Stellar vs Ripple

Stellar vs Ripple

Table of Contents

Ripple and Stellar have gained a lot of traction among crypto investors since their inception.

As many crypto enthusiasts compare both networks due to many of their similarities; in fact, they both have different entities, principles, and philosophies.

However, both networks aim to improve the efficiency of completing transactions for financial institutions and payment providers.

That’s not all! Both these coins have a lot of differences and similarities. So, to get a precise knowledge of these networks, here are key differences and detailed comparisons between Stellar and Ripple.

So, let’s end this Stellar vs Ripple debate.

What Is Stellar (XLM)?

Stellar is a decentralized, open-source payment network that allows cost-effective, quick transfers and cross-border payments using blockchain technology.

On the other hand, Lumens coins are the native tokens of the network. The Stellar Lumens trades under the XLM ticker symbol on various crypto exchanges.

The coin has a maximum supply of 50 billion tokens, with over 22.5 billion in circulation right now.

You will be surprised to know that both Stellar and Ripple were created by the same person – Jed McCaleb.

However, Stellar is operated by McCaleb’s non-profit organization – Stellar development foundation.

Now that you know about Stellar let’s move forward to the short overview of Ripple.

What Is Ripple (XRP)?

Ripple is an international payments network developed by Jed McCaleb and Chris Larsen (Ripple Labs) in 2012.

The network uses the XRP token, which has 3rd largest market capitalization. The ripple network allows making fast transfers with minimum transaction fees.

Additionally, the network uses distributed ledger technology that doesn’t require third-party to make payments.

In addition to the global financial system, Ripple also provides high liquidity, which is great for financial institutions such as banks.

Stellar vs Ripple: Key Differences:

As we came across the short introduction, you might have understood both these blockchain networks well. So, here are some key differences between Stellar vs Ripple.


Ripple was launched in 2012 by the founder Jed McCaleb and Chris Larsen. In 2014, Jed McCaleb created the Stellar network.

Initially, Stellar was created to address the limits of the previously developed network Ripple, but it subsequently evolved into a currency in its own right.

Target Market:

As both Stellar and Ripple allow for fast and cost-effective payment transfers, their targeted market is what makes them different.

And this is probably the most significant difference that simplifies the Stellar vs Ripple debate. The latter was developed keeping large financial institutions in mind.

The network makes it easy for people to make cross-border payments quickly. However, the network charges high transactional and exchange rate fees.

Conversely, Stellar Lumens focus on less-developed countries, mainly on the current financial systems.

Currently, millions of people are away from the reach of any banking system, so Stellar targets those people and allow them to use banking services.

Consensus Mechanism:

It is a technology via which blockchain validates transactions without any need for a third party.

For instance, Stellar uses the Stellar Consensus Protocol (SCP).

Meanwhile, the Ripple network uses the Ripple Protocol Consensus Algorithm (RPCA).

Token Distribution:

Ripple’s native and utility token is XRP. However, there has recently been a lot of buzz around the security of XRP tokens.

On the other hand, there are 100 billion XRP in circulation, all of which have been pre-mined. Ripple does not require any stakes or miners. The network controls almost 60 billion of these total 100 billion XRP coins.

Similarly, Stellar has pre-mined 100 billion Lumen tokens (XLM), with the Stellar Development Foundation overseeing the distribution of the coins.

The Stellar Foundation owns 5% of the tokens. In addition, stellar has a feature called Spam Fees to combat spamming. The platform charges a nominal transaction fee.

Payment Partners:

Some of the few payment partners of the Ripple network include American Express, SBI Group, Western Union, MoneyGram (no longer), Accenture, and GMT.

For the IBM World Wire initiative, Stellar Lumens has partnered with IBM. The IBM World Wire is a global network that allows financial institutions to instantly process and settle cross-border payments.

Inflation and Deflation:

Due to its rising scarcity, XRP is a deflationary currency, which means that its buying power will likely increase over time.

The reasons for its scarcity are obvious. For instance, the transaction fees on XRP are burnt or permanently withdrawn from circulation.

Conversely, Stellar has a set yearly inflation rate of 1%. As global inflation develops, inflation guarantees that those who can access XLM continue to get a reasonable value for the money.

