What is Stellar (XLM)?

Lumen is an online, decentralised digital payment system that’s been designed as an alternative to existing payment systems. Primarily, Lumen has been designed for use in developing economies for purposes such as remittances, small transfers and the trade of small assets. XLM is the name given to its digital currency which is designed more as an intermediary currency to be used during the transaction between two different currencies rather than being a unique store of value in its own right. Lumen has a lot of potential as a new rising currency.

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  • stellar
  • Stellar
  • Price
  • Market Cap
    $3.23 B

What’s Unique about Stellar (XLM)?

Intended Purpose

The main market that Stellar is interesting in taping into is developing economies where it wishes to replace existing systems for remittances by expats ad to serve as a creditor for individuals and businesses who do not have access to banking services. This makes Stellar unique amongst cryptocurrencies as while there are several cryptocurrencies that aim to displace existing banking infrastructure, Stellar is the only one that has been designed specifically for developing economies.

Distributed Exchange Model

Stellar uses a distributed exchange model for conducting payments that allows users to make payments in one currency, which is then converted into another using Stellar (XLM) as an intermediary currency. This is a unique feature since it means that Stellar is not intended for use as a typical cryptocurrency, which is supposed to simply be a digital alternative to existing national currencies.


Stellar cannot be mined, unlike most other cryptocurrencies since the currency has not been designed as a mining based one. Stellar can instead be purchased or acquired through one of the company’s many partnership programs that reward programmers and developed for improving the network through bringing innovation in the currency’s wallets. This contrasts sharply with mainstream cryptocurrencies which feature mining as one of their core components.

Why Should I Invest in Stellar (XLM)?

There are a number of cryptocurrencies that have been designed as alternatives to traditional banking solutions for international tradition and asset exchanging purposes, so why should you choose to invest your money in Stellar (XLM) instead of the many other options?

The primary reason why is that Stellar has been developed to appeal to a very specific niche market: developing economies and individuals without access to traditional banking solutions or creditors. As such, it is a very unique currency that has been designed to handle a very specific purpose.

This purpose of easing remittance payments will likely make Stellar a very successful cryptocurrency in the near future as demand for superior remittance systems are very likely to increase. So, while even though other cryptocurrencies may already pose a challenge to existing banks, Stellar offers a major challenge to traditional banks with respect to a very specific domain.

This specificity will allow Stellar to gain a competitive advantage with respect to all international remittance transfers since it will provide the fastest transfer at the lowest expense, so it is very likely to be adopted by a wide range of people in the near future.