Ripple (XRP) and Stellar (XLM) are both digital assets that are designed for use in the financial industry. Both have similar goals of making it easier and more efficient to transfer money across borders, but they have some key differences.
Ripple has its own digital token, XRP, which is used to facilitate transactions on the XRP Ledger. The XRP token can also be bought and sold on cryptocurrency exchanges. Stellar also has its own digital token, XLM, which is used to facilitate transactions on the Stellar network. The XLM token can also be bought and sold on cryptocurrency exchanges.
One of the main differences between the two is their underlying technology. Ripple is built on a proprietary blockchain called the XRP Ledger, while Stellar is built on the open-source Stellar Consensus Protocol (SCP). This means that Ripple's technology is proprietary and controlled by the company, while Stellar's technology is open-source and controlled by a non-profit organization.
Another difference between the two is the way they handle transactions. Ripple is designed to be used by financial institutions, such as banks, to facilitate cross-border payments. It uses a consensus mechanism called the XRP Ledger Consensus Protocol (XRCP) to validate transactions. Stellar, on the other hand, is designed for use by individuals and smaller institutions, and it uses the SCP to validate transactions.
In terms of scalability, XRP has a higher transaction per second rate than Stellar. Ripple can handle 1500 transactions per second and can scale upwards of 50k plus transactions per second, depending on software/hardware configurations, while Stellar can currently handle around 1000/sec and scale upĀ to around 4000+/sec.
In conclusion, while Ripple and Stellar have similar goals of making cross-border payments easier and more efficient, they have some key differences in terms of their underlying technology, target audience, and transaction-processing mechanisms. Ripple is designed for use by financial institutions, while Stellar is designed for use by individuals and smaller institutions. Additionally, Ripple operates on a proprietary blockchain, while Stellar operates on an open-source blockchain. Ripple's token is XRP, Stellar's token is XLM.
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Written by -- The Dinarian & ChatAPI š