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30 Jun 2020

Stellar Lumens (XLM)

Stellar Lumens (XLM)

In a nutshell, Stellar Lumens seeks to use blockchain to make very fast international payments with small fees. The network can handle thousands of transactions a second with only a 3-5 second confirmation time.

As you may know, Bitcoin can sometimes take 10-15 minutes for a transaction to confirm, can only handle a few transactions a second and, in turn, has very high transaction fees.

If this sounds a lot like Ripple, you’re right! Stellar Lumens was based off of the Ripple protocol and is attempting to do similar things. Some of Stellar Lumens’ main uses will be for making small daily payments (micropayments), sending money internationally, and mobile payments.

Stellar Lumens is focusing on the developing world and, more specifically, the multi-billion dollar industry of migrant workers who send money back to their family in impoverished countries.

The Stellar Lumens team is led by Jed McCaleb, who has worked in numerous successful startups in the past such as eDonkeyOvernetRipple, and the infamous Mt. Gox.

For more information on Stellar Lumens, including the history and what sets Stellar Lumens apart, see “What are Stellar Lumens.” You can also learn about the differences between Stellar Lumens and Ripple. And here’s why we think XLM is a smart long-term investment.