What is ‘Bitcoin rival’, Stellar Lumens?Stellar Lumens is a payment system that connects financial institutions and people by offering cross-border transfer services at a reduced cost and in a shorter amount of time. Sound familiar? It sounds an aweful lot like Ripple (XRP), doesn’t it? You are right! Its founder is Jed McCaleb, who is also the co-founder of Ripple. As a matter of fact, Stellar and Ripple initially used the same protocol.
The Stellar network was built by the Stellar Development Foundation. The Foundation is a non-profit that was launched by McCaleb in 2014. There is a misconception that Stellar is a fork of Ripple but this is not the case since they have different codes.
Did you know Stellar offers grants of up to $2 million to developers to work on the Stellar Build Project? Stellar and IBM are partners in their Hyperledger project. Pretty impressive!
XLM vs XRPIt is said that the biggest difference between XLM and XRP is their vision for the future of cryptos.
XLM is on a mission to give the unbanked populations of the world access to a global blockchain based payment system. XLM’s codebase is open-sourced and anyone and everyone can participate. In order to cover operational costs, Stellar has set aside 5% of the total tokens for own use and they also accept donations. One can also conduct ICOs on the Stellar network that promises lower costs and faster transaction speed than Ethereum’s ERC20, for example.
On the other hand, XRP’s entire codebase is not open-sourced and is geared towards profit.
In a nutshell, XLM caters for the individual and XRP caters for banks.
Burn baby, burnThe price of XLM recently increased by 20% when news of a coin burn made headlines. The Stellar Development Foundation burnt 55 billion tokens in an effort to shrink supply from 105 billion tokens to 50 billion tokens.
The coin burn occurred in order to cease inflation. Members of the Foundation voted in support of the coin burn stating that inflation would not be beneficial to XLM.
Furthermore, the Foundation reassigned the remaining XLM tokens to be used for direct development, ecosystem support, use case investment and user acquisition. Ecosystem support was allocated 80% of tokens. This will go towards acquiring companies and funding enterprises.
In conclusion, Stellar is generally referred to as ‘the Bitcoin rival’. This is mainly due to the fact that Stellar offers lower transaction costs and faster transaction speed etc. The project is very community driven and caters for the masses.