What is XLM
What is XLM?
One of the Ripple founders, Jed McCaleb, wanted to create his own similar cryptocurrency, Stellar (XLM), but only with a greater level of decentralization.
Initially, XLM was a fork of Ripple (XRP) based on the BFT consensus protocol. Before the launch of Stellar (XLM), there was no ICO. The project was sponsored by Stripe, which invested $3 million in it at the initial stage.
The operation principle of XLM is similar to that of XRP. However, Ripple centrally determines network validators, while Stellar does not. Jed decided to take the path of creating a separate cryptocurrency with a focus on decentralization.
Here are the characteristics of Stellar:
- block generation takes 5 seconds;
- each network member can create nodes and form blocks;
- although SCP is a decentralized version of BFT, anyone can take part in building blocks;
- in SCP, nodes select the nodes they trust, and a quorum is secured that reaches a consensus if a certain number of nodes have joined;
- network members do not become validators because they do not receive any rewards in XLM for block mining, only a fee;
- on the Stellar platform, it is possible to launch ICOs, create smart contracts, and develop decentralized applications. Several applications are already running on the platform, and ICOs have been held.
The first XLM rate (in August 2014) was $0.0026. An all-time high was set in January 2018. Then the XLM price reached $0.89. In the spring of 2021, the value of the coin reached $0.71. To find out the current price of XLM, use the trading terminal.
Originally a direct competitor to Ripple, Stellar is a decentralized platform, which means community members can directly participate and make decisions regarding the project. Stellar can also boast high liquidity. The platform provides ideal conditions for making fast payments in any currency and with low fees. That is one of the main trends in the current market development.
StellarX, a decentralized marketplace launched in 2018, provides a high level of liquidity and transactions with zero fees at the same time.
Companies like IBM and Stripe have already partnered with Stellar, and the project continues to grow and develop new partnerships. In addition, company activities expand to the global market, which also indicates the prospects for a successful future and the growth of the XLM rate.
How to buy XLM?
You can buy XLM via your account on the WhiteBIT website. To do this, go to the Trade section and select the necessary cryptocurrency pair. Once you place an order, the coins will be credited to the internal XLM wallet within a few seconds. You can also make a P2P exchange or activate a WhiteBIT Code.
The XLM cryptocurrency is volatile. Use the trading terminal to find out its current price.