What is XLM coin? How does XLM coin work?

XLM Coin: The Foundation of Stellar Lumens

XLM Coin is the native cryptocurrency of the Stellar blockchain and is designed to facilitate cross-border payments and asset transfers. Secure, fast, and low-cost transactions are achieved through distributed ledger technology (DLT).

How XLM coins work

XLM coins play a vital role in the Stellar network:

• Transaction medium: XLM coins are used to pay transaction fees , ensuring network security and efficiency.
• Asset anchoring: XLM coins can be anchored to other assets, such as fiat currencies or commodities, thereby creating stablecoins that provide price stability in volatile markets.
• Consensus mechanism: XLM coin holders participate in Stellar’s ​​consensus mechanism by voting for trustworthy validators to verify transactions.

Advantages of XLM Coin

It becomes ideal for fast payments and asset transfers.

Low transaction fees: Transaction fees are extremely low, often less than a penny, making cross-border payments more cost-effective.
• Global Coverage: The Stellar network operates globally, allowing users to send and receive funds anywhere in the world.
• Security: Distributed ledger technology ensures the security of transactions, making Stellar a reliable and tamper-proof payment system.
• Uses of XLM Coin

XLM Coin can be used for a wide range of purposes, including:

Cross-border payments: Send and receive money across borders.

Asset transfer: XLM coins can be anchored to other assets, such as fiat currencies or commodities, thereby facilitating seamless transfers of assets.
• Decentralized Finance (DeFi): XLM Coin can be used to build DeFi applications such as stablecoins, lending protocols, and decentralized exchanges.
• Supply Chain Management: XLM Coin can streamline supply chain processes, provide traceability and transparency.
• As the Stellar blockchain continues to develop, the XLM coin is expected to continue to play an important role in providing secure, fast and low-cost solutions for global payments and asset transfers.

The above is the detailed content of What is XLM coin? How does XLM coin work?. For more information, please follow other related articles on the PHP Chinese website!