Ripple vs Stellar

Difference Between Ripple and Stellar

Both Ripple and stellar are the cryptocurrency where Ripple was established in the year 2012 for-profit organization with the main motive of facilitating the payments in the financial institutions and large corporation whereas Stellar was established in the year 2014 for non for-profit organization with the main motive of facilitating the financial transactions at low cost from a person to another person.

Both Ripple and 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 the same. But, 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 that was created to correct the mistakes and fill the gaps left behind by ripple.
  • The Stellar Development Program (SDF) which created stellar, wanted to help in person to person transactions and its goal was to provide financial inclusion to 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

Let’s see the top 9 differences between ripple vs stellar.


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Key Differences

  • 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 closed source software that doesn’t give access to others. But stellar runs on open-source software that 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, important data and transactions are kept with strict security.
  • Ripple has attracted many financial institutionsFinancial InstitutionsFinancial institutions refer to those organizations which provide business services and products related to financial or monetary transactions to their clients. Some of these are banks, NBFCs, investment companies, brokerage firms, insurance companies and trust corporations. read more 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 that 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 inflation of 1% every year.

Ripple vs Stellar Comparative Table

Basis for comparisonRippleStellar
TypeFor-profit organization.It is a Not For-profit organization.
Mainly UsedFor payment facilitation in large corporations and financial institutions.For low-cost financial transactions from person to person and to uplift the poor.
SoftwareClosed source.Open-source.
Type of ControlMore centralized control.Decentralized control.
Total Number of Coins100 billion.103 billion.
Consensus UsedProof of Correctness.Stellar consensus protocol.
Invested byAlmost 200 people.A small team of around 20 people.
InflationDeflationary.1% of inflation every year.


Although both are cryptocurrencies, they are not in direct competition with each other. It is because 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 the 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.

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