How Stellar works, and where to earn some freebies.

How Stellar works, and where to earn some freebies.

By keelmann | Crypto420666 | 14 May 2021


STELLAR LUMENS aka XLM

Will become a big part of our soon to be future.

It will allow anyone, anywhere to send money to anyone, anywhere with super low costs and super fast transaction speeds. Whether it's through banks, some sort of routine payment system, or your buddy saving you after you succumbed to the lavishes and temptations of Vegas. Transaction speed are near instantaneous. I can testify from personal experience that sending XLM from wallet to wallet had zero transaction costs. Stellar is an open-source network designed to create or send digital representations of all forms of money. It was formulated so any of the world's financial systems can operate on a single network. The Stellar network's currency is referred to as a lumen. How it works is you would create a digital representation of the currency you'd like to send. Let's say $10 USD. So you'd create 10 "dollar tokens." These tokens are redeemable at anytime. You can send them anywhere in the world and that person can exchange them for tangible currency at any time. Unlike traditional banking systems, these funds assigned to these tokens remain in the account at all times and aren't used for investments or other financial ventures. The funds remain in this account making transactions faster since the money doesn't actually have to transfer to different accounts avoids processing times. The transactions cannot be tampered with due to the information being stored via blockchain. The Stellar Consensus Protocol (SCP) is a one-of-a-kind algorithm designed for this purpose. As transactions are sent, the nodes (which are the heart of the stellar software,) check and recheck making sure the credits and debits are correct. Multiple nodes are used to verify every transaction and must agree unanimously that the balances are the true amount. 

So if I can form my own digital currency and send it on the Stellar network, what's the purpose of a lumen? In order to deter scammers and people who like to tamper with things for their own profit, regardless of the consequences to the rest of us. Instead of using a traditional fiat currency which someone might find bias towards a certain region of individuals Stellar decided to come up with their own token for payments. Now the account which is using these services only requires 1 lumen in it and the minimum transaction fee is 0.00001 lumen. 1 lumen is currently priced at $0.67 USD currently. Which is a heck of a lot cheaper than a $100 MoneyGram which charges $5.99. To send that same amount on the Stellar network, would be virtually free. There were 100 billion lumens initially released at the beginning of the company's formation and an annual 1% is released every year. However, in November of 2019 the community voted to stop this annual release and reduced the total number to 50 billion with no more tokens to be created. 

The Stellar Quest mobile app lets you compete and for every new quest you complete, you will be rewarded with a NFT reward. You could even earn some free XLM! When a quest goes live, you can compete against 19 other people and the person who completes the goal quickest could earn from 10 XLM to 500 XLM. There's a new quest released every few days. 

Another way to earn free lumens is to make an account on Coinbase and through their earn rewards system you can watch short clips answering questions. For each correct answer, you'll be given $2 in free XLM. Check it out!

Until next time, I'm signing off.

Take care,

~ShitCoinKing

How do you rate this article?


4

0


Crypto420666
Crypto420666

My opinion on the winning cryptos

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.