What Is Stellar Network & How XLM Works: Full Review Of 2023 For Crypto Traders

What Is Stellar Coin (XLM) & How It Works Full Review Of 2023

Blockchain technology is used to run the decentralized Stellar network. You can exchange lumens, the Stellar network’s lumen-based currency, on the platform (XLM). On the Stellar network, this cryptocurrency is necessary to execute transactions. In 2015, Stellar and XLM were developed. In this article, CoveMarkets will give you a full insight about what is Stellar network?

What is Stellar (XLM)?

What is Stellar (XLM)

A peer-to-peer, open-source digital currency network called Stellar first appeared in 2015. Former attorney Joyce Kim, who has since left Stellar, currently chief scientist David Mazières, and current chief architect Jed McCaleb developed the network. The network was created to make international currency transfers quicker and simpler for users.

It can offer liquidity and banking services for those unable to access regular financial services. The cryptocurrency tokens used by Stellar are known as lumens or XLM. Although they dwell in the same system, Stellar and XLM are two distinct entities. Lumens are traded on the blockchain network built on the Stellar platform. According to Stellar’s website, there are currently 50 billion lumens in use. Lumens cannot be mined since Stellar will stop producing them.

Background of Stellar

Under the leadership of its founders, Jed McCaleb, David Mazières, and Joyce Kim, the Stellar network debuted in 2015. Formerly the creator of Mt. Gox, McCaleb also contributed to the creation of Ripple. Patrick Collison, the CEO and co-founder of Stripe, and a $3 million investment from Stripe helped establish the nonprofit Stellar Development Foundation.

By the end of its first year, nearly 3 million people had signed up for Stellar. Stellar consumed almost half its exceptional lumens in 2019, leading to a rise in pricing. Because manipulating cryptocurrencies can be risky, this raised considerable debate. To stabilize its market, Stellar announced that it would stop producing more lumens when the price quickly stabilized.

How Does Stellar Work?

The fundamental workings of Stellar are comparable to those of most decentralized payment systems. It manages a decentralized server network with a distributed ledger that is updated across all nodes every 2 to 5 seconds. The consensus protocol that Stellar uses sets it apart from Bitcoin the most.

The consensus protocol Stellar uses does not require transaction approval from every miner in the network. This is because it relies on quorum slices, or a network section, to confirm and approve transactions. The Stellar network’s nodes each select a different group of “trustworthy” nodes. Stellar’s network is said to process up to 1,000 network operations per second due to the accelerated procedure.

What Problems Does Stellar Solve?

The Stellar network aims to solve several problems that have plagued the world of international payments and banking.

  • The network seeks to make it easier for people to send and receive money across borders. This is because the Stellar network uses a decentralized network of servers to process transactions rather than relying on central banks or other financial institutions.
  • It aims to make it easier for people to access banking services in developing countries. This is because the network can be used to connect people in different parts of the world who do not have access to traditional banking services.
  • It seeks to reduce the cost of sending and receiving money. This is because the network uses a system of “lumens,” which are essentially digital tokens that can be used to represent a currency.
  • Stellar aims to make it easier for people to exchange money. The network uses Stellar Decentralized Exchange to allow people to trade different currencies.

