Lumen - XLM is the digital currency of the Stellar network. Stellar is a payment protocol that connects banks, payment operators and individuals. The Stellar platform allows you to instantly transfer money at a low cost, regardless of currency conversion and location, in a way that has traditionally been the domain of payment service providers. The difference is that Stellar allows you to take advantage of these services by encouraging a distributed network of computers to run common software.
XLM acts as both a means of payment and a “fuel” for the operation of the network. A basic online transaction costs 0.00001 XLM, so $ 1 Lumens will cover approximately 400,000 transactions.
Anyone using the service powered by Stellar can transfer anything from traditional currencies to tokens representing new and existing assets. These assets can then be traded between users (across borders) with less friction using their cryptocurrency, Lumens (XLM).
Developers are increasingly trying to make Stellar a market for assets issued on its own protocol, with features that allow users to manage buy and sell orders and set preferred assets when settling trades.