Do you want to know the difference between stellar and lumens? Then this guide can help you to understand a lot about it now. In general, stellar is not easily understandable for most of the users since its terminology can be very different when compared to other supported cryptocurrencies found in the Blockchain wallet. The native asset of Stellar is having a completely different name such as Lumens (XLM), whereas the other assets are sharing their names with their respective networks. Those respective networks are bitcoin, the cryptocurrency and bitcoin, the network.

These terms are not the same. Here stellar only refers to the network completely, to the system and community and protocol. The lumens is considered to be the currency that can able to power the network that users can use the deal with and send and receive exchanges among other currencies.

Impact of Stellar and Lumens:

In general, stellar cryptocurrency mainly refers to the virtual or digital currency that can be developed by a stellar development foundation. Here the organization’s currency can be known as the lumen which can be traded on multiple cryptocurrency exchanges under the symbol XLM. Lumens can be effectively utilized by traders on the stellar network. It is a blockchain-based distributed ledger network and it can able to connect banks, people to facilitate low cost, payment systems, cross-asset transfer of value along with multiple payments.

Major Factors:

  • Generally, stellar is considered to be the decentralized protocol on the open source code to completely transfer the digital currency to fiat money across the borders
  • Stellar is considered to be the most advanced altcoins of the past 5 years with a market cap of around $1 billion
  • The stellar cryptocurrency of Blockchain is known as the lumen and it is known as the token to trade under the XLM symbol

Process of Stellar Cryptocurrency:

Generally, cryptocurrencies are known to be virtual or digital currencies that can be developed to trade on various decentralized networks known as blockchains. By making ensure, they could never be counterfeited such as regular currencies. It can also prevent them from getting double-spent. The cryptocurrencies will never be issued by the central banks unlike fiat money; this means the government will never interfere in the process of trading activity. A more number of cryptocurrencies can be popped up based on the bitcoin success along with lumen.

Future of Stellar:

The primary focus of stellar is on developing economies in the areas of bank loans and remittances to those who are outside of the scope involved with banking services. Here you have to know the fact that; stellar will never charge institutions or individuals for making use of this network to the extreme. Stellar is great at supporting the distributed exchange mode. This can let users send payments in particular currencies even though they can hold such credits in another. Here the network can be automatically able to perform the forex conversion. Then the receiver can able to withdraw their currency as similar through the partner institute such as a bank.

The cross-border payment and transfer system can connect financial units. Stellar mainly focus on reducing time lags and transaction costs in the most effective manner. Stellar can able to work very much similar to technologies such as bitcoin. Its major distinguishing feature and impact are said to be its consensus protocol. The current stellar is responsible for creating a Stellar Consensus Protocol (SCP) where the stellar can become the open source system. The transaction authentication process under this protocol can be confined to choose a set of reliable nodes rather than being left open to the complete network of nodes.

Each node available on the network mainly chooses the set of transaction and trustworthy nodes which is considered approved once that can be authenticated based on all nodes which are among the part of the selected group. This type of shortened approval cycle can let a stellar network make transactions faster and better and reduce transaction costs.

Working of Stellar’s Blockchain:

The transactions that take place on the stellar network can be added to the distributed and shared public ledger. This is considered to be the database that anyone can able to access in the world. Stellar make use of its unique strategies and method to reach consensus on transactions accurately and quickly.

Stellar consists of four major aspects when you are going to add transactions to the Blockchain or ledger:

Freedom of participation

Here you have to know the fact that anyone can able to join the consensus process and none of them are having the majority of the decision making power.

Low latency

Cheap and fast transactions can be confirmed in some seconds.

Freedom of trust

The nodes which are taking part in the consensus system can able to choose their required set of trusted nodes and it can revoke the trust from bad actors at any point in time.


Even when bad actors join the network or nodes fail, consensus can able to be reached and the network can be there at a better conclusion.

Why Were Lumens Invented?

Lumens can be mainly invented to help people to face problems that can be presented by various cross-border transactions. These kinds of problems are high fees and lengthy transaction times. Lumens can be required to solve these issues for retail users by offering an inexpensive and quick method of sending money all over the world.

Here the developers mainly understand not everyone around the world is having the access to get involved in financial services. Even if they do it, sure it might be somewhat expensive for them. Hence, this team is mainly dedicated to offer access for people all over the world to financial systems based on their active network connection.

Working of Lumens:

In general, lumens are considered to be the tokens that can be used by the wider stellar network. It is mainly to sum huge amounts of money and convert it in the form of currency. The network is said to be the decentralized peer-to-peer network. Lumens will allow for one particular currency type to be sent from one peer and arrive as a different type of currency to the receiver. At the time of going for the journey to the receiver, then it will go for transition through the number of various currencies. In this process, the stellar network does this via checking out when the straight currency pair swap is readily available.

In case it is not possible, then it can check out if there is any requirement for the initial currency from the lumens hold. When the lumens go this, then it can search for the pair of destination currency and lumens. It will allow the simple transaction of value around currencies that do not have the commonly traded pair.

Within the stellar network, this can be made possible with the help of anchors. Then here anchors facilitate the currency exchange around the network by being able to hold the deposit along with issuing the credit in some other different currency. This kind of process is very much fast since the anchors take place on the same type of network.

Are Lumens Real Money?

The main usage of tokens is to act as the bridge between some other currencies when lumens do not have any intrinsic value. It can be very much helpful to know about it thoroughly as a lot more apart from money. Lumens are having the ability to convert currency for users in a short span of time can distinguish them from fiat currencies. This is mainly known as real money.

Benefits of Lumens:


In general, the cost of the lumens transfer is very much less and hence it can be made as the most competitive method to transfer money when compared to some other methods.


When you need to transfer money to anyone, then making use of lumens as the transfer method is considered to be the right choice. It will get completed in around three to five seconds. It can able to reach the recipient faster than the wire transfer, especially when it comes to cross border payment.

Ease of money exchange

There will never be a simple currency pair to money exchange for certain currencies from one currency to the other. By making use of lumens, however, this can be carried out for the recipient and sender on their behalf without any issues.


Basically, the stellar network can be the decentralized network where none of the authority controls the movement of the lumen. This type of community can able to effectively authorize the transactions and the transaction record that can be stored on the Blockchain. This can able to be accessed by everyone.

Ease of access

Retail users need to access lumens in some software and internet connection as the form of lumens-ready wallet. It can also access as an online exchange.

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