Ripple and Stellar are some of the world's largest cryptocurrency projects. While Ripple is the third largest crypt with a market capitalization of $ 11.7 billion, Stellar arrives at position 6 with a market capitalization of $ 3.9 billion. Ripple has established itself as a company and a platform that focuses on providing financial solutions. Over the years the company has launched strategic partnerships and, in doing so, has consolidated its position on the market as a reference platform for cross-border remittances and other related financial solutions.
However, Stellar has gradually arrived as a worthy rival to Ripple. Both projects have many similarities, but they also have differences. Stay with me as I explore both these cryptocurrency projects. And perhaps in the end, you'll be able to decide which of the two is positioned for greater success.
As mentioned above, Ripple is a digital asset that has been developed for business use. It has developed solutions such as xCurrent and xRapid to provide banks and other financial institutions with reliable, real-time and secure cross-border payments. It is said to be 1,000 times faster than Bitcoin (BTC) in terms of time taken to confirm transactions. This means that the risk of volatility is much lower when sending funds with XRP compared to other cryptocurrencies.
As a payment service provider, it offers companies a way to enter new markets while offering lower exchange costs. XRP payments take 4 seconds to settle and the network handles 1,500 transactions per second (TPS), which the company can re-size to match that of Visa and MasterCard.
Stellar is a younger project in Ripple for a couple of years. It was launched in 2014 as a provider of cross-border payments. While Ripple works on demonstrating the correctness protocol, Stellar uses its own Stellar Consensus Protocol.
The platform focuses on providing fast, reliable and low-cost transactions. There is a stellar platform to connect banks, payment systems and people. In fact, the Stellar website states that the transaction on its network requires at least 2 – 5 seconds to settle down. The platform facilitates low-cost payments between different currencies. It is important to note that Stellar.org is a non-profit organization with the vision to bring financial inclusion into the world. While it does so, it aims to improve individual potential to combat poverty. In addition, developers can use the network to develop decentralized applications and other software.
How different are these projects?
It is clear that both projects are very similar. However, this is only true on paper. Ripple is a company that exists to make profit but Stellar.org, on the other hand, is a non-profit organization that strives to serve the unbanked in society and in particular in the developing countries. development. Stellar offers its users a decentralized exchange of digital assets as well as providing a platform where tokens can be launched through ICOs; both services are not available on Ripple.
Both Stellar and Ripple have important collaborations, for example, Ripple boasts of collaborating with American Express, Deloitte, Western Union and MoneyGram, among others. Stellar has IBM as a partner, moreover, recently collaborated with TransferTo; a cross-border money transfer network among other strategic partnerships.