Currently, there are more than 5,000 cryptocurrencies registered on the coinmarketcap website, among which are prominent currencies that have been able to occupy the first ranks, whether thanks to the project they are carrying, their seniority or other factors.

There are two currencies, one of which ranks third in terms of total market capitalization on coinmarketcap and the other ranks 14th on the same site, namely Ripple and Stellar.

Ripple and Stellar share the same co-founder, Jaid Makaleb, but the two projects are different from each other. In this article, we will discuss the similarities and differences between the two projects:

Similarities:

• Both projects contain blockchains with private nodes.
• Both projects do not support the mining process.
• Both work using distributed ledger technology, or DLT.
• Facilitates instant transactions, especially international transfers and payments.

The differences:

• Ripple uses the validation algorithm while Stellar uses the consensus protocol.
• The Ripple blockchain is more centralized than the stellar blockchain.
• Ripple is profit oriented while Stellar is a non-profit organization.
• The main applications of the Ripple protocol include banks, on the contrary, “stellar” has the greatest use in individual and small business transactions.

About Ripple:

Ripple was founded by Chris Larsen and Jed McCaleb in 2012, with a validation protocol that is applied every few seconds from all nodes, ensuring accuracy and protocol agreement.

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DLT has a high applicability for use in banks and top financial institutions, as it enables users to carry out cross-border transactions faster, smoothly and at very low cost.

Ripple’s functions are to eliminate the need for intermediaries when executing cross-border transactions, as many financial institutions and banks have used their services due to liquidity.

However, the use of Ripple is not limited to institutional use alone, as anyone can benefit from its payment protocol.

About the stellar:

As mentioned, McCaleb is the founder of Stellar as well and she works with the goal of helping companies process payments with digital assets, which is the result of Ripple’s hard fork in 2014.

An open-source, distributed blockchain enables the transfer of assets via different methods and not only money but also values. Integration into the Stellar blockchain protocol will immediately expose users to an open global financial network where all participants have the same access and economic participation.

According to its official website On the Internet, Stellar seeks to combat poverty while also building individual skills. It aims to do this by connecting people to low-cost financial services, hence the reason why it is a non-profit organization. Considering this, the characteristics of the Stellar project are:

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• It uses 5% of the initial XLM units that have been segregated as operational costs.
• Tax-deductible donations are accepted from the public.
• Stellar facilitates cheaper and smoother currency exchange as long as it has enough users on its platform.

Finally:

Ripple, unlike Stellar, is a profit-oriented protocol that currently has approximately 75 banks on its network, and is based on a closed system, so the public cannot view or influence changes.

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Ripple has raised a total of $93.6 million and has a team of more than 200 employees, on the other hand, the Stellar Corporation has raised $3 million and has around 20 Tier 1 employees.

At the time of writing this article, XRP is trading at $0.19, while XLM is trading at $0.05.

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