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What is Stellar? Is it a good investment for 2018?



The Stellar network was founded in 2014 and one might confuse it with another most trending network protocol, Ripple. Founded by Jed McCaleb.

Understanding the reasons why the Stellar network is here to stay.


It is no wonder that Bitcoin created a spark in the cryptocurrency market in 2017 by reaching an all-time high, among all the other currencies ever existed, which has given rise to a number of other cryptocurrencies including Stellar who fight with each other for its financial adoption like Bitcoin. Bitcoin, although is the most popular cryptocurrency, it’s limited market capital is one of the setbacks along with its scalability.

The Stellar network

The Stellar network was founded in 2014 and one might confuse it with another most trending network protocol, Ripple. It is a fact that the founder of both the networks is the same person Jed McCaleb. He had founded Ripple earlier but had to depart from it due to the difference in opinion between him and the other board of directors at Ripple. Along with Joyce Kim, he initiated the Stellar project in 2014 in order to provide a cheap and quick settlement system. The open source software is registered under the Apache Licence, it’s open source nature makes it free to use by anyone interested.


The Stellar network is most famous for settling the transactions anywhere between 2 to 5 seconds, which facilitated the users of the Stripe payment Protocol, in order to settle the transactions as fast as possible. This can be considered as a foundation for partnering with the most famous IT company, IBM.

Decentralisation upper hand of the Stellar network

Many cryptocurrency network protocols are, to an extent, centralized. This is evident from the incident when McCaleb funds were frozen on the Ripple network due to the disagreement between him and board members, this incident is a direct example of how one can control others funds according to their wish.


The Stellar network seems to be incorporating the best features from both the Ripple Network and Bitcoin protocol. When it comes to attributes like transaction speed, transaction cost, and scalability, Stellar seems to be providing a viable solution. The Stellar network aims in ending the Global poverty by reducing the transaction speed and cost. This philanthropic principle of the network sets it apart from all the other cryptocurrency protocols.


The native currency of the Stellar network, Lumen is inflationary in nature. Each year 1% of the cryptocurrency is created and the fees are recycled. The Consensus Protocol used by the Stellar core is known as the ‘Stellar Consensus Protocol.’ The consensus protocol has four important attributes. They are.

  1. Decentralized control
  2. Lesser latency
  3. Flexible Trust
  4. Asymptotic security

A number of Stellar servers are installed across the world which comes to a consensus every 2 to 4 seconds to verify the authenticity of the ledger. A ledger has a record of all the accounts on the network. A regular verification makes sure that no data is being tampered with on the network.


The Stellar network is so powerful that it is estimated to single-handedly replace the Ripple and Bitcoin network. Stellar is putting a firm foundation with its decentralized nature from Bitcoin and a fast settlement system from Ripple.

Future of Stellar

The cryptocurrency is currently trading around $0.232908 and is on the 7th position according to the Coinmarketcap with respect to its market capitalization. The future of this particular cryptocurrency seems to be highly promising as it is backed up by robust companies like IBM and KlickEx. Also, companies like Deloitte have incorporated this system and working four weeks of time they experienced a 40% expenditure drop in their banking sector.  IBM along with 12 other banks across the world have joined hands for the faster transaction of financial assets throughout the world.


The cryptocurrency system incorporates an amazing pair of the feature, i.e high returns, and low risk. The Ripple network is currently under risk due to its Centralised nature, this is where Stellar network plays a major role in taking ahead of the world economy. Although the price chart seems to be bearish, on a short-term basis, the cryptocurrency is to experience a widespread adoption, when viewed from a broader frame of reference.


In the current situation, most of the cryptocurrencies which existed a few months back have completely vanished now. Hence, one must be careful about their investments as their market is completely subjected to risk. Although the cryptocurrency is experiencing widespread adoption, a sudden downfall might happen due to unexpected circumstances.


Is Stellar going to overtake Ethereum?



Recently there has been a migration by crypto projects away from Ethereum and Stellar Lumens has been one of the primary destinations.

Recently there has been a migration by crypto projects away from Ethereum and Stellar Lumens has been one of the primary destinations. Things like being able to easily generate dividends, limit who could hold tokens, time-bound functions for transactions as well as built-in token issuance capabilities making it super easy to launch a token and a dex which gives immediate liquidity without the need to go out and seek a third party exchange. Considering how hard and expensive it can be to get listed on a major exchange, this is actually a very powerful feature of stellar and all of this does offer a significant advantage over ethereum but ethereum also has its strong advantages as well.

Ethereum has the biggest developer community and Ethereum also has the widest acceptance in terms of wallets, exchange pairing, services catering to ethereum and other blockchains trying to build bridges to ethereum and a much larger amount of Dapps. Ethereum crushes Stellar in the Dapp category. And of course, the ERC20 token standard is right now an industry staple when it comes to tokens.



Transactions per second are drastically different. Jed McCaleb, the co-founder of Stellar Lumes stated that Stellar can rather easily handle up to 4000 transactions per second with many more transactions possible as the network develops and depending upon the hardware used. Currently, Ethereum is around 15 transactions per second.



In terms of fees to send a transaction on the stellar lumens network costs 0.00001 XLM that is approximately equal to $0 at this time. While Ethereum transactions are costing less at the moment with only a few cents on average for each transaction but this can be a lot more during peak traffic times. However, Ethereum team has promised lower fees in future.


Stellar Lumens Starlight:

Starlight is an implementation of bidirectional payment channels on Stellar. Payment channels will allow parties to transact privately, instantly and securly with zero fees. The Starlight is still in its early phases but it will be powerful when it does take off.


