Stellar (XLM) or Stellar Lumens is having a huge attraction in recent times. Electronic money enthusiasts can know the currency with another name as "XLM", XLM is Stellar's currency unit traded on different exchanges. However, there are still many people who are confused about the way this token is created and their intended use. So what is Stellar Lumens?
Stellar Lumens or Stellar (XLM) is an open source payment technology branched from Ripple, with the same founder, Jed McCaleb. Stellar's aim is to connect financial institutions and contribute to reducing costs and time for cross-border transfer transactions. Both Ripple and Stellar share the same software protocol, but only on development goals.
Stellar began branching out of Ripple in 2014 to develop the Stellar Consensus Protocol (SCP). Stellar aims to be an open source system, while Ripple is a closed system.
The customers of the 2 projects are also different. Ripple XRP works with banking and financial institutions to implement cross-border payment channels. Stellar focuses on newly developed markets to leverage loans for people without bank accounts
Stellar allows individuals to trade money directly with each other, using Lumens (XLM) as a means and to handle traditional monetary aspects.