The Stellar Team

  1. Candace Kelly – Chief Legal Officer: At the Stellar Development Foundation (SDF), a nonprofit group that promotes the expansion and development of Stellar, an open-source network that connects the world’s financial infrastructure, Candace Kelly oversees legal, policy, and government relations. The main objective of Candace’s job is to close the gap between the public and private sectors. She has a long career and extensive knowledge in security and policy, contributing to this post. Before joining Stellar, Candace had various jobs at Uber Technologies, Inc., where she assisted in managing their response to regulatory investigations and provided advice on consumer protection, safety, security, privacy, and law enforcement response.
  2. David Mazières – Founder and Chief Scientist: Professor of Computer Science at Stanford University, Mazières oversees the Secure Computer Systems research team and serves as co-director of the Future of Digital Currency Initiative the Center for Blockchain Research. Operating systems and distributed systems are among his areas of research interest, with a focus on security. In addition, he helped form the SDF. Mazières graduated from Harvard with a BS in computer science in 1994 and MIT with a Ph.D. in electrical engineering and computer science in 2000. The Oakland distinguished paper award is among his honors (2015)
  3. Denelle Dixon – CEO and Executive Director: The Stellar Development Foundation, a non-profit group leveraging blockchain to make money more movable, markets more accessible, and people more empowered, is led by Denelle Dixon as CEO and Executive Director. Dixon was the COO of Mozilla, one of the most successful mission-driven open-source companies, before joining Stellar. She oversaw the commercial, revenue, and policy teams at Mozilla during her time there, leading efforts to maintain Net Neutrality and advance global efforts to give individuals control over their data.
  4. Jason Chlipala – COO: Early in his career, Jason worked as a product manager at Data science, a deployment strategist at Palantir Technologies, an associate at Davis Polk & Wardwell LLP, and an associate at Covington & Burling. He joined Nuclear as CEO in 2017 and then joined Chain as Head of Product Execution. Jason initially began his career as a tax and corporate lawyer, but when he joined Palantir, he transitioned to the technology sector. There, he oversaw groups of engineers, data scientists, and designers who created unique solutions for data issues at big businesses.
  5. Jed McCaleb – Founder and Chief Architect: The co-founder of Stellar and an American programmer, McCaleb is 46 years old. Additionally, McCaleb was a forerunner in developing blockchain and decentralized systems. He founded eDonkey2000 in August 2000, one of the biggest file-sharing networks. He established a different business in 2007 that produced the well-known videogame The Far Wilds, which was ultimately given to a group of fans. The popular trading card website Magic: The Gathering Online Exchange was also developed by McCaleb. The website was later purchased by Mark Karpelès in 2011 and changed into Mt. Gox, a Bitcoin exchange. McCaleb co-founded Ripple as well, however, he departed the business in 2013.
  6. Jordan Edelstein – CMO: As the chief marketing officer for SDF, Jordan Edelstein has years of experience in the field. Before this, he held positions as the General Manager for General Mills, Senior Vice President of Marketing for Kabam, Vice President of Marketing for Electronic Arts, and Chief Marketing Officer for Foxnet. He holds a degree from Northwestern University and currently resides in San Francisco. Jordan Edelstein studied at Amherst College, earning a Bachelor of Arts in German and European Studies in 1994.
  7. Justin Rice – VP of Ecosystem: In this capacity, he works with members of the Stellar ecosystem to coordinate developments on the Stellar network to promote the system’s continued growth and development. Before taking on his present position, Justin worked in product development for Stellar, contributing to creating the StellarX exchange using Stellar’s open-source software. Harvard University awarded him a Bachelor of Arts in Comparative Literature.
  8. Mark Heynen – VP of Business Development: From Google’s early foray into maps in the middle of the 2000s through Facebook’s early mobile initiatives and finally the launch of PayJoy, a Silicon Valley-based fintech, in 20 countries, Mark Heynen has led go to market in emerging markets for large and small enterprises. He is the Stellar Development Foundation’s vice president of business development. Mark had direct knowledge of the difficulties and potential of working in emerging markets because this company had clients in 18 countries and more than 250 employees in India through an owned subsidiary. Mark is currently an advisor for several startups.
  9. Nicolas Barry – CTO: Since 2017, Nicolas Barry has served as the company’s chief technology officer. He has extensive IT experience working for prestigious companies like Microsoft. Nicolas Barry studied mathematics and computer science at the Ecole Nationale Supérieure D’Electronique, Et D’Hydraulique De Toulouse (ENSEEIHT) in France from 1995 to 1997. Barry held the positions of Principal Software Engineering Manager, Senior Lead Software Engineer, and Senior Development Manager. From September 2014 to September 2017, Barry worked as a software developer for Stellar before being appointed Chief Technology Officer (CTO).

