Stellar vs. Ripple
Stellar (XLM) and Ripple (XRP), two networks aiming to improve the ease of completing transactions for payment providers and financial institutions, are often compared against each other.
In fact, Jed McCaleb, Stellar’s creator, served as the Chief Technology Officer (CTO) of Ripple before leaving the project to create Stellar Lumens.
STELLAR (XLM)
Stellar was created to challenge traditional transactions by allowing its users to send money and assets globally, and was intended to target the unbanked.
To gain a deeper understanding of the similarities and differences between the two, continue to read a detailed side-by-side comparison of Stellar vs Ripple below.
Sự khác biệt giữa Stellar và Ripple
DATE FOUNDED
Stellar
Stellar was founded July 31st, 2014
Ripple
Ripple was founded September 2012
CREATOR
Stellar
Stellar was created by Jed McCaleb.
Ripple
Ban đầu được thành lập với tên gọi OpenCoin, công ty khởi nghiệp đằng sau XRP sau đó đã đổi tên thành Ripple Labs vào năm 2013 trước khi chuyển sang sử dụng Ripple vào cuối năm 2015.
Ripple hiện đóng vai trò là người quản lý chính trong việc cấp vốn và phát triển XRP, đồng thời đóng một vai trò quan trọng trong sự phát triển và nền kinh tế kỹ thuật số của nó.
TICKER
Stellar
XLM
Ripple
XRP
VISION
Stellar
Stellar was created with the aim to change the way currencies and assets were transferred globally and has been described as everything from a payment rail to an exchange.
The Stellar platform incentivizes a distributed network of computers to run a software that enables anyone to send money and assets in ways that have traditionally been the domain of payment providers.
Stellar differs from Ripple in attempts to position itself as a kind of decentralized exchange, with a built-in order book that keeps track of the ownership of Stellar Lumens assets. These assets can then be traded on its platform between users using its XLM cryptocurrency.
Ripple
XRP was created to complement traditional payments by migrating transactions that occur today within financial institutions to a more open infrastructure.
In order for XRP to work, Ripple built the XRP ledger, a software that introduced a new way of operating a blockchain’s transaction and records system.
Similar to Bitcoin, the XRP ledger allows users to send and receive its XRP cryptocurrency using digital signatures.
RA MẮT & PHÁT HÀNH
Stellar
The Stellar Development Foundation (SDF), a non-profit organization supporting Stellar’s growth and development, was tasked with distributing Stellar’s initial 100 billion Stellar Lumen XLM supply over a period of 10 years.
The XLM issued at launch was set to be distributed to users who signed up for a Direct Sign-up Program, to Bitcoin and Ripple holders, to Stellar Partners (such as SatoshiPay and Abra) and to the SDF itself for its operational budget.
However, the SDF came across some roadblocks with the distribution and only managed to distribute 7.375 billion XLM. As a response, the SDF team made changes to its supply curve and burned over 50 billion XLM, reducing the total supply to just above 50 billion XLM.
Ripple
Upon the launch of XRP, Ripple initially distributed 45 billion XRP to users on forums through various giveaways. The remaining XRP is being escrowed by the company to fund its technology development.
However, the distribution of its tokens continue to cause debate due to Ripple being a for-profit company. This has enabled it to be the principal steward and key decision maker in the funding and development of the XRP Ledger, a controversial stance in the distributed world of cryptocurrencies today.
NETWORK DESIGN
Stellar
Stellar copied much of its code from the XRP ledger meaning the two assets share a common code base and design scheme. Stellar has since made several technical changes to differentiate itself from its counterpart.
Central to powering its network is Stellar Core, a software used to maintain its ledger and to validate its transactions. Nodes running the software can be set up to serve as watchers, who can submit transactions, Archivers, who store the activity of the network, and validators, who validate transactions and vote on network upgrades through the Stellar Consensus Protocol.
Ripple
Central to the XRP cryptocurrency is the XRP Ledger, the technology that allows users to send and receive cryptocurrency using public- and private-key cryptography and enables servers to send transactions for consideration by its network.
The XRP Ledger differs from Bitcoin in that it does not use mining or require specialized computing hardware to secure its ledger and validate transactions. Only specific nodes, called unique nodes, can validate transactions on the network.
This design was intended for nodes to quickly validate transactions in an attempt to mirror transactions that occur today between databases controlled by financial institutions.
MONETARY POLICY
Stellar
When Stellar launched, 100 billion XLM were created and the software rules dictated that the supply increase 1% annually until the maximum supply of 105 billion XLM was reached.
When the SDF took steps to regulate the XLM economy and drop the number of available XLM from 105 billion to just over 50 billion, Stellar users also voted to end the programmatic supply increase.
Last, XLM is also used as fuel for transactions on the network, as 0.00001 XLM are deducted as fees whenever a transaction is made, helping prevent bad actors from spamming its network.
Ripple
While the XRP Ledger does not require transaction fees in the way Bitcoin does to reward miners, it does mandate that a small amount of XRP be put up by the sender to be destroyed and deducted from the total supply.
Like Bitcoin, the supply of XRP is limited, meaning that according to the software’s rules there will only ever be 100 billion XRP.
Stellar
Stellar was created with the aim to change the way currencies and assets were transferred globally and has been described as everything from a payment rail to an exchange.
The Stellar platform incentivizes a distributed network of computers to run a software that enables anyone to send money and assets in ways that have traditionally been the domain of payment providers.
Stellar differs from Ripple in attempts to position itself as a kind of decentralized exchange, with a built-in order book that keeps track of the ownership of Stellar Lumens assets. These assets can then be traded on its platform between users using its XLM cryptocurrency.
Ripple
XRP was created to complement traditional payments by migrating transactions that occur today within financial institutions to a more open infrastructure.
In order for XRP to work, Ripple built the XRP ledger, a software that introduced a new way of operating a blockchain’s transaction and records system.
Similar to Bitcoin, the XRP ledger allows users to send and receive its XRP cryptocurrency using digital signatures.
Useful resources
If you are interested in learning more about Stellar and Ripple, please visit Kraken’s What is Stellar XML? and What is Ripple XRP? pages.
Want more in depth information on specific cryptocurrencies and blockchain projects? If so, visit our Learn Center to further your education on this ever-growing space.