What they share and how they differ


Stellar Lumens (XLM) and Ripple & # 39; s (XRP) are two digital resources that share a common background because both were created by the same person: Jed McCaleb. This leads to some obvious similarities.

However, the two cryptocurrencies also have fundamental differences that the public should know. Until 2013, the American programmer McCaleb was a service member and CTO of the Ripple Company. In 2014, he founded Stellar together with Joyce Kim, to facilitate an easy and economical exchange of digital resources.

The Networks at a glance


The Stellar Network is an open-source software that operates under the Apache license. Users can integrate with the free-to-use network through the APIs available on their website. Ideally, the Stellar network is faster, taking between 2 and 5 seconds to seal a transaction. It operates on a consensus mechanism, which solves problems by reaching a consensus on the network. It is important to note that Stellar targets individuals as a user base.


The Ripple Network addresses the financial industries as a user base. The network aims to involve regulators, central banks and treasuries from different countries around the world. Ripple Network is more centralized than Stellar.

Similarities with the note

For starters, the XRP and XLM coins work similarly based on their payment processing mechanism and the native resources involved. However, each cryptocurrency has its distinct properties that separate one from the other. The XRP focuses on the global transfer of money based on the blockchain, which makes it more similar to Western Union, Moneygram and others that transfer the fiat currency internationally. Both cryptocurrencies share a similar goal of linking the global banking sector to make it more efficient.

Many people believe that because of the shared background, Stellar XLM was a fork of XRP of Ripple and therefore functions as in all ways. This is misleading, since every cryptocurrency works on a distinct code. While coming from Ripple, Stellar developed its own code after its launch, which separates it from XRP. Both digital resources have conveniently carved out their niches in the money transfer business, with Ripple facilitating the transfer of legal money between financial institutions. Stellar, on the other hand, works as a means of transferring digital resources between individual users.

Operational differences to note

Ripple was designed as a for-profit network that conducts currency transfer. The XRP digital currency is a reserve of value that users can use to facilitate payments. It is the third largest cryptocurrency in terms of market capitalization, a position it has maintained for a while.

Ripple focuses on connecting banks, businesses, exchanges and other payment platforms through its RippleNet network. The network currently has more than 100 banks under its belt. Some of the institutions already in the sheepfold include Bank of America.

Stellar, on the other hand, while providing payment services, works under the Stellar Development Foundation, a non-profit organization. Stellar Lumen (XLM) has a market capitalization of over $ 4.2 billion, becoming the sixth largest cryptocurrency.

While Ripple supports an ambitious case, Stellar embraces a disinterested move with the goal of empowering users in underdeveloped countries. It is aimed at unbanked communities that can not access money transfer services. This, in turn, improves financial inclusion and ultimately helps to fight poverty.

Stellar currently works with partners in the Philippines and Europe in an effort to support his robust goals. The foundation plans to extend its services to the African continent in the near future. The open source code of the network is open to anyone who can modify it or distribute it.

In addition, the corporate culture of both companies is different. The Ripple community employs about 200 people while Stellar is conservative and works with around 20 or 30 professionals. While Ripple's staff is concerned about marketing, Stellar uses third-party developers. These operational differences considerably separate the two cryptocurrencies.

Technical differences

In addition to the operational differences, both XLM and XRP also present technical differences. For example, Ripple uses consensus on demonstrating fairness with an independent server network that validates transactions. On the other hand, Stellar, equally a non-tiny coin, is more decentralized than Ripple.

Ripple Stellar
Scalability Highly Scalable Highly Scalable
Transaction Cost Very Low Very Low
Transaction Speed ​​ Very fast [19659024] Very fast
Use case Financial institutions Community / individuals
Philanthropy Serving shareholders End global poverty
Type of entity Based on Profit Nonprofit
Company Vision Centralized Control Distributed Control

With the culmination of operational, technical and protocol, the two platforms work for the adoption of technology and blockchain innovation. Both Stellar XLM and Ripple's XRP aim to solve real-life problems and contribute to the cryptocurrency community.

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