Buy Stellar

Stellar is an open-source blockchain network built for fast, low-cost payments and currency transfers, and XLM is the cryptocurrency that powers it. XLM is also known as "lumens."

It helps to separate two names that are sometimes confused. Stellar is the network and project, while XLM, or lumens, is its native cryptocurrency. People often use the names interchangeably, but you buy and hold XLM, while Stellar is the underlying network.

Stellar was designed mainly to move money around the world quickly and cheaply, including converting between different currencies. It connects banks, payment systems and people, with the goal of making cross-border payments as simple as sending a message. The network is maintained by a global group of participants rather than a single company or central authority.

What is a lumen?

A lumen is the native cryptocurrency of the Stellar network, and XLM is its ticker symbol. Lumens are used to pay the small fees needed to process transactions on Stellar and to help move value between different currencies. The terms "lumen" and "XLM" refer to the same thing, in the same way that other cryptocurrencies have both a full name and a short code.

What is Stellar used for?

Stellar is mainly used to send, receive and convert value across borders quickly and at low cost. XLM, or lumens, is the asset used to pay fees and help move value across the Stellar network.

XLM is used to:

• pay the small fees required for transactions on the Stellar network
• act as a bridge between different currencies during a transfer
• send and receive value quickly and cheaply, including across borders

Instead of mining, Stellar uses a system called the Stellar Consensus Protocol to agree on and confirm transactions. This is designed to be fast and energy-efficient, with transactions that typically settle in just a few seconds. Stellar is often used for payments, remittances and moving value between currencies.

Stellar has a fixed supply of around 50 billion XLM. All lumens were created early in the network's history, and no new XLM is mined or produced over time. An earlier mechanism that increased the supply was removed in 2019, and a large portion of lumens was permanently taken out of circulation around the same time.

The history of Stellar

Stellar was founded in 2014 by Jed McCaleb, a co-founder of Ripple, along with Joyce Kim. It was created to provide a fast, low-cost way to move money globally, with a particular focus on reaching people who are underserved by traditional banking.

The network is supported by the Stellar Development Foundation, a non-profit organisation that helps maintain the protocol and promote its use. You can find out more on the official Stellar website.

Since launching, Stellar has become one of the more established blockchain networks focused on payments, and it has worked with various financial and technology partners over the years. People buy XLM for many reasons, including making transfers, paying network fees, or gaining exposure to the Stellar ecosystem.