Lumen

Lumen (XLM) is the native digital asset of the Stellar network, designed to facilitate fast and low-cost cross-border transactions. Stellar aims to connect banks, payment systems, and people, enabling efficient and affordable transfers of money. Lumen serves several purposes within this ecosystem. It acts as a bridge currency, allowing different currencies to be exchanged seamlessly. This means a user can trade one currency for another without needing a direct match between the two. Additionally, Lumens help to prevent spam attacks on the network by requiring a small amount to be held by users. This encourages genuine transactions and ensures the network operates smoothly. Lumen is designed to be scalable, providing the capability to handle a substantial number of transactions quickly and efficiently. By addressing issues of cost and speed, it aims to enhance financial systems and increase access to financial services for underbanked populations.