There’s a new kid on the block; Stellar coin. The coin is the hottest digital coin of 2018. According to CNBC, the coin has climbed more than 65% since the beginning of the year to make it into the ten largest cryptocurrencies by market capitalization. Also, further reports by CoinMarketCap indicate that the coin has a market cap of $10 billion, and takes the eighth position among the big-fish coins.
With so much going about the coin, we’ve decided to provide you with a definitive guide that will enable you to learn and understand all you need to know about the coin. This is guide comes at a time when the mother of cryptocurrencies-Bitcoin, has been losing its momentum in the few weeks, and the stellar might seem the perfect alternative to invest in.
What is Stellar Coin?
Stellar is a cryptocurrency that facilitates the cross-asset transfer of value including payment. It’s an open-source, decentralized financial global network. Just like popular crypto coins such as Bitcoin and Ethereum, stellar is based on the blockchain technology theme. Formerly known as XLM cryptocurrency or stellar lumens, the stellar coin was developed by the creator of eDonkey. Stellar coin mode of operation is based on the Ripple protocol. This is to mean that Stellar aims at building financial products for transactions globally. Essentially, stellar targets high-volume clients with cross-border transactions.
Purpose of Stellar Coin
As stated earlier, this virtual currency is a financial payment platform that facilitates easy transfer of money across borders. Users of the stellar coin often find moving money across borders quick, reliable and for a fraction of a penny.By integrating all your financial transactions into the stellar network, you can have access to an open, global financial network. This network fosters equality for all the participants and promotes economic participation.
What’s Unique About the Stellar Network?
Every coin has its major selling point, and when it comes to the stellar network reliability and timeliness are the unique features of the coins. Even though stellar coin still operates on with the blockchain technology behind some of the popular virtual coins, the stellar network allows for faster transactions.
Precisely speaking, most of the Stellar’s transactions are often settled within 2 to 5 seconds after initiation. This swiftness of the coin enables all its users to make financial transactions within a few seconds. This is a major improvement over the prolonged verification times that are often seen in most of the cross-border payments.
Stellar network mainly targets enterprise clients with scalable -border transactions. However, unlike Ripple and its laser focus on big banks, Stellar has taken a new approach to cross-border scalability. Whereas Ripple is busy sinking its teeth into big financial institutions and banks, Stellar is looking to solve problems for the multinational corporations that conduct multi-billion transactions in revenue away from their home countries.
A perfect example is the recent announcement of a partnership with the IBM and KlickEx. This multinational partnership is aimed at facilitating a faster cross-border transaction. This partnership not only signals the trust behind the Stellar network, but it could also be Stellar’s opportunity to prove the value of it blockchain to other multinationals.