Cryptocurrency developers Ripple (XRP) have very ambitious plans and are not shy about stating that they will soon become the number one cryptocurrency. But they plan to begin their domination with widespread use in the financial sector, hoping that banks around the world will use Ripple for domestic and cross-border payments.
The crypto community did not support the idea of a private company issuing its cryptocurrency and selling it to banks, and therefore the Stellar (XLM) project appeared in 2014. It was a fork of Ripple, with all its capabilities, but Stellar’s goal was to fight poverty around the world by creating an affordable and cheap international payment system.
Will Ripple and Stellar be able to develop in parallel, or will it not be enough for them to have one world for two? It’s time to find out.
Ripple and Stellar: Technology
Cryptocurrency Ripple, or XRP, does not need mining, and the operation of its network is supported by a limited number of validators. These validators are Ripple Labs and it’s approved other nodes that belong to crypto exchanges, banks and other financial partners.
The lack of mining and a limited number of validators allow the Ripple network to process over 1,500 transactions per second, almost free of charge. Also, the Ripple cryptocurrency is a universal exchange tool with which you can transfer any assets, such as fiat money, stocks, and precious metals. That is, everything that a digital payment document can be issued for. Furthermore, a lot of people tend to buy ripple with PayPal, which seems to be their favourite payment method.
Stellar technology actually repeats one-to-one the capabilities of the Ripple network. Initially, they worked on the same protocol, but in 2015 they switched to using their own code, while retaining all the functional features of Ripple.
The main difference between Stellar is that anyone can run their own node and keep the network running. Also, this cryptocurrency has a decentralized exchange and the ability to conduct ICOs , but all this can be done on the Ripple network, they just do not care about such developments.
So whose technology is better, decentralized from Stellar or original and more secure due to careful selection of validators from Ripple? Let time answer this question, and we will give them a draw.
Ripple and Stellar: Applications
Ripple and Stellar are the favorite assets of crypto traders. They are cheap, traded on a large number of crypto exchanges, and can go against the market if there is sufficient incentive. No matter how you look, both assets are just perfect for market speculation, but note that Ripple has 4 times more daily trading volume.
As for other applications, Stellar has partnered with IBM to offer their network for bank transfers and this project has a good chance of gaining a foothold in the market. But they did it much later than the RippleNet network appeared, which has already managed to launch its tentacles in many banks around the world, and besides, some companies even decided to use XRP cryptocurrency.
Stellar is not doing well as a payment system for ordinary people. This cryptocurrency is not yet in demand for settlements, and therefore even Ripple loses the criterion, which in terms of real application has succeeded much more.
Ripple and Stellar: There Should be Only One Left! Will Stellar Replace Ripple?
So, in the comparison between Ripple and Stellar, the victory with the minimum advantage goes to Ripple. But it’s important to understand that the crypto community can reverse this outcome completely. Because banks, despite all the efforts of the developers of these cryptocurrencies, are extremely reluctant to switch to the use of new cryptocurrency assets. In addition, both projects can simply offer a faster and cheaper payment network, without the need to use the cryptocurrency itself for settlements.