transactions at virtually negligible costs. This is made possible by a web-based platform blockchain and its own cryptocurrency known as Stellar Lumens or Lumen for short.

All in one and constant inflation

Stellar is not only a network and cryptocurrency, but also a platform that allows you to issue your own tokens, ICO organization on cryptocurrency projects and not only and above all the DEX exchange on which you can exchange cryptocurrencies and fiat currencies.

The cryptocurrency Stellar Lumens itself is already inflationary. The inflation rate was set at 1 percent. annually. When the network was launched in mid-2014, there were 100 million XLM units on the market. As at January 21.01.2020, 20, there are already 50 billion of them. Ultimately there will be XNUMX billion.

Controversial founder of Stellar Lumens

Stellar Lumens is the idea of ​​two people. The first is programmer Jed Caleb, and the second is lawyer Joyce Kim. Yes, it's the same Jed Caleb that founded the decentralized eDonkey file sharing network in 2000, and the Mt. cryptocurrency exchange 10 years later. Gox, whose fall was one of the most famous in the history of the cryptocurrency market. The stock exchange had a share in around 70 percent of the entire global cryptocurrency market and after it was sold by Jed Caleb, it turned out that most of the client's funds were not on her accounts. Losses were estimated at USD 473 million. Jed Jed Caleb, however, came out unscathed and in 2012 was a co-creator of the platform Ripple (XRP).

Stellar also has the ambition to stimulate people who today do not have access to banking services and do not use them. When the first 100 million XLM units were created, as much as 25 percent of them were intended for social and economic activation of people who do not even have a bank account.

Technical problems and professor's help

Jed Caleb decided that Stellar would be based on the Ripple platform code. Already six months after its foundation, the first problems appeared. The exchange of information between the nodes was faulty and even an unplanned block division occurred at a critical moment. It was decided to develop their own algorithm. Stellar Consensus Protocol (SCP) was created by cryptography professor David Mezeries from Stanford University. After the upgrade, the performance and network security increased quickly.

Stellar Lumens cryptocurrency is also one of the cheapest on the market. The fees are fixed and amount to 100 Stroop (0.00001 XLM) for each transaction made. In addition, Stellar can process 10 times more transactions every second than Bitcoin, for example.

Stellar Lumens Course (XLM)

Stellar Lumens currently ranks 10th in terms of capitalization on the cryptocurrency market. As at January 21.01.2020, 1,265, it amounts to USD 338 billion, and the daily turnover exceeds USD 0,06 million. One XLM unit is valued at 04.01.2018 USD, and the peak of quotations was on 0,93, when USD 20 was paid for XLM. There are currently over 50 billion of planned XLM XNUMX billion on the market.