Stellar Lumens (XLM)

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Official site (website): https://www.stellar.org YouTube video (channel): https://www.youtube.com/channel/UC4BrVpvKK0r2zP9xVFQcPSA Github: https://github.com/stellar Official Facebook account (fb): https://www.facebook.com/stellarfoundation Official Twitter account: https://twitter.com/stellarorg Official Twitter account: https://twitter.com/stellarlumens Support email address: https://www.stellar.org/contact/ Discussion forum: https://stellarcommunity.org Official Facebook account (fb): https://www.facebook.com/groups/stellarorg/ PDF document file: https://www.stellar.org/papers/stellar-consensus-protocol.pdf Official LinkedIn account: https://www.linkedin.com/company/stellar-development-foundation Slack channel: http://slack.stellar.org Discussion forum: https://galactictalk.org Official blog (news): https://www.stellar.org/blog/ Website (site): https://www.mystellar.org/ Website (site): https://www.stellar.org/developers/ Contact support (number, email): https://stellarorg.zendesk.com/hc/en-us

Truth and facts[edit]

  • Stellar Lumens is a cryptocurrency which enables people to do very fast payments with low fees.
  • Stellar Lumens does not mineable and does not use proof of work (PoW). Instead, Stellar uses SCP, the stellar consensus protocol.
  • The applications of Stellar are for micro payments and cross-border transfer.
  • Stellar supports over 180 currencies, which moves in five seconds or less and cost a fraction of a fraction of a cent.[1]

Ripple

  • Stellar Lumens (XLM) is actually the fork off Ripple (XRP) in 2014.
  • Stellar is more open source, it's more trying to engage the community while Ripple was more close source and target systems like banks.

Official

  • Stellar Development Foundation is based in San Francisco, CA, USA. A nonprofit organization building a common financial platform, designed to be open and accessible to everyone.[2]
  • Our mission is open source financial access for all.[2]


Video Playlist[edit]

How Money Moves on Stellar

00:00 How money moves on stellar.
00:00 Meet Amy, Amy is a customer of Universal remittance company in the US and often sends payments to Tunde in Nigeria.
00:10 Meet Tunde, Tunde is a customer of domestic bank in Nigeria.
00:16 Meets stellar, stellar is an open platform that connects banks, payment systems and people.
00:22 Both domestic bank and Universal remittance company have integrated with stellar so they can move money quickly, reliably and it almost no cost.
00:32 When Ami sends two day $100 through her remittance company's mobile application, within fractions of a second it sends a message to domestic bank to make sure tunde's account is compliant.
00:44 Then the remittance company which is an anchor on the stellar network, meaning that it could accept deposits and issue credits on the stellar network deducts the funds from Amy's individual account.
00:55 Those funds are moved over to universals pool account and then moved on to stellar by issuing credits for Amy's dollars on the network.
01:03 Once universals credits are inside stellar, the network searches for the best exchange rate amongst all the market makers on the network.
01:12 The exchange is complete and now the Nigerian naira moved to domestic banks base account.
01:19 Domestic bank receives these digital credits for naira from the stellar Network, a domestic Bank credits tunde's personal account.
01:27 That is how one u.s.
01:27 Dollar converts to any of 180 currencies on stellar, moves in five seconds or less and cost a fraction of a fraction of a cent.
01:40 A stellar integration starts with a conversation between our team and yours.
01:44 Join these companies who have committed to faster, cheaper and more secure payments.
01:52 Contact partners at stellar org, to see how stellar can help your bank compete in the future.

