What is Stellar
Stellar is an open source payment network that was found in 2014. At its initiation, Stellar was based on the Ripple protocol that they consequently changed to create a fork, and in 2015 their group of developers came up with the entirely new code of updated version of the protocol. While Ripple is an instrument that is used mostly by giant banks and other financial institutions, then Stellar is more of ordinary people’s tool. Today it is used for value exchange transactions as well as implementing it as the infrastructure for financial institutions and global payments.
Lumen Digital Currency
Stellar’s cryptocurrency or as they call it the native asset is Lumen. When Stellar was initiated, 100 billion stellar coins were produced. The following year company decided to rebrand its digital currency into lumen so it could be distinguished from company’s name and the non-profit stella.org organization. Lumen serves as a DDoS attack prevention tool, as you have to pay a 0.00001 lumen transaction fee and to register an account in Stellar network you need to put a minimum of one lumen on your balance.
Stellar Technical Details
Lumen’s ticker symbols are XLM and STR, the latter one isn’t used by Stellar anymore, but some exchanges haven’t bothered to change it to XLM. Like Ripple, it issued 100 billion lumens but instead of making a maximum amount cap Stellar introduced a fixed 1% yearly inflation (every year the amount of lumens increases by 1%). One lumen can be divided into 10 million smallest units that are called stroops, so one stroop equals 0.0000001 lumen.