Well I’m not at the opulent level of Dan Larimer or Bill Gate. At least not just yet. But over the decades, my quest for financial freedom has been on a steady uniform velocity. This crave for success has proactively ignited inclinations for me to engage in any activity that has the propensity of actuating the thoughts of reaching out for greatness. This inclinations has subjected me to extensive research in the crypto sphere. To an extent I consider myself an Arsenal in the crypto realm. So today I will be writing about steller LUMENS (XML) and how it will save us from the crypto apocalypse.
THIS IS MY ENTRY ARTICLE FOR THE XLM CONTEST ORGANIZED BY TRYBE’S OWN TOM NORWOOD.
You can find details of the contest here: https://trybe.one/stellar-xlm-content-competition/
BRIEF OVER-VIEW OF STELLAR LUMENS PROTOCOL.
Stellar is originally a fork of the ripple (xrp) protocol. Ripple was launched in 2012 and stellar was forked in 21014. Having forked from ripple does not necessarily mean it’s the same with ripple. In fact stellar completely re-architecture its protocol and it completely differs from Ripple in a number of way. Stellar founder Jed McCaleb was one of the programmers that originally wrote the Ripple protocol. Jed later came to a conclusion that the paramount reason for the existence of cryptocurrency is decentralization and once that decentralization is removed, then there is no point for having cryptocurencies . Jed discovered a bug in Ripple protocol and felt that since Ripple is a closed source, then it is subjected to centralization. This was how the fork came about.
In a nutshell, Stellar is aimed at facilitating users to make cross border payment at an incredibly fast speed (approximately 2-5 sec) in addition to confirming transactions at the speed of light, Stellar offers a high degree of ultimate scalability at a relatively low fees.
On like Bitcoin which is mine-able an uses a proof of work (POW) consensus for validating blocks, stellar utilizes a protocol known as SCP (stellar consensus protocol). The SCP mechanism still maintain the decentralization has found in BTC, leading to a low latency and better security.
WHAT ARE THE APPLICATIONS OF STELLAR?
The stellar ecosystem utilizes a native token called LUMENS (XLM). You can issue an asset to token just like issueing an ERC-20 token on the Ethereum blockchain. The core advantages of stellar protocol is security and instantaneous /real time transactions owing to the fact that there is no scripting and smart contracts required. The stellar protocol simply uses the built in functions to issue an asset. The stellar native token LUMENS (XLM) is used for making micro payments and cross border transactions at a relatively low fees while offering SPAM protection. A typical application of the XLM is for WORLD REMITTANCE and MOBILE MONEY. The key discrepancy between stellar and ripple is the fact that ripple is a closed source protocol which targets its usage towards large Banks while stellar on the other hand is an open source protocol which focus its usage towards retailers, merchants, and individuals. Jed called stellar A COIN FOR THE PEOPLE, While Ripple is A COIN FOR THE BANKS. Personally I fell that The closed source in Ripple simply makes it another USD in disguise.
NOW THE MILLION DOLLAR QUESTION IS: SINCE XLM CANNOT BE MINED, THEN HOW IS THE TOKEN GOTTEN?
104,622,670,393 XLM were created (pre mined) and issued out to various users during different airdrops. Bitcoin holders when XLM were created were able to claim this token for free.
HOW DOES STELLAR LUMENS WORK?
the working protocol of stellar is quite similar to that of Ripple. A very small fee is imposed on every transaction this fee is mostly to prevent the network from SPAM attack.
BASIC COMPARISON BETWEEN RIPPLE AND STELLAR.
|When it comes to governace, ripple is obviously more centralized. Ripple itself determine who validate transactions on the network. This centralization completely cataract the whole idea of having cryptocurrency.|| stellar is an open source ledger which offers more decentralization.Anybody can set up nodes and become block validators.
|Ripple is able to scale 1500 transactions per second||Stellar is able to scale 1000 transactions per second. Scalability here is considered to be of a high degree compared to traditional BITCOIN which is able to scale only 7 transactions per second.|
(iii) BACKGROUND TEAM
|Ripple CEO is Brad Garlinghouse. Brad has had past successful project. He is a former CEO of HIGHTAIL as well as senior executive of AOL and YAHOO. Other core team members of Ripple are retired bankers.||Stellar CEO is Jed McCaleb. Jed previously created one of the largest file sharing network edonkey 2000. On like Ripple which is surrounded by bankers, Stellar network is surrounded by aggressive Entrepreneurs. This is why Stellar is a coin for the people.|
(iv) MARKET CAPITALIZATION AND CIRCULATING SUPPLY.
|at the point of writing, XRP is currently ranked #3 in the coinmarketcap with a total supply of 99,991,738,974 XRP and a circulating supply of 40,794,121,066 XRP||XLM is currently ranked #6 in the Coinmarketcap having a total supply of 104,622,670,393 XLM and a circulating supply of 19,163,346,774 XLM.|
|Ripple coin exhibit a deflationary currency model||while XLM on the other hand has a 1% inflation per annum.|
NOW THE BILLION DOLLAR QUESTION IS: CAN HOLDING XLM MAKE YOU A MILLIONARE IN 2019?
The blockchain technology is still in infant stage, and we are yet to see any coin proof a real life usage/application. Ripple founder Brad Garlinghouse once said “that the value of a token solely depends on its utility”. Stellar LUMENS is practically going to change how we do business utilizing the blockchain technology . IBM has announced using XML as a universal cross border payment method. To buttress this, IBM has recently set up 9 Nodes to achieve consensus on the stellar network these Nodes are located in ( Australia, Brazil, Canada, Hong Kong, India, Norway and the United states.).IBM is a giant company and both know the influence it will bring to Stellar. Once this deal with IBM is fully functional, XLM will head no were but straight to the moon. Apart from the partnership with IBM, Stellar is currently in partnership with Deloitte, SHIFT, Stripe and Wanxiang Group.
Another great reason why you should include XML in your portfolio is the 1% inflation pool. if you hold XML in wallet which you owns the private key, you are entitled to a certain percentage of XLM. this inflation in distributed on a weekly basis. the amount of XML you get solely depends on the amount of XML you hold in your wallet. Note: XML token stored in exchanges are not entitled to this percentage inflation. i will publish a more detailed article on this. so always check back
REMEMBER THAT I’M ONLY A WRITER AND A CRYPTO ENTHUSIAST AND NOT A FINANCIAL ADVISER OF ANY SORT. SO ALWAYS DO YOUR RESEARCH BEFORE MAKING ANY INVESTMENT. THE FACT THAT I FOUND A COIN TO BE A GOOD COIN DOES NOT MEAN IT’S A GOOD COIN TO YOU. SO ALWAYS DO YOUR HOME WORK BEFORE MAKING ANY INVESTMENT. TAKE MY DATA, SCRUTINIZE IT THOROUGHLY BEFORE MAKING ANY DECISION.
THANKS FOR READING, YOUR OPINIONS ARE HIGHLY WELCOMED IN THE COMMENT SECTION.
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