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Formatted 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 sha
by semi-extrinsic 9y ago
Formatted 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