• Ripple is a real-time international money transfer network aiming to revolutionize the financial system and transform the future of finance.
• Stellar Lumens is a blockchain-based payment network that enables international transfers at a fast and low cost, primarily targeting unbanked individuals.

Two of the fastest-growing cryptocurrency projects are Ripple (XRP) and Stellar Lumens (XLM). In part, this is owed to their similar approach and shared goal to transform the financial landscape. Both projects are payment networks that seek to offer real-time settlement and low-cost international transfers. To achieve this, Ripple is fueled by its ntative token XRP while Stellar Lumens utilizes XLM tokens. While both projects are based on blockchain technology, Stellar uses the Stellar Consensus Protocol (SCP) while Ripple uses the Ripple Protocol Consensus Algorithm (RPCA).

According to the Ripple whitepaper, “The Ripple Protocol Consensus Algorithm demonstrates a novel approach to distributed payment systems, achieving low-latency consensus and robustness in the face of Byzantine failures.” The Stellar whitepaper on the other hand notes that “it is a new model for consensus called federated Byzantine agreement (FBA). It promotes organic network growth by allowing open membership, in contrast to traditional models that rely on a fixed membership list.”

One of the key differences between the two projects is that Ripple is a for-profit company, while Stellar Lumens is a non-profit organization. Additionally, Ripple focuses on offering business solutions targeted at large financial institutions. Stellar on the other hand focuses on retail solutions aimed to help the unbanked population and expand financial inclusion to the masses.

Ripple was created in 2012 while Stellar was created in 2014. Interestingly, both were founded by Jed McCaleb but the founder helped create Stellar after leaving Ripple due to disagreements. At the time of press, XRP has surpassed a market cap of $ 26 billion while XLM has a market cap of over $3 billion. Due to their distinct approaches, Ripple holds a large portion of XRP which is periodically released into the market, Stellar distributed a significant amount of XLM for free to promote adoption.

Backing Stellar Lumens (XLM) or Ripple (XRP)?

Ripple aims to revolutionize the banking system. The traditional system is flawed, with international settlements being expensive, slow, and tiring. Ripple is a global payment network using XRP tokens as the median, Ripple offers liquidity for faster, cheaper, and more secure transactions. By offering business products and solutions, the network has become a favorite for financial institutions and organizations all over the world.

Related: Is the Global Finance Elite Part of the Ripple and XRP Ecosystem? CTO David Schwartz Dispels All FUD

Stellar is looking to serve those left out by the banking system. The network helps facilitate financial inclusion to a population with difficulties accessing the traditional banking system.

While similar in nature, the two projects have taken different approaches meaning instead of competing with each other they serve different needs in the world. As such, their long-term success potential is great. Unfortunately, Ripple has been tied in a 3 year legal battle with the SEC over its tokens which the regulators view as securities. The company is increasingly confident that it will win the case.

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