Stellar (XLM) and Ripple (XRP) — two projects that are often compared due to their similarities in goals and concept. Both projects are aimed at improving and simplifying international financial transfers. However, they have significant differences in architecture, approach, and use, which make them unique. In this article, we will review both Stellar (XLM) and Ripple (XRP) and compare their characteristics.
Overview of Stellar (XLM)
Stellar is an open platform for money transfers, founded in 2014 by Jed McCaleb and Joyce Kim. Stellar works with the same goals as Ripple — to provide solutions for fast and cheap transactions, but with an emphasis on inclusivity and accessibility for all users, including developing countries.
Goals of Stellar (XLM)
– To improve the global financial system for individuals and businesses by providing cheap and fast transfers.
– The Stellar network is focused on working with traditional financial institutions but is also open to cryptocurrency projects and organizations.
– Stellar uses the Stellar Consensus Protocol (SCP), which is unique and differs from traditional Proof of Work (PoW) and Proof of Stake (PoS) systems. It works on the principle of federated consensus, allowing transactions to be processed faster and cheaper.
Stellar works with large companies such as IBM and has several key financial partners, including TransferTo and KlickEx. Transactions in the Stellar network are very cheap (around 0.00001 XLM) and are confirmed in just a few seconds. This makes Stellar an ideal platform for micropayments.
Unlike Ripple, Stellar also offers the possibility of developing decentralized applications (dApps), which expands its use in the cryptocurrency space.
Which Project to Choose?
Both projects — Stellar and Ripple — are focused on solving problems related to international payments and transactions, but they approach this in different ways.
– Stellar is more focused on accessibility and inclusivity, helping developing countries and small businesses. Its open community and support for different currencies make it an ideal platform for broader use in the cryptocurrency ecosystem.
– Ripple, on the other hand, is more focused on large financial institutions and corporate solutions. If your business or institution operates in the banking sector, Ripple may be a better choice due to its close cooperation with banks and enhanced liquidity.
Conclusion
The golden rule that we apply to all projects and financial activities is — not to choose between projects, but to consider them as complementary. Both projects contribute significantly to the development and modernization of the future of cryptocurrency adoption and integration into everyday life. Therefore, it is important to have both projects in your portfolio.
Unlike XRP, the price of XLM has not yet reached a new ATH (all-time high) and is trading in the range of $0.54–0.55, trying to break through this resistance level. After a successful breakout and retest, the price will likely move rapidly toward new price marks.
