It is not a particularly happy moment for cryptocurrencies, which seem to pay off even the loudest rumors that the Chinese government would like to close a series of exchanges and limit activities and services related to digital currencies. Signals that have been interpreted very negatively by the markets leading to a general depreciation of the sector.
In such a negative scenario, however, Stellar Lumens shines, the only virtual uniform that has managed to go against the trend, achieving a contained growth. A signal of confidence from investors that once again confirms the goodness of the project and lays the foundations for a bright future.
What is Stellar Lumens and how it was born
When we talk about Stellar Lumens, we should point out that in reality with the first name indicates the platform based on blockchain technology born in 2014 with the specific aim of creating a system suitable for transactions, quickly and at low cost, while the second characterizes the real cryptocurrency that was launched through an ICO (Initial Coin Offer) in the same year, with which the operations would be carried out.
From what has been said so far, we can easily understand how the vision that has distinguished the project is radically different from that typical of Bitcoin and aims to become an instrument able to better serve online transactions between various subjects who ask at the same time speed , safety and limited costs.
Stellar Lumens, the reasons for its growth
What are the reasons that push the markets to trust Stellar Lumens? The first is the great speed that characterizes the transactions conducted with this cryptocurrency, which are performed within a period of two to five seconds, then with a speed unknown to Bitcoin, for example.
The second is the great confidence that Stellar Lumens succeeds in attracting large companies, starting from IBM, which has resulted in a worldwide agreement which is the real calling card for a project that, with all evidence, responds to a series of needs of the real economy, not limiting itself to being a mere speculation as it happens in the case of other digital coins.
Even other large companies, starting from Deloitte, Tempo Money Transfer and Parkway have decided to turn to Stellar technology, so much that many analysts are encouraged to anticipate the possibility for it to soon undermine the positions held today by Ripple.
The differences between Stellar Lumens and Ripple
It should however be emphasized that if Stellar Lumens was born with the specific intent to compete with Ripple, based on similar characteristics, starting from the extreme speed and security of transactions, the startup project presents some decisive differences that could eventually lead the two currencies to coexist.
If in fact Ripple specifically addresses the banking system and intends to establish itself as an exchange platform between institutions, even at a international level, Stellar Lumens looks instead at the world of small businesses and the family economy. A difference in the setting actually very marked, which could finally allow both to assert themselves without stepping on each other’s feet.