Stellar Lumens (code: XLM) is the native cryptocurrency of the Stellar network, an open-source blockchain platform established in 2014 by Jed McCaleb and Joyce Kim. Previously, Jed McCaleb founded the Mt. Gox exchange and co-founded Ripple. Stellar is designed to connect financial systems, enabling quick, secure, and low-cost cross-border money transfers.
Uses of Stellar Lumens (XLM):
Cross-border money transfers: Stellar allows users to send and receive money between different currencies globally. For example, a user can send USD and the recipient receives EUR, with processing times that are nearly instantaneous and low transaction fees.
Supporting financial institutions: Stellar provides solutions for banks and financial institutions to connect and interact with each other, helping to improve efficiency in money transfers and international payments.
Decentralized application (dApp) development: The Stellar platform supports the building and deployment of decentralized applications, opening opportunities for various fields such as finance, supply chain, and data management.
Transaction fees and spam prevention: XLM is used to pay transaction fees on the Stellar network, helping to prevent spam activities and protect the system from cyber attacks.
Staking and maintaining the ledger: The Stellar network requires participants to stake XLM to maintain the ledger, ensuring the security and stability of the network.
In summary, Stellar Lumens (XLM) plays an important role in facilitating cross-border money transfers, supporting financial institutions, and developing decentralized applications. With low transaction fees and fast processing speeds, Stellar provides an effective solution for connecting financial systems globally.
