These 10 Stellar (XLM) Functions Make You Even More Confident in Becoming a Holder

Bittime - Stellar, founded by Jed McCaleb and Joyce Kim in 2014, is a decentralized and open-source payment technology that enables fast and secure currency exchange around the world. 

Using blockchain technology, Stellar facilitates cross-border transactions with high efficiency.

Original assets from Stellar is Lumen (XLM). 

Stellar's main advantage is its ability to send funds quickly and securely, even for small amounts.

This article will take an in-depth look at Stellar and its ten most significant main functions.

What is Stellar?

Stellar is a completely open network designed for transactions and asset issuance. 

Various types of value, from US dollars to Argentinian pesos to cryptocurrencies and property investments, can be created, sent and transferred digitally on Stellar. 

The network aims to provide uninterrupted communication between all financial markets in the world through a single platform.

Stellar Partners with Other Institutions

Stellar has experienced a lot of progress, including a partnership with Mercado Bitcoin and more than 3 million online accounts in less than a year. 

Some other partners include Coinbase, Franklin Templeton, and MoneyGram, which have expanded the Stellar network.

Visi Stellar Lumens (XLM)

Stellar envisions a future where everyone can easily and quickly transfer funds. 

It is like with one transaction, a trade agreement between producers in the US and buyers in Indonesia can be completed.

Stellar Blockchain Security

Like other blockchain networks, Stellar stores all its transactions in a decentralized public ledger. 

This makes information on the Stellar network highly secure and difficult to manipulate. 

Anyone can join as a verified server, making Stellar highly secure and decentralized. 

A small fee is charged for each transaction, which helps overcome spam problems in blockchain applications.

Consensus is essential in decentralized payment systems. 

Instead of relying on one centralized location, transaction verification and approval is spread across many unique nodes. 

Each node must update the ledger in the same way so that all ledgers reach the same state.

Token Stellar (Lumens)

Stellar's public ledger structure creates demand for lumens. 

With no nominal fees or limits, the ledger can be used as a seamless database management system, which goes against Stellar's goal of being a fast and efficient payment mechanism. 

Lumens (XLM) serves as the network token required for each user.

About 20 billion lumens are available on the market, while the Stellar Development Foundation keeps about 30 billion to support Stellar's development and growth.

10 Main Functions of Stellar

1. Collection Tokenization

Stellar allows valuable assets, such as works of art or collectibles, to be converted into digital tokens. 

This facilitates shared ownership and safer transactions, so more people can invest in assets that were previously difficult to access.

2. Security Tokenization

With Stellar, securities can be represented as digital tokens, providing protection of rights to assets and facilitating more efficient transactions.

This opens up new opportunities in the capital market by making access and liquidity easier.

3. Cross Border Payments

Stellar offers solutions for international money transfers with very low fees and fast transaction times. 

This is very beneficial for individuals and businesses conducting transactions in different countries.

4. Peer-to-Peer Payments

The Stellar Network allows users to make direct fund transfers between accounts without intermediaries. 

It provides a fast and efficient way to pay friends, family, or vendors.

5. Bridge Assets

Stellar serves as a bridge between various local payment methods, enabling seamless interaction between various financial systems. 

This helps create a more integrated and efficient ecosystem.

Read too 5 Best Cryptos to Invest Before 2025

6. Access to Financial Services

Stellar aims to increase access to financial services worldwide. 

By connecting various financial networks, Stellar facilitates easier and faster transactions, especially in areas underserved by traditional financial services.

7. Lobstr Wallet

LOBSTR is one of the most popular XLM wallets, allowing users to store, send, and receive XLM easily. 

This wallet is integrated with the Stellar network, providing a seamless user experience.

8. Refuge Banking App

This app uses the Horizon API to allow users to easily manage their finances. 

Users can make transactions, monitor balances and access other financial services through this application.

9. Linking Centralized and Decentralized Finance

Stellar bridges the gap between centralized (CeFi) and decentralized (DeFi) finance, giving users more control over their assets and increasing transparency in transactions.

10. Increasing Crypto Adoption

Stellar contributes to the growth of cryptocurrency usage by providing an accessible and efficient platform. 

With the increasing adoption of digital products, Stellar helps expand the reach and acceptance of cryptocurrencies in society.

Conclusion

Stellar (XLM) offers a variety of functions that make it an attractive choice for holders. 

With its ability to facilitate fast and secure transactions, as well as a wide range of applications in the world of finance, Stellar continues to show great potential in the cryptocurrency ecosystem.

After reading this, do you feel more confident about the Stellar project? 

Hopefully this article can help you understand the utility of this project.

FAQ

What is Stellar Used For?

Stellar is used to facilitate cross-border financial transactions quickly and at low fees. 

The network enables individuals and institutions to send and receive money in multiple currencies efficiently, as well as supporting the tokenization of assets and other financial services.

What is the Function of Stellar?

Stellar's functions include asset tokenization, cross-border payments, peer-to-peer payments, and providing access to financial services. 

Stellar also serves as a bridge between various local payment systems, enabling better interaction across the globe.

What is XLM Coin Used For?

XLM coins (Lumens) are used as a means of payment in the Stellar network. 

XLM is required to pay transaction fees, as well as serve as collateral to maintain active accounts and support cross-border transactions on the Stellar platform.

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Reference

Rejolut, Top 10 Use Cases of Stellar Blockchain, Accessed November 4, 2024

Author: IN