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Ripple vs Stellar Differences
Both ripple vs stellar have taken the cryptocurrency sector by storm. There might be some similarities between them as both of the crypto-currencies were co-founded by Jed McCaleb and their functioning and technology appear to be somewhat same. But, ripple or stellar both of them have some differences.
- Ripple was first created with the sole purpose of making international transactions both cheaper and at a faster rate. While ripple started growing, it attracted a lot of big corporations and financial institutions.
- It has become so popular that some corporations are seriously thinking about using ripple for their international transactions. Later on, ripple started concentrating on only big corporations and financial institutions, leaving individual transactions behind.
- Later on, Jed McCaleb started working on stellar. It is a not for profit entity which was created to correct the mistakes and fill the gaps left behind by ripple.
- The Stellar Development Program (SDF) which created stellarly, wanted to help in person to person transaction and its goal was to provide financial inclusion to the impoverished individuals.
- Although stellar had similar functioning of ripple in the beginning, the complex structure made the developers of stellar come up with a different kind of functioning that better suits their product.
- Stellar is very different now from ripple as its whole functioning and the programming has been changed and the current stellar has very little resemblance with that of ripple.
Ripple vs Stellar Infographics
Here we provide you with the top 9 differences between Ripple vs Stellar
Ripple vs Stellar Key Differences
Here are the key differences between ripple or stellar –
- While ripple is a for-profit organization that aims to make use of the opportunity to earn more profits, stellar is a not for profit organization that aims to reach out to more people and helps the needy.
- Ripple is the type of cryptocurrency that attracts large corporations and financial institutions providing them a fast and safe method of the international transaction at a considerably low cost. Stellar is the type of cryptocurrency that attracts person to person transactions and it also aims to reach as many people as possible.
- Ripple uses a closed source software that doesn’t give access to others. But stellar runs on an open source software which is accessible to everyone. This helps people to customize the software as per their requirements and use them. Even though people are able to access stellar software, the important data and transactions are kept with strict security.
- Ripple has attracted many financial institutions and companies to invest and nearly 200 people including some top-level executives from top-notch companies have invested around $100 million dollars. On the other hand, stellar has attracted more entrepreneurs and individuals to invest in and nearly 20 people have invested in it. It is expected that more and more investors would join in for the noble cause.
- Ripple is a profit making company has a centralized type of control where certain things are always done by their will. Stellar is different in this manner as it uses a decentralized type of control and thereby it doesn’t have such restrictions.
- The inflation rate of ripple is deflationary whereas stellar has a inflation of 1% every year.
Ripple vs Stellar Head to Head Differences
Now, Let’s have a look at the head to head differences between the Ripple vs Stellar
|Basis for comparison between Ripple vs Stellar||Ripple||Stellar|
|Type||For-profit organization.||It is a not for profit organization.|
|Mainly Used||For payment facilitation in large corporations and financial institutions.||For low-cost financial transactions from person to person and to uplift the poor.|
|Software||Closed source.||Open source.|
|Type of Control||More of centralized control.||Decentralized control.|
|Total Number of Coins||100 billion.||103 billion.|
|Consensus Used||Proof of Correctness.||Stellar consensus protocol.|
|Invested by||Almost 200 people.||A small team of around 20 people.|
|Inflation||Deflationary.||1% of inflation every year.|
Ripple vs Stellar – Conclusion
Although both ripple or stellar are crypto-currencies, they are not in direct competition with each other. It is because both their target markets are different as well as their functioning.
The idea behind creating these two cryptocurrencies is to serve a larger audience instead of just a niche. While ripple serves the higher-upper class, big businesses, wealthy individuals, stellar takes care of the people from middle & lower class.
Jed McCaleb wanted to create two crypto-currencies that serve the needs of both the markets. As a result, one will help promote the brand equity of the other and both ripple vs stellar would become the top cryptocurrencies in the world.
This has a been a guide to the top differences between Ripple and Stellar. Here we also discuss the Ripple vs Stellar along with infographics, and comparison table. You may also have a look at the following articles –