Deep Dive Into Stellar (XLM)

Everything you need to know about the cryptocurrency Stellar, a blockchain-based platform that facilitates global cross-asset transfers.

Learn more: https://crushcrypto.com/stellar-cryptocurrency-deep-dive/

Project website: https://www.stellar.org/

White paper: https://www.stellar.org/papers/stellar-consensus-protocol.pdf

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Download the PDF version of the presentation: https://crushcrypto.com/wp-content/uploads/2018/08/CrushCrypto-Deep-Dive-Stellar-XLM.pdf

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Note: This is not a paid review. We do not offer promotional or advertising services. Our content is based on our own research, analysis and personal opinion.
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What does the company/project do?

Stellar is a blockchain-based platform that facilitates global cross-asset transfers, including payments. The goal of Stellar is to allow users to move money across borders in a quick, reliable, and cheap way.

The Stellar distributed ledger records money as credit, which is issued by anchors. An anchor on the network acts as a bridge between a given currency and the Stellar network. Credit is issued to a user’s account that acts like a virtual wallet in exchange for a deposit. Anchors are then trusted to hold the money and honor withdrawals. Credit can be sent and received between network users across the globe.
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What are the tokens used for and how can token holders make money?

Lumens (XLM) are the native asset of the Stellar network. They contribute to the ability to move money around the world and help conduct transactions between different currencies quickly and securely.
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Strengths

– Project maturity – Stellar is among the oldest and most mature blockchain projects.
– Jed McCaleb, Co-Founder of Stellar, has been in the bitcoin/blockchain space since 2011 and is very well respected across the industry. He has assembled a strong core team and they are advised by well-known leaders in the tech industry.
– Stellar has abstained from the hype-based marketing many projects used during the ICO bubble, instead focusing on building out their technology and community.
– The SCP has advantages over traditional proof of work. It has a low computational power requirement, meaning less impact on the environment and low barrier to entry. It also has a high transaction throughput.
– Stellar has made it easy and secure to create a token on the network and launch an ICO. With faster transaction times and smaller fees, it could compete as an ICO platform in the future.
– Stellar has a growing list of company partnerships, bringing on 37 new partners in 2017 alone. They are working with large tech companies such as IBM, who announced they successfully used the public Stellar blockchain to settle cross border fiat transaction in near real-time.
– Stellar specializes in payment transactions and features such as cross-currency transactions have valuable real world use cases.
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Weaknesses

– Low percentage of total supply is circulating. The SDF can unlock a lot of the XLMs held by them, which can dramatically increase the circulating supply of XLM and dilute its holders.
– Inflation of XLM is something that needs to be considered as well.
– There are no block rewards to node operators as transaction fees do not flow to them. As such, there is minimal incentive to become a network validator. Hence, there are very few nodes compared to networks such as Ethereum.
– Smart contracts on Stellar are not Turing complete and are less flexible than smart contracts on Ethereum or other platforms. However, one could also argue that being Turing incomplete also makes Stellar less vulnerable to attacks than Ethereum.
– There is a lot of competition in the money transfer/payment platform industry, including Ripple, which is the third largest cryptocurrency by market cap as of writing and has been around longer.

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Disclaimer

The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don’t invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.

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Kane Dane