Is Stellar Lumens XLM The Best DeFi Cryptocurrency?
Is Stellar Lumens or XLM is the next big cryptocurrency that requires our attention? We are going to dive into the history of Stellar Lumens. Let’s go over some of the great benefits that it has:
Stellar was founded by Jed McCaleb and Joyce Kim in 2014. When you hear XLM you might think about XRP also known as Ripple Jed McCaleb also co-founded Ripple so he has his hand in both cryptos.
The Difference Between Ripple and Stellar
The fact is both the cryptocurrencies have some key differences:
- Ripple does not use the same protocol as Stellar which uses its own Stellar consensus protocol. This by the way is the same protocol the Pi network uses according to the white paper.
- Stellar is inflationary and XRP is deflationary. So they have opposite trends in buying power.
- Ripple is geared more towards banks and large businesses while Stellar is geared more towards the average person
The great potential benefits of XLM
The benefit of XLM Stellar is decentralized. The people in the network authorize the transactions so there’s no central power that can control everything or boost certain people off of the network. This is a benefit that most cryptocurrencies have in which they put the financial power into the hands of many different individuals instead of concentrating the power.
- XLM Transaction Fees
Another big plus about this crypto is the low fees. As almost all cryptos have fees for transactions. For example, the transaction fee at this time for Bitcoin is around $14. This is down from a $62 transaction fee last April which was at an all-time high. This makes Bitcoin pretty impractical for small purchases like a meal or cheaper clothing. Stellar on the other hand has a transaction fee of .00001 XLM which is a fraction of a cent.
- XLM Transactions Time
Also the speed of transactions are faster as the average transaction time for Bitcoin transfers are 10 minutes whereas for Stellar the average time is 3-5 seconds.
- Most beneficial cryptocurrency for the common people
All of this makes Stellar Lumens a great crypto for small everyday monetary transactions. On the other hand, think of Bitcoin in this case as like a wire transfer and Stellar has more PayPal or Cash App. It’s a cryptocurrency that’s fast and cheap to use.
Tiny Financial Transactions
Stellar Lumens, with this much potential, definitely looks integrated into many pay-per-play type services. For example most newspapers and news websites have a paid subscription to access their articles but with Stellar you can pay per article you read. You might not want to spend the money per month and just read certain articles.
This can be applied to all types of different other online content like music you could pay per music stream a very small amount or videos. The price has also been going up since the pandemic and it doesn’t have a dramatic price swings like other Altcoins such as
Dogecoin or safe mode Stellar can also be bought on many large exchanges such as Coinbase.
Is Stellar Lumens worth the hype?
It’s not a newly created hyped up Altcoin like OneMoon but it is one of the better cryptocurrencies other than the main ones that’s on the market. With this much potential on every fraction of consideration, Stellar Lumens is here to rock and make DeFi an everyday reality by empowering the common people.
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