Stellar Lumens in a Nutshell

00:00 What's up everyone, my name is Michael and welcome to box mining.
00:02 Today I want to talk about stellar and stellar lumens.
00:04 We'll start off of what the stellar project is and how they're trying to be different from everything else.
00:11 Then I'm going to talk about their advantages and disadvantages of system and finally I'm gonna talk about stellar lumens and the token that they're using.
00:18 So let's start off with what is stellar and what is trying to achieve.
00:23 It's trying to use cryptocurrencies to do very fast payments with low fees.
00:26 So if you look at the key advantages of stellar, it has a three to five second conformation time, it also supports thousands of transactions per second.
00:38 So that's a little bit different from Bitcoin which has a approximately ten minute conformation time and Bitcoin doesn't support as many transactions as stellar does.
00:48 So if you look at this, stellar uses something else.
00:51 So it can't use the same mechanism that Bitcoin uses, which is called proof of work.
00:56 So bitcoin is mineable.
00:56 But stellar uses something else is called the SCP, the stellar consensus protocol.
01:04 And if this all sounds a little bit familiar of this kind of fast confirmation time and fast many contraction per second and you're thinking about something called ripple, then you're right.
01:14 Because stellar is actually based on ripple’s code and it's actually fork off ripple and happened around 2014.
01:21 So it kind of originated from ripple and kind of deviated from that and changed.
01:28 So there is a little bit of controversy surrounding this and I do want to cover that in a little bit later.
01:36 But I just want to talk about the key advantages of stellar first.
01:38 So it doesn't use mining, it's not mineable, all stellar lumens are created from the start and if you look at your white paper, what they're trying to claim is that they're trying to claim that this kind of protocol mechanism is better than Bitcoin mostly because it still keeps its decentralization but it has low latency, flexible trust and better security.
02:01 Of course not everyone believes this, so this is kind of one-sided part of their white paper.
02:06 The thing with proof of work is that it is truly decentralized and miners are incentivized by rewards to mine and be honest.
02:13 The thing is with the seller consensus protocol, it is something new and different and it uses a different trust mechanism, so kind of the network chooses to trust itself or not but it doesn't have mining, it doesn't have a reward or a lack of reward rather if you choose to be dishonest.
02:31 So this is something that is a little bit different and a little bit different way of kind of doing things.
02:36 There is a little bit of a sacrifice in my opinion.
02:40 So my personal opinion is that sacrifices a little bit of the decentralization for speed and efficiency.
02:46 So there's always trade-offs in crypto currencies, I just want to make that very clear that every mechanism has its, you know advantages and disadvantages and the SCP the ripple master and the SP the seller mechanism does have some advantages because it's fast.
03:04 But of course there are people that can definitely argue that because it's not mineable, because there's no mining mechanism here and or incentive to be a miner or part of a node, then it's not as secure as Bitcoin.
03:16 So we talked about how stellar has fast confirmations and supports many transaction for a second.
03:20 So what are the applications of stellar?
03:22 Well the applications are for micro payments and cross-border transfer.
03:27 For example remittances and also something like mobile money.
03:32 So it's trying to do this kind of transfer of value thing very similar to what Ripple was trying to do, but it's trying to target more for retailers, merchants, so kind that's the kind of the key difference between ripple and stellar.
03:45 Stellar is more open source, it's more trying to engage the community while ripple was more close source and target systems like banks.
03:54 So here we have recently stellar and IBM announced a partnership to solve cross-border payments.
04:01 So this is a huge issue if you guys remember systems that are currently in place for example Swift or using traditional institutions require a lot of time and high fees, and then something that stellar lumens try to solve because you can transfer these tokens really quickly between countries and it's kind of nation less and transfer anywhere across the world, takes the same amount of time.
04:24 So that's a key advantage of using this system.
04:26 So IBM and seller are trying to develop the system and trying to improve it so that there's like 12 currency corridors, you can transfer currencies between for example New Zealand and a United Kingdom and they're trying to get different parties on board.
04:39 Of course they need a lot of liquidity providers to do this and they're still in the process of working this out.
04:44 And of course when Kathy is that they don't have to use the stellar lumen token.
04:47 So I'll talk about this token in a later a second as well.
04:52 So the protocol itself is all about fast transactions and about many transactions per second, basically this kind of instantaneous and real-time transactions that's what they call it because five seconds to six seconds delay isn't that long.
05:05 So now let's talk a little bit about the lumens as well.
05:07 So the lumens is the native kind of currency and atthe native asset of the stellar Network.
05:13 So we talked about how stellar is the protocol level, the lumens are the tokens that you're sending.
05:19 The tokens are like Bitcoin and there's a lot of these tokens, around a hundred billion of these tokens are created and they're not mine so they're just created, it's called, you know, community will call this pre mined in a sense that this was created by the company and then were issued out during various air drops.
05:36 So people that were you know taking part of the air drops could claim stellar lumens for free and that was a way to distribute these stellar lumens to Bitcoin holders.
05:45 Currently at this point six point nine nine billion tokens have been distributed so far, but that's a little bit quite a little bit shy of the 100 billion that were created.
05:58 So a lot are still not distributed and held by the stellar foundation.
06:02 In terms of how transactions work, it's very similar to the ripple Network.
06:07 There's a very small amount of fee associated to with sending seller lumens and the fee is mostly to prevent the network from spam attack.
06:14 So there's a minor fee associated with everything and account holders must hold a minimal balance of 20 lumens, so it's not really a lot of lumens that they have to hold to use this network.
06:25 So if you're using this as remittance, I think it suffers the kind of the same advantages and disadvantages of ripple.
06:31 I've been talking about ripple a lot but a lot of people think that this will be held by a lot of people using this as remittance, but if the transactions are really fast and you just want to transfer currency from point to point and use stellar or ripple as a medium, then it's only an intermediary state and you don't need that much to have lots of liquidity.
06:53 So I really think that this is one of the things that you must remember if you think about, you know buying lumens or buying ripple in general.
07:02 It's meant to be an intermediary currency unless people really want to hold on for it for a long term.
07:11 There's really this design around it it's really to just facilitate a transfer and once transfer is done then it'll be released back into the network, so you don't really need that much to have a very kind of liquid network.
07:24 So lastly I want to talk about ripple versus stellar lumen, because this has been a huge debate since 2014.
07:30 Seller has been forked from ripple and it was developed by someone that was part of the original ripple team.
07:39 However there has been criticism on both sides about each other's network.
07:43 So they were just you know, stellar has been talking about how after they forked off ripple, they made various improvements that change you know consensus code how the ripple network gains consensus.
07:57 And there's claiming that these changes are because of a core bug, core issues in ripple system.
08:05 But ripple has since then reply to that and says that, you know the forking issue doesn't affect ripple and that ripple is not really bugged out.
08:12 So it seems like there is a mini war between ripple and stellar to claim which one is better and bug free.
08:19 The cool thing is that you can judge this for yourself.
08:24 So if you used to get hub, both ripple and stellar have their sources code on github.
08:29 I would love to hear your opinion on this debate as well.
08:32 Whether you think stellar is a better mechanism then ripple or if ripple is better.
08:39 So I'd love to hear your opinions and kind of discuss.
08:41 This guys thank you so much for watching this quick summary of stellar lumens, if you want additional things to be added, I would love to hear them below as well and maybe can make additional more advanced video covering stellar lumens.
08:53 Thank you guys so much for watching, remember to subscribe this channel for more discussions and more videos like this.
08:59 Remember to click that notification bell on a side to be notified of new videos as well.
09:02 Thank you guys so much for watching, see you next time.

Frequently asked questions[edit]

  • What is the relation between Stellar Lumens and Ripple?
Stellar Lumens is the fork off ripple in 2014.

Reviews[edit]

References[edit]