Stellar Lumens (XLM) is a crypto platform that is designed to enable the fast and secure transfer of money at low cost. It is essentially a matchmaker for currencies and facilities worldwide transfers and exchanges in any fiat currency and cryptocurrency. It is intended for individuals as well as for the enterprise users such as banks. It is very much like Ripple. The main differences are more of a focus on simplicity and scalability as well as on functionality to help move money in remote areas at lower costs.
Stellar Lumens makes it possible to send money across borders and facilitates low-cost payment between currencies in a manner that is similar to Ripple. Transaction using the Stellar network take 2 - 5 seconds to clear.
There are three different ways to do this: Direct exchange - You can make direct currency exchanges. If one person wants to trade USD for GBP and another person wants to trade GBP for USD, it can match them up and automatically carry out the exchange for the requested amounts.
Exchange via XLM - Stellar can use XLM as an intermediary currency where the amounts do not add up or where there isn't a direct exchange available. It simultaneously looks for buy and sell offers for XLM and the needed currencies. Once it finds a good offer, then I handles the exchange. Chain of conversions - Stellar will try to handle any currency by finding a chain of conversions, such as GBP to BTC to EUR to USD, if no other options are available. The Stellar network simultaneously does all of the above at the same time. When you make a transfer, it finds the best possible rates every time. If you want to receive or send money instead of exchanging money, it can do that by directly connecting individual entities.
You can send, receive or trade any kind of currency through Stellar, whether regular or crypto with anyone else in the world almost immediately and at practically no cost. The name of the cryptocurrency token is Lumens (XLM) while Stellar is the name of the network as a while. This is a cryptocurrency with a difference.
When using the Stellar network, you will be using the ledger and anchors. The ledger is a central ledger of every account on the network and the currencies it holds. This information is needed to make transfers around the network. The anchors are trusted entities on the network that hold currencies being transferred.