Organizational Structure:

Ripple is a for-profit organization, whereas Stellar is a non-profit organization. This is because the creator wanted to do something to help the unbanked and underbanked countries.


Because Ripple is a closed-source protocol, no one else has access to it. On the other hand, stellar is open source, implying that anybody may use it.

Because it is open-source, anybody may modify it to meet their needs and use it accordingly.

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Side-by-Side Comparison of Stellar and Ripple:

As we have gone through the key differences between the stellar and Ripple, here’s a side-by-side comparison between these two networks.

This will help you understand the Stellar vs Ripple debate even better. So, let’s start!


Features Stellar Ripple
Founded Founded by the Stellar Development Foundation in 2014. Founded by the XRP Labs in 2012.
Accessibility Large financial institutions, Banks, etc. General People
Protocol Open-Source Close-Source
Control Decentralized Centralized
Native Token Lumens (XLM) Ripple (XRP)
Maximum Token Supply 50 Billion 100 Billion
Mining Not Allowed Not Allowed
Consensus Algorithm Stellar uses the Stellar Consensus Protocol (SCP), Federated Byzantine Agreement Ripple Protocol Consensus Algorithm (RPCA)
Value Influencer Inflation Deflation
Organization Type Non-profit Organization Profit Making Organization

Stellar vs Ripple: Similarities

Apart from some of the major differences, there are a lot of similarities between Stellar and Ripple.

Limited Token Supply:

Both networks offer a limited supply of native tokens.

Mining is impossible for any cryptocurrency because all accessible coins have already been created.

The maximum quantity of XRP is capped at 100 billion coins, whereas the maximum supply of XLM is 50 billion. As of October last year, around half of each was in circulation.


Both networks offer the lowest to very little fees. The low transaction fees reflect each cryptocurrency’s original purpose: to assist individuals in securely transferring fiat money at a low cost.

Compared to equivalent fiat currencies, transaction costs are continuously cheaper.

Transaction Time:

Both networks provide faster-transferring services. A transaction takes roughly five to ten seconds to complete.

The user interface facilitates the transmission of payments fast, which is preferable to what consumers are used to.

Mining Not Allowed:

As both Ripple and Stellar have private nodes, mining is not allowed on either of them. When it comes to token circulation, both Stellar and Ripple are under the developers’ control.

Stellar vs Ripple: Which One To Choose?

Stellar and Ripple both are great payment networks for transferring money internationally. However, both come with their own set of advantages and limitations.

For banks and other financial organizations looking to settle foreign payments swiftly and affordably, Ripple is the best possible option.

Meanwhile, Stellar is an excellent option for individuals who wish to transfer or receive money swiftly and affordably.

On the other hand, Stellar could be a better option if you’re seeking a more decentralized blockchain.

Conversely, Ripple could be a better option if you’re searching for a blockchain-based in the US.

Ultimately, the decision to choose the best depends on you and your requirements.

The Final Verdict:

As we have ended this Stellar vs Ripple debate, hope you have understood the topic in the best way possible. Here’s a quick summary of the topic: Ripple and Stellar aim to make international payments easier to complete, especially those involving numerous currencies.

While Stellar focuses on the unbanked and underdeveloped countries, Ripple targets banks when expanding its technology.

Both have extremely high market values and popularity rankings and comparable prices.

Therefore, it seems that Ripple and Stellar are quite popular these days. As a result, the crypto community appears to embrace both networks despite their similarities.

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Will Stellar Outperform Ripple?

The value of Stellar (XLM) has been continuously rising for the last few months.

Moreover, there are not any signs of its slowing down. So, we may expect that Stellar will outperform Ripple in the coming years.

Ripple vs Stellar: What Should I Buy?

Stellar’s token XLM is more accessible for individuals, while Ripple is more focused on large financial institutions.

Who Is XRP Biggest Competitor?

Stellar Lumens is considered the biggest competitor for XRP.

Why Is XRP So Low?

The main reason behind the low value of XRP remains the lawsuit against it filed by the US Security and Exchange Commission (SEC).

How Much Will XRP Be in 2030?

According to the price prediction, XRP is expected to be worth $5 by 2030.



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