Ripple vs Stellar
Last Updated :
15 Mar, 2022
Ripple is actually a payment network that is based on blockchain, it is RTGS means a real-time gross settlement system that is centralized. It was formed by Ryan Fugger in 2004 with the purpose of creating a digital payment system in which he can create his own money to be used among a network of trustworthy nodes.
Stellar is a blockchain consensus protocol and distributed network having open membership means each and everyone can become a participant of this network and it does not require any special permission from its participants. To become a participant one can perform mining or can save the state of blockchain or can perform any other simple task for contributing to the blockchain network.
Following is a table of differences between Ripple and Stellar:
|
Ripple
|
Stellar
|
1. |
Ripple is a permissioned and centralized payment network. |
Stellar is a permissionless/open blockchain platform. |
2. |
It uses XRP as its cryptocurrency. |
It uses lumen as its cryptocurrency for trading. |
3. |
Ripple was established by Ripple Labs in 2012. |
Stellar was established by Stellar Development Foundation in 2014. |
4. |
Ripple uses Ripple Consensus Algorithm for agreement among nodes. |
Stellar uses Federated Byzantine Agreement for consensus. |
5. |
Ripple is a profit-making organization. |
Stellar is a non-profit making organization. |
6. |
Ripple has a fixed supply of 100 billion XRP. |
Stellar has inflation of 1 percent. The governance annually. |
7. |
Governance model of ripple is centralized in nature so it is prone to censorship. |
Governance of stellar is decentralized so it is free from censorship. |
8. |
Partners of ripple are Kotak, Axis Bank etc. |
Partners of stellar are AnchorUSD, Smrtlands, Wrex etc |
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