Stellar XLM

Stellar (XLM) is an open-source, decentralized blockchain designed for fast, low-cost cross-border payments and the issuance of digital assets. Launched in 2014, it focuses on connecting financial systems and moving value efficiently, with XLM serving as the network's native asset.

How Stellar works

Stellar uses the Stellar Consensus Protocol, a federated agreement model rather than energy-intensive mining, which allows transactions to settle quickly and cheaply. The network includes a built-in decentralized exchange and supports issuing tokens that represent assets such as currencies, enabling conversion between different asset types as part of a payment.

The native token XLM, called the lumen, is used to pay small transaction fees and helps protect the network against spam. Accounts are also required to hold a small minimum balance, which discourages the creation of useless accounts and supports overall network health.

What Stellar is used for

• Cross-border payments: moving value between currencies and regions at low cost.
• Asset issuance: organizations can issue tokens, including stablecoins, on the network.
• Remittances and micropayments: low fees make small transfers practical.
• Built-in exchange: assets can be traded and converted on-chain.

Risks and considerations

Like all cryptocurrencies, XLM is volatile and can move sharply. Adoption depends on partnerships and real-world payment integrations, which can change over time. Regulatory treatment of payment-focused networks and the assets issued on them continues to evolve, so prospective holders should review official sources and understand custody trade-offs before participating.