What is XLM Coin? Tutorial Definition

What is XLM Coin? XLM Coin is one of the digital assets developed to accelerate blockchain-based financial transactions and reduce costs. XLM Coin, which stands out with the innovative solutions it offers especially in international money transfers, has gained an important place in the crypto ecosystem in a short time. You can continue reading to learn the details about XLM Coin. What is XLM Coin? Stellar (XLM) is a decentralized blockchain platform that aims to connect financial systems and make cross-border money transfers fast, low-cost and reliable. International money transfers in traditional banking systems can take a long time and require high transaction fees. The Stellar network has been developed to make money transfers between individuals and financial institutions faster and cheaper. It aims to complete the money transfer process in seconds and minimize costs. The Stellar network offers an important infrastructure not only for individual users, but also for large companies and financial institutions. Large companies such as IBM also use the Stellar network to develop cross-border payment solutions. Stellar works with an innovative blockchain protocol called the Stellar Consensus Protocol (SCP) to ensure secure, fast and cost-effective transactions. XLM Coin, the native cryptocurrency of the Stellar network, is used to ensure the security of the network, cover transaction fees and prevent malicious activities. It also aims to increase financial participation by providing innovative solutions to those who do not have access to banking services in developing countries. How Much Is XLM Coin Supply? Limited? The supply, which was initially determined as 100 billion XLM, was reduced to 50 billion with a decision taken in 2019. Approximately 30.61 billion of this supply is in circulation. The rest is held by the Stellar Development Foundation (SDF) to support the development of the network and the growth of the ecosystem. The Stellar network does not work with a mining-based system like Bitcoin, and new XLM production is not made. Therefore, total supply is limited and may offer a more resistant structure to inflation. The technically controlled XLM Coin supply is managed by the Stellar Development Foundation. Tokens currently in circulation make up about half of the total supply. The rest will be released to the market within a certain plan. Since no new XLM Coin is produced, only existing tokens are used in transactions on the network and thus the supply balance is maintained. This structure aims to keep the value of XLM stable and encourage its use in the long term. What is XLM Coin Infrastructure? On Which Network? XLM Coin uses Stellar blockchain infrastructure. Stellar is an open source and decentralized system that runs on its own private blockchain network. Unlike common blockchain networks such as Ethereum, Stellar uses a special consensus mechanism developed by itself called the Stellar Consensus Protocol (SCP). This protocol makes transaction confirmations faster and more cost-effective than Bitcoin's Proof of Work (PoW) or Ethereum's Proof of Stake (PoS) systems. SCP creates a secure and high-performance network based on the Byzantine Fault Tolerance (BFT) algorithm. In this way, Stellar enables fast and low-cost transactions between individuals, financial institutions and payment providers. One of the biggest advantages of the Stellar network is the speed of processing. Transfers are usually completed within 2-5 seconds, with transaction fees close to almost zero. This aspect offers a great advantage, especially in cross-border money transfers. Stellar facilitates the transfer of digital assets and fiat currencies, acting as a bridge not only between individuals, but also for banks, payment providers and financial institutions. Due to its high transaction capacity and low-cost structure, even large financial institutions such as Visa and Mastercard use the technology offered by the Stellar network. Who is XLM Coin Owner and Which Country Did It Come From? Stellar (XLM) was developed in 2014 by Jed McCaleb and Joyce Kim as a US-based project. McCaleb was one of the founders of Ripple (XRP) before founding Stellar, but left Ripple due to disputes over the project. It is also one of the world's first major Bitcoin exchanges, Mt. McCaleb, the founder of Gox, Mt. After Gox's security problems and bankruptcy, he launched Stellar to create a more secure and decentralized payment network. The Stellar network and XLM token are governed by the Stellar Development Foundation (SDF), a non-profit organization. Based in San Francisco, this foundation continues its work to support the development of the Stellar network, connect financial systems and provide global payment solutions.