If I am not mistaken, the same person who founded Ripple (XRP) established Stella (XLM) – Jed McCaleb, founder of Edonkey. Not that alone, they both are similar in the sense that they were created to perform somewhat the same technical functionality. Many have even mistaken the existence of Stellar as a hard fork of Ripple, whereas, both were developed from different codes.
As much as both have numerous and countless number of similarities, there are also thin lines between both altcoins, setting them apart as different entities in the crypto space.
To begin, both, on their website tagged themselves with attributes which set disparity between them. While Stellar XLM, on its website dubbed itself as a Cryptocurrency that “connects people to low-cost financial services to fight poverty and develop individual potential,” Ripple on its own said it is a Cryptocurrency that plans to “connect banks, payment providers, digital asset exchanges and corporates via RippleNet to provide one frictionless experience to send money globally.”
Stellar is an open-source non-profit blockchain technology that aims at creating remittance services for the unbanked, whereas, Ripple XRP differs in this realm. It represents a technology which is not open-sources but profit focused, created to pave remittance corridor for big financial institutions in the finance industry.
While stellar makes use of Stellar Consensus Protocol (SCP), a construction of the Federated Byzantine Agreement (FBA) algorithm, Ripple utilizes an approach called Ripple Protocol consensus algorithm (RPCA), a proof of correctness (PoC) mechanism. The speed of FBA is rated to be up to 1000 tx/s, whereas RPCA speed is around 1500 tx/s. The RPCA, which is a PoC algorithm is “applied every few seconds by all nodes, in order to maintain the correctness and agreement of the network”, while SCP “provides a way to reach consensus without relying on a closed system to accurately record financial transactions.”
Partnership And Collaboration
Albeit both sought to ease transaction for financial institutions, they have different targeted clients.
At present, Stellar XLM development foundation SDF already set up live payments from Europe to the Philippines, and they are making necessary efforts to enter into areas like Africa and GCC. But Ripple tools are being used in almost all places in the world. It has flooded Europe, middle east, Asia and more, with the principal intention of edging deeper into Asia with patency in China (the Crypto hostile region), and partnering with more than half of the world banks in the next five years.
While the major partner of XLM remains IBM with others being Deloitte, Stripe, Keybasea and more, as it aims to enhance cross-border transitions for the unbanked, Ripple is all over the place partnering with various banks in places, Europe, Middle East with Saudi Arabian Monetary Authority (SAMA), and UAE among others banks and places around the world. Added to that, Ripple has got the loyalty of remittance companies like MoneyGram, Western Union, Lia Lia and more.
In the market today according to Coinranking, Ripple XRP is ranked 3rd, priced $0.743 with a market cap of over 29 billion dollars, a 7.66% added value in the last 24hrs. On the other side, Stellar sits at position 8th with a value price of $0.376, over 6 billion dollars market cap and a 9.55% value rise in the last 24 hrs.
Even though Stellar was created to fill the void which Ripple has, because the former was created by founder of the later making him know the ins and outs of Ripple. Stellar XLM still falls behind Ripple XRP in the market of today, and only time can tell what will happen to the two Cryptocurrencies.