XLM

XLM is the native cryptocurrency of the Stellar blockchain, which is a decentralized, open-source network designed to facilitate fast, low-cost cross-border payments. The Stellar network was launched in 2014 by Jed McCaleb, one of the co-founders of Ripple, with the goal of making financial systems more accessible and efficient, especially in underserved and unbanked regions.

The Stellar blockchain allows users to create, send, and trade digital representations of all forms of money—dollars, euros, bitcoin, and more. It acts as a global payments platform, where any currency can move seamlessly across borders using the network’s built-in decentralized exchange. XLM, or Lumens, are used as a bridge currency and to pay transaction fees, which helps prevent spam on the network.

Stellar is designed to settle transactions in just a few seconds, with very low fees—often a fraction of a cent. Its consensus mechanism is called the Stellar Consensus Protocol (SCP), which does not rely on mining. Instead, it uses a network of trusted validators that reach agreement quickly and securely. This makes Stellar faster and more energy-efficient than traditional blockchains like Bitcoin or Ethereum.

A key use case for Stellar is connecting financial institutions, payment providers, and individuals across borders. For example, it enables quick currency conversion between local currencies and digital assets without needing a central intermediary. Developers can also build tokens, smart contracts, and apps on top of the Stellar network.

XLM has a fixed supply of 50 billion tokens, with a large portion distributed to the public, nonprofits, and ecosystem partners to encourage growth and accessibility. The Stellar Development Foundation, a nonprofit organization, oversees the growth and development of the network and helps promote adoption in global finance.

Overall, XLM serves as the core utility token of a fast, efficient, and globally-focused blockchain network designed to make financial systems more open and interoperable.