Video: Understand Stellar Lumens in 60 Seconds

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More information on Stellar can be found on their website Stellar.org or within a recent review where we covered the company and technology.

Sending money internationally sucks. It’s slow, unreliable, and expensive. The Stellar network is a decentralized blockchain designed to solve those problems. It allows users to send and receive fiat currency quickly and easily across borders. Fiat transfers take advantage of Stellar’s partnerships with banks and other financial organizations.

But the Stellar network can also transfer value in the form of Lumens, Stellar’s digital currency. Stellar uses a consensus-based algorithm rather than a proof-of-work mining system like Bitcoin, which means payments can be processed very quickly. It also means Stellar’s transaction fees are incredibly low: large sums can be transferred in Lumens for fractions of a cent. Those transaction fees aren’t collected by anyone; instead, they’re fed back into the network.

The market cap for Lumens is above $2 billion, and Stellar is well on its way to realizing its dream of providing an easy, fast, and cheap global financial transactions.