July 25, 2019, | AtoZ Markets – The world of cryptocurrency is interesting. It has many great projects. Cryptocurrencies are growing over time and we now have way more than 1000 cryptocurrencies around the world. If you are into the world of cryptos or at least know its most important features, you are likely to know that some crypto projects are similar to each other.
With that being said, we are standing in front of an intriguingly interesting crypto coin, about which many hear and know already, but still, wish to understand more about its characteristics.
In response to emails, I got from AtoZ Markets’ readers, asking me to gather the cryptos Ripple and Stellar in one article, in what sounds like a comparison between the two, I have come up with this piece, in hopes it satisfies their will for knowing more.
Ripple and Stellar – foundation and development
Two cryptographic projects significantly attract more and more interest in the crypto sphere today: the Ripple and the Stellar, both of which have similar characteristics and techniques, but for different purposes. Therefore, it is important to contrast these two projects and find out the differences between them.
Ripple is a crypto project that was created in 2012 by US developers Jed McCaleb and David Schwarz. The project contains its own cryptocurrency called XRP, which is the third-highest market value among the cryptocurrencies. The purpose of the Ripple project is to enable banks to transfer funds from around the world, in a matter of seconds, without additional costs and third parties. The founders of Ripple decided to develop it because the current banking system is very slow and expensive. Despite the fact that XRP protocol targets banks, it can be used by anyone who wants to send and receive money from a wallet to wallet.
The Stellar was created in 2014 by US developer Jed McCaleb, who was also a founder of Ripple. Then, McCaleb decided to leave Ripple and develop Stellar. The project has its own cryptocurrency called XLM Lumen similar to the purpose Stellar aims at.
The project adopts a technology that allows sending and receiving transactions quickly, in a few seconds without additional costs. XLM Lumen has become one of the top 10 cryptocurrencies worldwide. Banks can also use Stellar, but Stellar’s goal is to enable people to transfer money around the world.
Where is the similarity between Ripple XRP and Stellar XLM?
Ripple and Stiller are similar, so people find it difficult to distinguish. Furthermore, the Ripple and Stellar are not mined, such as Bitcoin. Ripple’s and Stellar’s developers run their own nodes between servers. Both use distributed ledgers to verify transactions. This allows fast transactions in just a few seconds.
However, Ripple and Stellar have their differences. Jed McCaleb left Ripple to develop Steller to help people in poor countries who do not have access to banking services. For this reason, Jed McCaleb has donated free Lumens to people who need them. This is the first difference between Ripple and Steller. Ripple aims to target the cross-border payment sector by providing them with their own technology.
There is another difference in the way the contract reaches an agreement. Ripple uses its own protocol called Proof-of-Correctness, and Steller uses its own protocol called the Stellar Consensus Protocol.
Both Ripple and Stellar have strong teams, which is the key to a successful project. This makes them successful in their field and this success expected to continue to grow in the future.
Ripple has reported recently its overall sales’ rate, registering an increase of 48%, along with an increase in the overall institutional buys.