The possibility of Stellar mining is the subject that we want to examine in this article. Stellar is a platform that joins banks, payment orders, and exchanges between different people. The Stellar network, launched in 2014, uses blockchain to quickly exchange currency and transfer money. First, we will get acquainted with this cryptocurrency then we will deal with the issue of Stellar mining.
The code of Stellar was originally written according to the Ripple protocol so we can say that Stellar is a fork of Ripple. But later, due to fundamental diversities among the two protocols, the Stellar code was eventually completely rewritten. The network is designed on a semi-centralized consensus platform and supports any currency such as the US dollar (USD), the Chinese renminbi (RMB), or the Japanese yen (JPY).
To check the possibility of Stellar mining, we need to get acquainted with its token. A specific token of the Stellar platform is Stellar Lumens, known by XLM. This cryptocurrency initially called the Stellars but renamed Stellar Lumens in 2015 when it rewritten and upgraded.
Where does the history of Stellar mining go?
If you want to know about Stellar Mining, you need to know its structure. There are many similarities in the main structure of Stellar and Ripple. This goes exactly back to the original maker of Stellar. The creator of this cryptocurrency is Jed McCaleb, the senior founder of Ripple cryptocurrency.
McCaleb, one of the creators of Ripple Currency, developed Stellar after leaving the team in 2014.
Developers introduced the first Stellar coding in 2015. In the first version of Stellar currency, due to McCaleb’s presence in the Ripple team, there were many similarities between the two. The similarity was so great that it challenged Ripple and Stellar owners. In late 2015, however, a new algorithm was introduced for Stellar and its code was rewritten.
How does Stellar Blockchain work?
To know Stellar Mining, we need to get acquainted with its algorithm. Stellar is a public blockchain platform that uses the Stellar Agreement Protocol (SCP). The node that finds the next valid block is selected by a complex and common agreement. This centralizes and authorizes blockchain and Stellar Mining is not like Ethereum or Bitcoin cloud mining.
Stellar is a society-based, open-source project launched in November 2014 and written in C ++. These passwords are supported and monitored by the private company Stellar.org. The main purpose of building this blockchain was to develop access to low-cost financial services. Stellar works with its token, Lumen, from which a fixed rate of 1% increases annually.
The main difference with Bitcoin is that Stellar mining is based on the SCP algorithm instead of best crypto mining, which means that trades are confirmed in 2 to 7 seconds. Stellar has SDKs that allow users to connect to the blockchain with external software written in some languages. Each trade costs 100 strops (0.00001 lumens). Stellar is mainly used by money transfer companies such as Tempo, Eurochange, and TransferTo, and mobile financial service providers such as Coinsdotph.
What are the features and specifications of Stellar Lumens cryptocurrency?
- Its transaction confirmation time is 3-5 seconds.
- At the start of the launch, 100 billion XLM units were shipped.
- Supports thousands of transactions per second.
- Instead of Stellar mining and the Proof of Work (PoW), it uses the Consensus Protocol. Therefore, Stellar mining is not as possible as some of the cryptocurrencies.
- It has a simple and clear API or Application Programming Interface.
- Stellar support smart and multi-signature contracts, which makes Stellar mining different.
- Its database distribution is decentralized.
- The Stellar network can approve transactions in 3-5 seconds for a fee of 0.00001 XLM. Therefore, it is an ideal option for the mass acceptance of consumers and international transactions. The Stellar network is capable of supporting +1000 transactions per second.
Stellar (XLM) chart
What are the goals of Stellar mining for Lumens cryptocurrency?
- For preventing network spam Stellar Lumens is setting low transaction fees. In the Stellar network, the fee for each transaction is very small, equal to 0.0000001 XLM. This fee prevents users from invading the network with malicious targets (ie DoS). Therefore, we can say that Stellar Lumens, by acting as a security token, prevents the creation of too many transactions and consumes a lot of space in the ledger.
The network of Stellar mining requires all customers to have at least 20 XLMs in their accounts. The purpose of this condition is to ensure that the accounts are trustworthy. It helps maintain a seamless network flow.
- Stellar has built multi-valued transactions. The Stellar Lumens as an intermediate, allowing transactions among different currency pairs. This performance is possible when there is a liquidity market between Stellar Lumens and any other currency that would have existed.
Is Stellar Mining Possible?
As mentioned, Stellar mining is not in a process similar to Bitcoin (BTC). This cryptocurrency does not use a proof-of-work algorithm so it is not possible to release this currency by Stellar mining.
At the beginning of the launch of the Stellar network, 100 billion XLM had already been mined so the Stellar mining was finished. This means that the created XLM currencies are in circulation. At present, the only mechanism for creating a new XLM is based on inflation. The network’s developers have set the annual inflation rate at one percent to make up for lost XLM currencies and boost economic growth. This one percent is distributed weekly among the nodes. So do not think about Stellar mining at all.
Stellar creation is not done through the Proof-of-work algorithm. Stellar mining is not possible like the tokens of other blockchains. Instead, Stellar approves transactions through the voting system. Block bonuses with a one percent annual inflation rate will award to Stellar nodes.
Developers launched one hundred billion lumens in the first five years of Stellar life. lumen supply also increased by 1% per year.