The Stellar Team


  • Stellar Partnership with MoneyGram: One of the world’s most extensive fiat transfer services is MoneyGram. Due to a lawsuit, it stopped utilizing Ripple and teamed up with Stellar Development Foundation to support international trade through a blockchain-based network.
  • Ukrainian Partnership: To digitize the “hryvnia” as a CBDC, the Ukrainian government has chosen the Stellar Development Fund. To assist Ukraine in creating its first national digital currency, an MoU was signed by the Stellar Development Fund and the Ministry of Digital Transformation of Ukraine.
  • Tala – Stellar Partnership: Tala is a digital finance company that makes financial services affordable for everyone. It operates in Kenya, India, Mexico, and the Philippines to give unbanked people access to digital services.
  • Circle Brings USDC to Stellar: The USDC stablecoin is used by MoneyGram, Tala, and other similar services that have joined with Stellar Development Fund to link fiat currency and cryptocurrencies. Few users are aware that Circle supports the USDC on Stellar.
  • Flutterwave – Stellar Partnership: An African fintech business called Flutterwave offers payment infrastructure so that clients can make and accept payments from anywhere in the world via online (website & mobile) or in-person channels (Point of Sale).
  • IBM partnership for global payments which is focused towards bringing big banks on board.
  • Partnered with Deloitte, one of the biggest accounting firms in the world.

What Is XLM Token?

What Is XLM Token

The XLM token is a digital asset used to represent the value of the Stellar network. The token is based on the Stellar Consensus Protocol, a decentralized system allowing fast and secure transactions. The token is also used to fuel the Stellar network, which manages the distribution of funds and provides a platform for applications to build on.

Basic Information About XLM

  • Token name: Stellar Token
  • Ticker: XLM
  • Blockchain: Stellar
  • Token Standard: BEP20
  • Contract: 0x43c934a845205f0b514417d757d7235b8f53f1b9
  • Total supply: 50,001,787,624
  • Circulating Supply:25,251,538,364

Read more: BEP2 vs BEP20 vs ERC20: Which Is The Best Choice For You 2023?

Token Allocation

  • Direct Sign Up: 50%
  • Partnership: 25%
  • Bitcoin Program: 20%
  • Stellar Development Foundation: 5%

Token Allocation

Price of XLM Today

  • The XLM price will typically trade at $0.11 in August
  • An average daily volume of 124,470,118
  • Market Cap: $2,764,137,919

What is XLM Used For?

The Lumen coin and the Stellar network do not explicitly interact. Having said that, you cannot use the network if you do not own some tokens.

There are various uses for lumens:

  • The primary use case of XLM is as a currency. The transaction fees on the Stellar network are currently low enough that one can conduct thousands of transactions for less than a penny. Given the low cost of transactions, Stellar aims to serve as a major player in the remittances and cross-border payments space, similar to other projects in the space like XRP.
  • XLM can also be used for creating digital assets within the Stellar network
  • By serving as a bridge, lumens can occasionally assist trades between currency pairs where there isn’t a significant direct market.

Read more: Ethereum Vs Ripple: ETH Vs XRP. Which Crypto Is Better In 2023

How to Buy XLM Tokens?

  • To buy XLM crypto, first choose a reputable cryptocurrency exchange such as Binance or Coinbase. Then create an account on the exchange and verify your identity.
  • Once your account is verified, you can deposit fiat currency (USD, EUR, etc.) or cryptocurrency (BTC, ETH, etc.) into your account.
  • Once your deposit is processed and Find Lumens cryptocurrency by typing “Stellar Lumens” or “XLM” into the search field and selecting “Trade.”
  • Purchase XLM cryptocurrency : choose your investment amount for XLM, starting at $10.
  • Confirm your order.

Read more: Coinbase vs Binance: Which Crypto Exchange is Best?

How to Store XLM Coins?

Cold wallets

The most secure way to store a significant amount of XLM is typically advised to be offline in a hardware wallet. One of the most well-known hardware wallets on the market, the Ledger Nano S provides a convenient and secure location to keep your bitcoins.

The Nano S is a compact and portable gadget that uses USB to connect to your computer and supports a variety of digital tokens, including Lumens (XLM), Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Dash (DASH). The Nano S is simple to set up and integrates with Ledger’s own companion apps as well as other compatible online wallets and software to let you manage your holdings.

