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Ripple and Stellar are some of the biggest cryptocurrency projects in the world. While Ripple is the third largest crypto with a market capitalization of $11.7 billion, Stellar comes at the 6th position with a market capitalization of $3.9 billion. Ripple has established itself as a company and a platform that focuses on providing financial solutions. The company has over the years entered into strategic partnerships, and by so doing, it has cemented its position in the market as the go-to platform for cross-border remittances and other related financial solutions.

However, Stellar has gradually come up as a worthy competitor to Ripple. Both projects have many similarities, but they also have differences as well. Stay with as I explore both of these cryptocurrency projects. And perhaps at the end, you will be in a position to decide which one between the two is positioned for greater success.

Ripple (XRP)

As mentioned above, Ripple is a digital asset that has been developed for enterprise use. It has developed solutions like the xCurrent and xRapid to offer banks and other financial institutions reliable, real-time and secure cross-border payments. It is said to be 1,000X faster than Bitcoin (BTC) in terms of the time taken to confirm transactions. This means that volatility risk is much lower when sending funds with XRP in comparison to other cryptocurrencies.

As a payment provider, it offers enterprises a way to enter new markets, while at the same time, offering them lower foreign exchange costs. XRP payments take 4 seconds to settle and the network handles 1,500 transactions per second (TPS), which the company says it can be scaled to match that of Visa and MasterCard.

Stellar (XLM)
Stellar is a younger project to Ripple by a couple of years. It was launched in 2014 as a cross-border payments provider. While Ripple works on the proof of Correctness Protocol Stellar uses its very own Stellar Consensus Protocol.

The platform focuses on providing quick, reliable and low-cost transactions. Stellar platform exists to connect banks, payment systems and people. In fact, Stellar’s website says that transaction on its network takes at least 2 – 5 seconds to settle. The platform facilitates low-cost payments among different currencies. It is important to note that Stellar.org is a nonprofit with the vision to bring financial inclusivity in the world. While doing so, it aims at improving the individual potential to fight poverty. In addition to that, 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 nonprofit organization that strives to serve the unbanked in the society and especially the developing countries. Stellar offers its users a decentralized exchange for digital assets in addition to providing a platform where tokens can launch through ICOs; both of the services are not available on Ripple.

Both Stellar and Ripple have notable partnerships, for instance, Ripple boasts of partnering with American Express, Deloitte, Western Union, and MoneyGram among others. Stellar has IBM as a partner, besides, it recently partnered with TransferTo; a cross-border money transfer network among other strategic partnerships.

 

 


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