Public Figures:

Ethereum has people like Vitalik Buterin and Joe Lubin regularly going to events and developer conventions representing ethereum and these are a real help in spreading the message about ethereum. In contrast, the stellar lumens team seems to avoid the limelight.



Stellar has some good partnerships such as IBM who says that Stellar is their go to the public blockchain. Stellar also recently received Sharia Compliance Certification which will allow Stellar to access a huge market of more than a billion Muslims in countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE and parts of South East Asia. These places will now be able to integrate Stellar technology in their Sharia Complaint product and service offerings as some of these regions are actually restricted due to Sharia Banking Laws that do not allow Non-Sharia-compliant assets.
But Ethereum kills it with adoption. The consensus design studio is a major industry force but what is the most outstanding is the Ethereum Enterprise Alliance. With members of the alliance including many of the world’s top banks, accounting firms, universities, corporations, governments, ministries and of course blockchain companies.



In terms of supply of the cryptocurrency, there is still a huge amount of XLM around 85% of the total supply to enter into the market which will happen slowly over time. Ethereum, in contrast, is on a fixed emmission code based release curve.

Ethereum in its correct form has a lot of issues majorly scalabily and speed. With so many developers working on plasma, interchain projects etc. all focused on ethereum but Stellar does today what Ethereum needed to do yesterday. All the Ethereum partners, developers and Dapps in the world will end up being worthless if ethereum does not deliver on its promises. That does not mean that Stellar is the only game changer. EOS, NEO and many more are all biting at ethereum’s heals. Infact, Tron’s founder Justin Sun is even calling for projects to move from Ethereum to Tron.


While Vitalik and company are all working on Ethereum, there are hosts of other blockchains who are out there right now eating Ethereum’s lunch. Stellar Lumens being one of them. Will Ethereum still be highly relevant by the time it delivers on its promises? What are your thoughts? Tell us in the comments secion below.

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Stellar Wallet to Airdrop $125 Million Crypto: Will Airdrops also go the ICO Way?




A Stellar-Wallet keeper, named simply as Blockchain, has announced on Tuesday the launch of an airdrop of Stellar Lumens (XLM).

A Stellar-Wallet keeper, named simply as Blockchain, has announced on Tuesday the launch of an airdrop of Stellar Lumens (XLM).  The airdrop it is valued at $125 million, making it probably the largest such consignment ever to be distributed to users in following months.

Each user shall receive $20 and thereby draw them into owning or trading in these decentralized assets. The estimated value of one lumen to the dollar stands at $0.2538 varying by 5.05% in trading times, according to market charts. The Stellar Lumen is the six highest in market cap rankings currently.

CEO of Blockchain Peter Smith made in his Tweet called the airdrop the “biggest digital giveaway,” adding that the introductory offer was on the back of adding XLM to the blockchain wallet.


Airdrops and their Ethics

Airdrops are the latest and most funky way to feed users with cryptos and get them to adopt the decentralized system. Airdrops are marketing gimmick or the generosity of spirit of wallet providers the question of ‘airdrops,’ and their genuineness looms large.


More by Blockchain

The Blockchain giveaway of XLM says it is encouraged by its “30M wallet users” and is excited that XLM is now available on their wallet platform with full support.” Additionally, the wallet has said that it will not keep any of the XLM for themselves.

According to Smith, the reason Blockchain chose the Airdrop method is because it will help drive decentralization as well as the adoption of new networks. For crypto users also, it is a highly useful option. It will allow users to trade, test as well as transact on crypto assets and will not have to worry about technical issues involved in buying these assets or mining these assets. The bottom-line is that the Blockchain Wallet is the safest method to use crypto.


Why Stellar was inducted

Besides, with the launch of Stellar on Blockchain, there is added scope, the CEO believes. The platform on which Stellar is built allows easy scaling solutions, which is just the base which Blockchain itself needs to move forward to meet strategic goals. Stellar’s token XLM is low cost, fast and easily lends itself to cross-border transactions despite millions of transactions happening in parallel.

The advantage with Stellar is that it is easy to create tokens which are customized for such use. They also allow real-world services or virtual services and more importantly a functioning ecosystem.


Airdrop Partners

The wallet provider has indicated that the airdrop will be in association with Standford’s tech initiative called, along with Network for Good. These organizations will provide the necessary transformational technology for building a promising future, Blockchain authorities said.  The use of airdrop is to provide a stepping stone for the users to obtain and access tokens which will give them control over their financial future.

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#Daily Price Analysis

XLM Daily Trading Signals: 26 October



Dominant bias for STELLAR (XLM)- Bearish

Resistance Levels- $0.2550, $0.2600, $0.2700

Support Levels- $0.2150, $0.2100, $0.2050


XLM is in a bearish trend. After breaking down at the 34 exponential moving averages on 24th October, the bearish pressure has been on a nice roller coaster to the south forming lower lows. $0.2410 was the low on 24th October while 25th October low was $0.2387. This is characteristics of a down trending market that produces lower highs and lower lows. The 4-hour opening candle at $0.2388 was a bearish marubozu which signals bears presence and pressure.


XLM 4-hour chart

XLM 4-hour chart


With XLM price below the 34 EMA and the relative strength index at 39% which is the sellers’ zone, these suggest downward movement in the cryptocurrency due to the Bears’ pressure.

Moreover, the inverted head and shoulder pattern plays out well with the right shoulder developing. The bears may be aiming at a retest of $0.2255 in the support area.

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