The number of lumens produced was distributed as follows:
- Users who will invite by members to attend a meeting organized by the Stellar Foundation were given 50 percent.
- 25 percent was distributed among partners, companies, governments, and NGOs that contributed to the growth and adoption of Stellar.
- Owners of Bitcoin and Ripple received 20%. They divided the lumens into two periods, one in October 2016 and the other in August 2017. During this period, they distributed 19% among Bitcoin users and 1% among Ripple users.
- Five percent was set aside for Stellar company operating expenses.
- There are currently about 50 billion lumens, of which there are approximately 20 billion XML tokens on the open market. So Stellar mining is not possible and no lumens will create. The Stellar Development Foundation has decided to use the remaining $ 30 billion to develop and promote Stellar.
Is it possible to earn Stellar currency by Stellar mining?
Stellar was developed in 2014 and its payment is based on the blockchain protocol. Stellar’s initial goal was to build a network of bank-free areas in developing countries. However, it later focused on connecting established financial companies to the blockchain.
The name of the token of Stellar Network is Lumens (XLM). It can use to pay for transaction fees. It acts as a medium and allows users to trade multiple currencies. Stellar Lumens uses Stellar’s proprietary protocol instead of the proof-of-work protocol. As mentioned Stellar mining is not possible.
So, when Stellar mining is not possible, the only way forward is to buy and sell this cryptocurrency. The people who interest to have Stellar, they can buy and sell Stellar cryptocurrencies through reputable crypto exchanges.
To get Stellar, you need to prepare a lumen. Many exchanges sell lumens and are also available for trading directly on the Stellar network.
Reputable exchanges such as Binance and Coinbase allow users to buy lumens in dollars. Because Stellar mining is not possible, the local Stellar exchange called Lobstr lets you purchase lumens on the Stellar network.
Note that the value of cryptocurrencies is always fluctuating and buying them is risky. Lumens always use in the Stellar network, but the price of lumens may change with the Fiat currency, and you can lose significant capital.
It is better to use a hardware or digital wallet for storing lumens and easy access to network features such as payments and peer-to-peer transferring.
Stellar consensus platform
What is the reason for the popularity of Stellar?
Stellar offers the wide range of services you would expect to receive from a regular bank, but there are a few fundamental differences.
Transactions will complete in a decentralized network, with much lower costs and higher processing speed than a traditional bank.
These payments will process in 3 to 5 seconds, currency exchange in this system is relatively simple and network costs are low. Stellar aims to fight poverty and maximize individual potential by providing low-cost financial services to people around the world.
Where does Stellar value come from?
Stellar is useful and valuable as a global exchange network. The network can exchange many currencies and tokens in one second.
Exchanging among crypto and fiat currencies is a time-consuming and costly process that is faster and cheaper through Stellar.
XLM is an asset used to pay transaction costs and maintain accounts on the Stellar network. The more acceptance of Lumen currency, the more its value will increase. Quantity affects scarcity, Because Stellar mining is not possible, and the price of a Lumen is much lower than the price of a bitcoin. It is difficult to determine the value of Lumen in the future, as this is strongly related to the widespread acceptance and success of this technology.
What are the benefits of Stellar cryptocurrency?
- Stellar has a very good security record. Stellar mining is not possible and the Stellar network has experienced almost no hacking so far. The very low fees you pay for each transaction of this cryptocurrency will use to prevent DDoS (a type of cyber-attack on the server) attacks. Since a large company like IBM also uses this currency in its projects, it is safe enough.
- It has a high speed of transactions. Stellar processes about 2,000 transactions per second. As a result, each transaction will confirm within 5 seconds. This remarkable speed has led to great progress in overseas payments.
- The cost of the transaction is Low. The short time of transactions and the high operational efficiency of this cryptocurrency have led to a reduction in its cost. The transaction cost of this protocol is much lower than a competitive payment protocol such as Ripple.
- Stellar mining is not possible but it utilizes advanced technical elements. Stellar can join elements such as the Blockchain smart contract with features such as multiple signatures. It increases the overall performance of the payment protocol.
What are the disadvantages of Stellar?
- The Stellar system lacks concentration. It has a big partner with a big name like IBM.
- Stellar is facing a lot of competition. So it is difficult for Stellar to maintain power. The Ripple payment protocol is the biggest competitor for Stellar because one person implemented both of them. Besides, traditional banking institutions are trying to diversify their overseas payments and maintain access to different communities such as SWIFT.
- It has restrictions in Stellar mining and on access to the transaction. You must have at least 20 XLM currencies in your wallet. This limitation on the system can be problematic for users who do not intend to invest that amount in Stellar currency.
- Stellar is a decentralized currency. While Ripple is a centralized currency. While many users may prefer Stellar to Ripple, other users, like banks and other financial organizations, prefer a more centralized system like Ripple.
What are the achievements of the Stellar network?
Although stellar mining is not possible the Stellar network is overtaking the Ethereum network. The operation of this network is cheaper and faster. Asset exchanging is an internal feature of the Stellar protocol.
While users often have to use an intermediary exchange to carry out Ethereum transactions, the ease of use of Stellar has made the network very popular among a variety of projects.
IBM is one of the largest companies currently using the Stellar blockchain in several of its projects. The company has launched a Stellar-based payment system called Blockchain “World Wire.”