Every day we’re trying to do our best to improve the quality of our services & provide a better user experience. Today, we are ready to announce that Stellar (XLM) cryptocurrency is now available on Switchere. Just exchange your favorite cryptocurrencies with us!
Before exchanging XLM,
you need to understand how the cryptocurrency works as well as its key features.
Let’s consider them!
Stellar Lumens (XLM): What is It & How Does It Work
Stellar Lumens (XLM) is a
cryptocurrency project, which serves as an intermediary for financial
transactions.
To answer this question, first, it’s necessary to find out where the XLM cryptocurrency is used. The name of a crypto speaks for itself – in the Stellar network.
Initially, the Stellar
network builds ‘bridges’ between different currencies. How was mentioned
before, it serves as an intermediary for financial transactions. That is, the
main thing is to exchange one currency to another. Financial service providers
can interact with one another via so-called ‘anchors’.
So, if someone wants to
exchange euros for US dollars at a certain exchange rate, they can post a
corresponding offer in the network. It’s stored there until a corresponding
counterpart is found and the money is exchanged. This makes the network an
international trading center for such offers.
All these offers are summarized
in a so-called orderbook. If someone contacts the Stellar network to exchange currencies
themselves, they will look for the best offer. The Stellar Lumens (XLM) cryptocurrency
is then used for the exchange.
By the way! If there is
no suitable offer, Stellar forms an exchange chain and trades different offers
until the desired currency is exchanged.
Once again: Stellar
Lumens is a cryptocurrency, i.e. digital money that is issued in a blockchain
environment. The XLM cryptocurrency itself serves as a ‘fuel’ in the Stellar
network.
The Lumens (XLM)
cryptocurrency can also ‘bridge’ two currencies. Basically, unlike Bitcoin, the
cryptocurrency is inflationary. However, originally there were 1 billion units
of Lumens (XLM). Every year, the network distributes one percent of new digital
coins between the users or token holders in the network.
Stellar Consensus Protocol: The Technological Basis
To inspire confidence in
the network, the Stellar network, like most cryptocurrencies, provides
decentralization. According to the Stellar Consenus Protocoll, it has the
following features:
-
- Decentralized control. Everyone is eligible to use Stellar, and there is no central authority whose consent is required for consensus running.
-
- High level of confidence. Users can easily trust any combination of parties. For example, a small non-profit organization can play a key role in maintaining a much broader scope.
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- Asymptotic security. Security is based on digital signatures and hash families, whose parameters can be set to protect users against hackers with high computing power.
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