6 min read
If you don’t know what Stellar is yet, I want to tell you about this decentralized open source platform that connects people to banks and other payment systems.
Stellar was created to make transactions easier, faster, cheaper, and safer across borders. While it is true that many crypto currencies were born with that goal in mind, today we will review what makes Stellar different from the rest.
It is key to make clear the difference between Stellar and Lumens, as there is much confusion in the crypto environment. On the one hand, “Stellar” is the name of the project and on the other hand, the “Lumens” are the native crypto currencies of Stellar.
This decentralized open source protocol called Stellar allows you to execute transfers from fiat to crypto-currency and vice versa.
The goal is to enable users to easily, securely, and quickly operate international transactions between any currency pair.
The birth and growth of this protocol is driven by an organization called the Stellar Development Foundation, which operates on a non-profit basis.
Unlike the Bitcoin blockchain, Stellar’s blockchain was not designed to be used as a direct payment method. Instead, it is intended to be an intermediary in currency conversion.
Many have placed Stellar as a competitor to Ripple (XRP) and it is true that both projects share much of the mission and vision.
History of Stellar
It is interesting that one of the people in charge of launching this project is Jed McCaleb, founder of one of the greatest and most controversial exchanges in the history of crypomontages: Mt. Jed is also co-founder of Ripple (XRP).
He, along with attorney Joyce Kim and Matt Mullenweg (web developer and WordPress creator), created the Stellar project in 2014 and soon after Patrick Collison (CEO of Stripe) helped launch the Stellar Development Foundation.
Matt Mullenweg, creator of WordPress, the platform on which I am writing these lines.
In July 2014, Stellar was officially launched, with an initial investment of $3 million by Stripe. In addition, the project promoted an ICO (Initial Coins Offering) that came to collect a figure close to 40 million dollars.
Gradually, the exchanges began to list Stellar on their portals and by January 2015 there were more than 300,000 user accounts registered on the Stellar platform.
During May 2017 Stellar launched the company’s commercial arm called Lightyear. A few months later, the Stellar Association Scholarship Program was created, with which more than 2 million Lumens have been granted to partners to develop different projects.
The following year, during 2018, Lightyear acquired Chain, Inc. and the merger of these two companies created Interstellar (no, we are not talking about Christopher Nolan’s movie, although we also recommend that you watch it).
Today, Stellar is one of the fastest growing platforms in the blockchain financial world, and is constantly improving the technology that supports it.
What are Lumens?
Stellar’s currency is the Lumens or Stellar Lumens and at this moment the price of this crypt currency is between 0.5 and 0.7 euros.
This crypto is currently ranked 18th in the Coinmarketcap Market Capitalization Ranking.
The Lumen is a crypt currency that cannot be mined and during its beginnings the foundation behind it created 100 billion tokens.
Over the years, these free Stellar tokens have been distributed among:
– 50% for random people.
– 25% to companies and organizations in the crypto ecosystem.
– 20% for Bitcoin or Ripple holders
The remaining 5% is used to keep the network operational and continue development.
How do you mine Stellar?
The ways to acquire Stellars are by purchasing from an exchange such as Bitnovo, operating within the Stellar network, or through the Foundation’s gift programs.
How to get free Lumens?
If you want to get the Stellar project crypto for free, you can go to Stellar Faucets. Faucets or “griffins” in Spanish give out small amounts of crypto currency as compensation for performing tasks within a certain web site.
Many times those tasks are simply visiting the web and clicking on a link, so here are some Stellar Faucets that may be useful to you:
As we always recommend from our blog, investigate a lot and never give sensitive information like your security seed to strangers.
Where to buy Stellar?
If you want to know how to buy Stellar or where to buy it, of course we will recommend you to buy Stellar from Bitnovo. And this is not simply because we are inside the brand’s blog, but because Bitnovo is really a very easy and fast way to do it.
Our goal as a company is to make it possible for a person who just entered the crypto world to buy any crypto currency in a matter of minutes, without experiencing the problems that most crypt exchanges have.
If you want to know the step by step to buy stellar in Bitnovo see our article How to buy Stellar Lumens and enjoy carrying them in your wallet.