Stellar is operated just like all other digital currencies. It is used as a payment technology that has a purpose to link financial entities all around the world. The foremost aim that Stellar is now working on is to lessen both the worth and time needed for sending and receiving transfers from all the corners of the world. For easy and safe transfers all around the globe use exchange platforms like Kraken and Cryptography Technology.
Explaining Stellar
Stellar Lumens, also recognized as Stellar only, is a quite famous crypto project that has all its attention on payment processing specifically. The Project of Stellar has the goal of connecting cryptocurrencies and centralized financial entities or banks. This digital asset already made prominent strides towards its goals, and now Stellar Lumen ATMs are predicted shortly.
Once again cryptocurrencies have rebounded back to life. 2019 was a difficult year for digital assets but lately, Bitcoin BTC has exploded all over again. After Bitcoins, alternative coins have started rolling again. But not all the coins are equally standing in this race. People are now questioning where Stellar is fitting in all this mix?
This article is explaining the variety of pros and cons of the Stellar cryptocurrency.
Benefits
As every cryptocurrency has various benefits, Stellar stands in the same line. Below explained are some of the most prominent benefits of the Stellar crypto project.
Unique Investment
For all the investors and users, investing in the Stellar crypto project is unique and fascinating. If the banks get ready to exchange their usual ways of money transfer internationally with Stellar’s household technology. The worth of XLM would be skyrocketing in no time. There are very prominent amounts of money indulged in cross-border bank transfers.
Stellar Blockchain Ledger
When we compare Stellar to the Ripple project, anyone can tentatively authenticate the transactions on the blockchain ledger of Stellar. There are no limitations of any sort. In the meantime, the ledger of Ripple is authenticated by a particular group of validators. This act drops the decentralization characteristic of the blockchain of Ripple and efficiently emphasizes the power structures of reputable banks that non-profit Stellar and other various cryptocurrencies are looking to overcome.
Global Acceptance
The global market leader, IBM is already utilizing Stellar Lumens technology for processing worldwide transactions. As IBM is an international market leader, the future seems shiny when it comes to yet-to-come partnerships.
Speed
It has a high transaction speed which results in a shortened approval cycle. Due to this factor, people are more attracted to the Stellar crypto project.
Smart Contracts, ICO and Scalability
Stellar supports both smart contracts and ICOs. Also, Stellar has resolved the scalability issue and now it can process thousands of transactions per second.
Gas Fee
In the Stellar crypto project, the gas (transaction) fee is almost equal to zero.
Drawbacks
Stellar was developed to bring about big revolutions in the financial world. Though it did not fail there are some noticeable drawbacks that analysts and professionals have observed. Following are some major drawbacks.
Supply of Tokens
At present, Stellar has an extremely limited flow of coins and tokens.
Slow Development
On this platform, development is relatively slow and only a few Lumen tokens can be launched. Also, there is a risk of volatility.
High Number of Competitors
In the market, there is a huge variety of competitors in the same area as Stellar for instance Ethereum, Ripple, and many others.
Rising Controversy
As Stellar is the fork of Ripple, there is now a controversy existing among crypto users over which coin is authentic and which one should be considered a fork. Talking about overall popularity, currently, Ripple cryptocurrency is quite into the future as compared to the Stellar project.
Decentralized and Centralized Factors
Stellar is a decentralized currency however Ripple is from the category of centralized ones. The true digital currency supporters prefer the Stellar cryptocurrency over the Ripple project. The reason they do so is, the customers that the two projects supply towards (banks and other financial systems) will appraise the stability that comes with Ripple.
Bigger Team
The team of Ripple is comparatively bigger and expanded all over the world. As compared to Ripple, Stellar has a smaller team. The bigger team will work faster. In the crypto world, big teams are win-win and so is advised to Stellar.
Conclusion
Stellar was first launched in the year 2014 by Jeb McCaleb. For those who are wondering about the legitimacy of Stellar, it is a legit crypt project and its token XLM is listed among the top 100 cryptocurrencies in the crypto world.
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