Is Stellar a good investment, and where can you buy XLM in Canada?
About Stellar Lumens
Stellar Lumens is a blockchain-based distributed ledger platform which enables real-time transactions to occur anywhere in the world in as little as five seconds.
With an order book, Stellar acts as a decentralized currency exchange. You can sell, buy, and manage your assets here, with XLM acting as an intermediate currency for payment of transaction fees. The currency helps users reduce transaction costs. To make financial services affordable and accessible, Stellar makes transactions seamless and reduces fees for micropayments and remittances.In 2015, the Stellar network issued 100 billion XLMs, and in 2019, the group announced it would burn over half of those coins. There are currently about 50 billion XLMs in existence according to Stellar's website; 20 billion are in circulation and 30 billion are retained by the Stellar Development Foundation for project development. There will be no more created.
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The Stellar network focuses on developing economies in terms of remittances and loans. It is primarily designed to target those who are not yet a part of traditional banking.
In comparison to other financial platforms, Stellar offers low transaction fees, which has attracted a large number of cryptocurrency users. Stellar network is often seen as a competitor to the Ripple network, with Ripple catering to the transfer of funds between banks, and Stellar enabling individuals who are not part of the traditional banking system to make fund transfers. Its popularity has surged in various developed countries, thanks to its straightforward, rapid, and cost-effective approach.
Another prominent feature of Stellar is that the community decides what projects the blockchain should focus on.
It is important to note that Stellar is one of the large corporations that are operating in the cryptocurrency market. Stellar is a centralized cryptocurrency network, with only a few validators. Though it has decentralized nodes, it has very few validators. The group has considerable control over XLM's operations and price movement with such an infrastructure.
Gamechanger
The potential gamechanger is that they’ve announced the launch of its Stellar Asset Sandbox. Users are now able to issue, mint, and burn assets through the Stellar testnet without having any coding experience. New smart contract platform Soroban has released its second preview, which aims to increase platform developer friendliness, scalability, and sensibility.
The Stellar Asset Sandbox allows individuals and businesses to easily create, issue, and manage digital representations of real-world or fiat assets on the Stellar network. This includes tokens for CBDCs, stablecoins, and securities, with custom and compliance tools provided by Stellar. Through these tools, businesses can expand their offerings, program assets, and enable real-time payments, allowing for global transactions and faster settlements. The Sandbox has been utilized by companies such as GMO-Z.com trust company and Novatti. The asset issuance website provides various resources, including an issuance guidebook, CBDC whitepaper, developer documentation, and integration partners..The ability to easily create and manage digital assets on the Stellar network through the Asset Sandbox is a significant development in the world of crypto and financial markets. By enabling businesses to tokenize assets such as CBDCs, stablecoins, and securities, Stellar offers a more accessible and efficient way to trade assets globally. With the built-in tools provided by Stellar, businesses can expand their offerings, program their assets, and complete transaction settlements within seconds. This could lead to increased adoption of the Stellar network and drive demand for its native token, XLM, as it is used for transaction fees and as a bridge currency between other assets on the network. As more companies utilize the Asset Sandbox and the Stellar network, the increased demand for XLM could potentially drive up its price.
Additionally, in October of 2022, the Stellar Development Foundation (SDF) declared the unveiling of the Anchor Platform. This solution makes it simpler and swifter for businesses to link to the blockchain, thus allowing banking and financial entities to connect to the Stellar network without worrying about high development costs and precious time.
Environmental-Friendly
Ethereum recently switched to the Proof-of-Stake (PoS) consensus algorithm, emphasizing the necessity of cryptocurrency networks to move towards more environment friendly solutions. This stage marks an important step forward in the evolution of blockchain technology.
Stellar stands out here due to its low carbon emissions and fast authentication process, thereby keeping energy usage at a minimum. This makes it a very attractive technology for businesses looking to improve their sustainability levels by reducing overall energy consumption.Major Partnerships
IBM has collaborated with it successfully, making it one of the few blockchain networks that has succeeded in doing so. IBM and Stellar have jointly launched a project to enable fintechs to use stablecoins to perform financial transactions.
Deloitte announced a partnership with Stellar in 2016, along with four other blockchain networks, to offer new technological capabilities to its global financial institution clients.Moneygram also announced a partnership with Stellar in 2021. With its integration with Stellar, the USDC stablecoin can be converted into cash and vice versa. As a result of the facility, cryptocurrencies can become more liquid and traditional and cryptocurrency markets can be integrated.
Flutterwave, a global payments technology company, announced two new remittance corridors between Europe and Africa on the Stellar network in October 2021.
In June of 2022, Nium and Stellar joined forces to provide modern money movement payouts to 190 countries around the world. The integration profoundly portrays the value blockchain methodology grants the current financial system,” according to Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. "At SDF, we are dedicated to connecting more parts of the globe with our network; this partnership with Nium is an exciting chance for us to dramatically widen our reach."
Conclusion
In 2023, the Stellar team plans to continue increasing network scalability and innovation. The expected trajectory for this coin with the launch of the Asset Sandbox is positive, and as Stellar continues successfully moving towards their goals of financial inclusion, the XLM coin will grow in step.
With Stellar, any financial institution doesn't have to build its own payment gateway, making the process innovative and specialized. Stellar's platform and customer costs are also incredibly low, making it the choice of many global financial institutions. The integration connects these global players in such a way that interoperability and communication between different systems are seamless.
Stellar's credibility is set to increase among its users with these recent advancements. Additionally, XLM is considered one of the more eco-friendly cryptocurrencies due to its faster consensus model compared to PoS and PoW. This makes it a preferred investment option for many.Stellar is a powerful technology platform and cryptocurrency that is gaining prominence as a payments network. Its user base is growing as it provides a simple and economical way to move funds outside the banking system. Its strategic partnerships and convenience make XLM a reliable crypto investment, and its integration of the global financial system is cutting fees. The SDF has also established a fund to help developers create applications for the Soroban smart contract platform. Market analysts are predicting a bullish price movement for the Stellar token in the near future, and as more projects join the Stellar ecosystem, the value of XLM should continue to rise. Since the Stellar blockchain does not intend to mint more tokens, its scarcity in the future will surely be reflected in its value, making XLM a potentially profitable investment asset for years to come.
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Additional Disclosure:
The views expressed in this article are the opinions of the author as of the date of publication and do not constitute a recommendation to buy or sell any asset. Opinions are subject to change without notice and the author is under no obligation to update their views on this blog. This is not investment advice and is being provided for informational purposes only. You should not rely solely on the information or opinions provided in our content, rather use them as starting points for your own due diligence and draw your own conclusions based on your own research. The author cannot guarantee the veracity or completeness of any information provided in this blog and will not be responsible for inadvertent errors or omissions. Please do your own due diligence and invest responsibly as you alone are responsible for your own investment decisions. Investments carry risk, are not guaranteed, and can lose value.
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