Hot Wallets

This option is less secure than hardware wallets, but it is such a convenient way to store your cryptocurrencies that you can manage your assets easily. Cove Markets recommend you should choose Metamask or Trust Wallet in this section.

Read more: 

Goals of Stellar Blockchain

Goals of Stellar

The objective is for Stellar to continue to be one of the easiest networks for developers to utilize to provide their users with high-quality and secure applications while allowing it to change to keep up with the competitive environment in the blockchain sector.

It will continue strengthening the network’s fundamental principles, including secure and fair asset issuance and payment access. The developers will also keep emphasizing interoperability with the conventional financial system by creating wallets, exchanges, CBDCs, and assets issued by banks and increasing anchor capabilities.

Stellar Future

The prospect of Stellar is looking bright as the crypto-currency continues to surge in value. Currently ranked 5th on CoinMarketCap with a market capitalization of over $4 billion, Stellar has seen a tremendous increase in value since early 2017. With a strong team of developers and an active community, Stellar is well positioned to continue its growth in the months and years to come.



How to earn XLM tokens?

You can stake Stellar (XLM) on 9 Exchanges and get up to 36.5% APY, such as: crypto.com, Bitrue, AAX, Youhodler, Nexo, Celsius,…

Should you invest in Stellar?

Possibile Worth. Stellar blockchain does not intend to produce any more lumens after having destroyed half of them. This may raise questions about its investment potential, but it’s crucial to understand that the coin will eventually become scarce.

Read more: TOP 12 Best Altcoins To Trade & HODL In 2023: Best Trading Coins For Beginner

Is investing in XLM risky?

As an illustration, the price of XLM increased from less than 9 cents in November 2020 to 73 cents in May 2021 before declining to its present level, which is just above 14 cents. This total rise indicates that XLM might be a good long-term investment, but it comes with a high level of risk.

Why is Stellar popular?

It increased the effectiveness of financial systems and banks. On the other hand, Stellar was created for the common user and those in underdeveloped nations in mind. The platform offers easy, rapid, and affordable transactions that provide users access to the global economy.

Is it the right time to buy XLM?

With the recent market volatility, some investors wonder if now is the right time to buy XLM. However, there is no easy answer to this question. While XLM may be a good investment at this time, it is also essential to consider factors such as your investment goals and risk tolerance. Ultimately, you will need to make your own decision about whether or not to invest in XLM.

What can I buy with XLM?

You can use XLM to buy various things, including:

  • Cryptocurrencies: You can use XLM to buy other cryptocurrencies, including Bitcoin and Ethereum.
  • Fiat currencies: You can use XLM to buy currencies such as USD and EUR.
  • Commodities: You can use XLM to buy commodities like gold and oil.
  • Stocks: You can use XLM to buy stocks in companies listed on stock exchanges.

How is Stellar different from other blockchain projects?

First, it uses a unique consensus algorithm that allows it to be much more scalable than other blockchains. Second, it has a built-in decentralized exchange that allows users to trade assets without having to go through a centralized exchange. Finally, Stellar also has its native currency, Lumens, which can be used to pay transaction fees and power the network.

Can I convert Stellar coins to other currencies?

Yes, you can convert Stellar coins to other currencies. There are a few different ways to do this, but the most common is to use a Stellar token exchange. There are many different Stellar coin exchanges available, so you should research which one would be best for you.

How can I find more information about Stellar?

The best way is probably to search the internet, as there are many Stellar-related websites and forums where you can find helpful information. Additionally, Stellar has its website (stellar. org), which contains a lot of useful information about the project.


Although purchasing XLM is a little more complex than buying most well-known cryptocurrencies, the procedure shouldn’t take too long, given the range of exchanges available today. The “good” twin sister of Ripple and XRP is thought to be Stellar and XLM. Although the company has made significant strides since its founding in 2014, it’s not obvious if purchasing XLM is a wise decision given that the Stellar network does not directly use it.

Do you have any previous Stellar Lumens experience? Do you have any more inquiries? Comment below with your response and let me know.

Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.

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