The cryptocurrencies market grows every day, and new cryptocurrencies are emerging on a daily basis. The ever-increasing supply of different coins turns into a highly diversified market. Each coin is unique with its specifics and can be used in other industries, but there are also coins that do not have too many purposes in the project plan for which they are intended. Some have more functions, some less, and some are so similar to each other that almost no one can see the difference between them.
That is why the subject of this text is the comparison of Ripple and Stellar coins, which are currently both settled in the top 10 cryptocurrencies list according to market cap. Looking at Stellar (XLM) and Ripple (XRP), there are significant similarities between these two cryptocurrencies, both in their basic features and in the areas where they are used.
But the most interesting thing is that both were made by Jed McCaleb, an American programmer, and entrepreneur who is in the 40th place of the planet’s richest people according to Forbes. But his wealth is pretty relative and unstable term, because most of his wealth is in XRP and XLM, and if he would try to convert his “wealth” into US dollars or any other currency in the world, this would cause such market saturation and falling prices, that his “fortune” would fall off several times.
Today we will explain the differences between these two cryptocurrencies made by the same man.
The differences between Ripple and Stellar
The first difference should be sought in the purpose of each of these cryptocurrencies. Stellar seeks to work with individuals to provide them with financial services at a low price in order to provide small businesses with cheap financing and a chance for equal struggle in a more dynamic and uncertain market.
Ripple cooperates with banks and banking organizations, connects banking entities using platform and payroll provider named RippleNet.
Similar to the above goals, Stellar is a non-profit organization, while Ripple is a profitable organization whose goal is to find its profit opportunity through work on increasing efficiency solutions in the financial system.
Protocols Ripple and Stellar
At the very beginning both Stellar and Ripple worked on the same protocol, but soon they set off on separate roads.
Stellar currently uses the Stellar Consensus Protocol (SCP), which can be considered a major breakthrough as it offers complete decentralization, flexibility and security. The important difference between him and Ripple is decentralization. Stellar is decentralized, while Ripple is not. On the other hand, Ripple uses a consensus algorithm (RPCA) based on the Proof-of-Correctness mechanism.
Likewise, there is a difference when it comes to protocol speeds. Stellar runs at 1000 tx/s, unlike Ripple whose speed is significantly slower and runs at different speeds depending on the system load.
Market differences Ripple and Stellar
Probably the most important difference for most people is the market price of these two cryptocurrencies and the predictions of movement and the price in the coming period.
Ripple is currently the third cryptocurrency by market capitalization, while Stellar is the eight. The price of an XRP is currently $ 0.69, and the highest price was in January this year at a cost of $ 3.32 per XRP.
Stellar also peaked in January 2018 when its price was 0.85 US dollars per XLM, while it currently stands at $ 0.32. By comparing it, it is obvious that Ripple lost a lot more value (maximum value = 5x present value), while Stellar’s maximum value was 2.5 x the present value.
The Stellar is currently considered a currency that promises much more than Ripple, which is why its price dropped far less than Ripple’s price.