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I recently started looking into Lumens and can't figure out the value proposition of the token. AFAIK the stellar network purports to be a place where you can
by mparr4 9y ago
I recently started looking into Lumens and can't figure out the value proposition of the token.
AFAIK the stellar network purports to be a place where you can do peer to peer exchanges of currencies, with Lumens being one of them, but on the stellar website they say things like:
> Why does the Stellar network need a native asset?
> The Stellar network offers all of the innovative features of a shared public ledger on a distributed database—often referred to as blockchain technology. The Stellar network’s built-in currency, the lumen, serves two purposes:
>
> First, lumens play a small anti-spam role.
> Each transaction has a minor fee—0.00001 lumens—associated with it. This fee prevents users with malicious intentions from flooding the network (otherwise known as a DoS attack). Lumens work as a security token, mitigating DoS attacks that attempt to generate large numbers of transactions or consume large amounts of space in the ledger.
>
> Similarly, the Stellar network requires all accounts to hold a minimum balance of 20 lumens. This requirement ensures that accounts are authentic, which helps the network maintain a seamless flow of transactions.
>
> Second, lumens may facilitate multi-currency transactions.
>
> Lumens sometimes facilitate trades between pairs of currencies between which there is not a large direct market, acting as a bridge. This function is possible when there is a liquid market between the lumen and each currency involved.
and
> You may choose to purchase lumens as a supporter of the Stellar.org mission.
What is the bull case for this cryptocurrency?
- semi-extrinsic 9y agoFormatted so it's readable on mobile: > Why does the Stellar network need a native asset? > The Stellar network offers all of the innovative features of a shared public ledger on a distributed database—often referred to as blockchain technology. The Stellar network’s built-in currency, the lumen, serves two purposes: > First, lumens play a small anti-spam role. > Each transaction has a minor fee—0.00001 lumens—associated with it. This fee prevents users with malicious intentions from flooding the network (otherwise known as a DoS attack). Lumens work as a security token, mitigating DoS attacks that attempt to generate large numbers of transactions or consume large amounts of space in the ledger. > Similarly, the Stellar network requires all accounts to hold a minimum balance of 20 lumens. This requirement ensures that accounts are authentic, which helps the network maintain a seamless flow of transactions. > Second, lumens may facilitate multi-currency transactions. > Lumens sometimes facilitate trades between pairs of currencies between which there is not a large direct market, acting as a bridge. This function is possible when there is a liquid market between the lumen and each currency involved. > You may choose to purchase lumens as a supporter of the Stellar.org mission.
- mparr4 9y agoThanks. I had thought there was some way to format quotes, but after looking at the HN formatting doc [1] I see I was mistaken and I used the styling intended for code formatting. [1] - https://news.ycombinator.com/formatdoc https://news.ycombinator.com/formatdoc
- tim333 9y agoThere's a blog entry from them with a few points https://www.stellar.org/blog/Q1-2018-stellar-and-state-of-crypto/ https://www.stellar.org/blog/Q1-2018-stellar-and-state-of-cr... I think: Transaction charges < 0.01 US cents Transaction time < 10 sec Solid and reliable unlike IOTA Good developer ecosystem Good platform for ICOs "Stellar supports over 1,000 transactions per second compared to Ethereum’s 7 token transaction per second."
- koheripbal 9y agoIf it supports 1000tps on a blockchain, then there must be some centralization nodes, in which case, it is just another Dash equivalent. Centralization defeats the purpose of crypto in my opinion.
- tim333 9y agoAs far as I can tell it's not centralized. It runs faster than bitcoin or ethereum because they do not have proof of work and don't spend time doing hashes. Instead every 4 second or so all the servers put out their version of the new block and the 'consensus' is chosen. I think - I'm new to this.
- amalag 9y agoIt is the same as the Ripple network and XRP. XRP or lumens are the native currency of the network. Every other asset traded is an IOU. You can represent any asset or balance as an IOU. Your bank account is USD/Bank-of-america for example. So the idea behind Stellar and Ripple is that you can represent and trade IOU's. But the intermediate without an IOU is the native currency of the network.