The XLM blockchain platform is establishing itself as an alternative to Ethereum and Ripple, mainly for the characteristics of its smart contracts.
In recent months XLM has climbed the market cap ranking reaching the seventh place, ahead of Litecoin, Cardano, Monero, Tron and others.
It is no coincidence that a giant like IBM has chosen it as a platform for a couple of blockchain-based projects, one dedicated to the development of a stable coin, another aimed at creating an “ecological token“.
The open source project was started back in 2014 by Joyce Kim and Jed McCaleb, famous for creating the P2P software for eDonkey file-sharing, for co-founding Ripple and for creating the Mt. Gox exchange, and is supported by a non-profit organization, the Stellar Development Foundation.
On the one hand, Stellar is meant as an alternative to Ethereum, while on the other, it partly competes with Ripple.
It is a true decentralized platform like Ethereum, with lots of smart contracts, dApps and ICOs, but at the same time, it is also a financial infrastructure that various non-profit organisations seem to like.
Recently, while the price of ETH has fallen considerably, the price of XLM managed to mitigate the fall suggesting to many that the two projects are becoming competitors, and Stellar is gaining momentum against Ethereum.
The winning feature of the project could be the continuous release of new developments. It is no coincidence that Coinbase recently announced that it is one of the few cryptocurrencies that it is considering adding to its exchange.
There are already many blockchain-based projects using the Stellar platform.
Often the reason why they choose it is due to the peculiar characteristics of its smart contracts: they are in fact multi-signature, they use batching to include more operations in a single transaction, they have atomicity, which allows the blocking of operations in case of failure, they use sequential numbers in the manipulation of transactions and have timed functions to limit the period during which a transaction is considered valid.
For example, David Gobaud, co-founder and CEO of Mobius, while explaining why they chose Stellar instead of Ethereum, said that the ETH platform is too slow, expensive and insecure compared to that of XLM.
Furthermore, XLM appears to be a more stable cryptocurrency compared to ETH, which makes it preferable to traditional operators (such as IBM) which are not used to working with highly volatile currencies.