About Stellar Lumens
Stellar Lumens (XLM) aims a public international interoperability between different financial systems and currencies. Money, both fiat and crypto, can be sent as easily as email thanks to Stellar technology. Since it is accessible to everyone, individuals, companies and financial institutions can use the network. The transfer of currency can happen in 3 ways:
Peer to peer: It is looking for counterparties who want to exchange currencies, for example € at $ and choose the best prices.
Via XLM: Lumens (XLM) are used to fill in the holes or to make the complete transfer. The Stellar platform sells the currency against Lumens XLM and searches the Stellar Ledger for an existing outstanding order to exchange at the desired currency.
Conversion chain: The platform automatically converts the funds into different ones, such as JPY> CNY> USD> EUR, to achieve the desired conversion.
The XLM network automatically chooses the best option. This multi-currency transaction is possible due to “Anchors”. Anchors are trusted entities that keep people’s deposits and can then issue credit. In essence, an “Anchor” acts as the link between the various currencies / currencies and the Stellar network. As with Ripple, a small fee of 0.00001 XLM is linked to every transaction that takes place on the network to prevent DoS attacks (aka spams) that would inevitably occur. This fee is small enough, so it has no significant impact on transaction costs, but is big enough to stop bad actors from spamming the network. These are collected in the inflation pool, up to 1%. At the origin 100 billion XLM were created.
XLM is co-developed by Jed McCaleb, also known as eDonkey, Mt. Gox and Ripple.
Visualisation Stellar against world fiat currencies.