Ripple Vs Stellar: Which Is the Better Cryptocurrency?

Since the emergence of cryptocurrencies, we have witnessed exciting products in the industry. Notably, some projects are unique while others tend to look similar. For crypto lovers, it is not hard to notices that projects like Ethereum and NEO have some striking similarities.

Despite the industry witnessing an increase in the number of projects, Ripple and Stellar appear to stand out from the pack.  These two projects are gaining interest and are appealing to future-minded individuals. Both Ripple and Stellar have some similarities in identity and technologies. However, the two projects tend to differ in terms of philosophies and the general purpose within the cryptosphere.

Here is a breakdown of the similarities and differences between the two projects. We also explain the best cryptocurrency between the two and why it is worth investing in.

Understanding Ripple

Compared with Stellar, Ripple emerged first in 2012. The project is a product of Chris Larsen and Jed McCaleb. Developers of Ripple intended to make the system support cross border money transactions instantly for free, almost.  Its started as a payment protocol, to ease the transfer of money between borders. 

Traditionally, international money transfer is outdated, slow and costly. Ripple wants to change this model. They are trying to change this by using xRapid – which already have a lot of banks that are using it – and probably soon Binance will use it too. 

To have a better understanding about xRapid, you may check the xRapid explained article. Same for xCurrent or xVia.

Understanding Stellar

Stellar emerged a few years later after Ripple with Jed McCaleb being one of the project co-founders. Stellar also deploys the use of blockchain to process payments. It is important to note that the code bases for Ripple and Stellar are all similar.

Stellar’s entire project goal strikes some similarities to Ripple. It seeks to enable international payment instantly and cheaply.  Stellar stands out a bit because its primary focus is on individuals unlike Ripple’s target for institutions like banks. Stellar’s protocol is a bit more flexible than current payment options – such as PayPal. The fee of using Stellar’s service is low too – a merely 0.00001 XLM per transaction. Ripple’s XRP can also be purchased with Skrill.

The developers came up with Stellar Lumens or XLM as the native cryptocurrency. Stellar also had the biggest cryptocurrency airdrop to date – with $125 Million USD distributed among the people that verified their identity on

Notable Similarities Between Ripple and Stellar

When it comes to Stellar vs Ripple, we have had some fundamental similarities to point out. It is not a surprise that they strike some similarities considering that their code base is the same. Additionally, the two projects were co-founded by Jed McCaleb. It is important to note that Ripple and Stellar do not depend on miners. Lack of miners means that both projects stand out compared to other PoW cryptocurrencies.

Furthermore, the blockchain used by Ripple and Stellar claims to be decentralized. The truth is, the cryptocurrency enthusiasts have solid points when they claim that both of them are more centralized than decetralized. 

However, both don’t permit running of nodes by the public. Developers of the project kept the nodes private and operate their nodes on many servers. When it comes to authentication of payments, the two projects use the distributed ledge. They have a reputation for instant payments at a lower cost.

Ripple and Stellar have prioritized keeping the value of the coins low. Maintaining the value will enable both projects to have affordable services with the aim of supporting cheap cross border payments. This is a significant difference to Bitcoin where coins are only released once the maximum has been achieved. 

Key Differences between Stellar and Ripple

At a glance, Ripple and Stellar vary from each other based on their philosophies. Ripple developers focused on making the project the solution for banks to instantly and cheaply conduct cross border payments. On the other hand, Stellar focus on individuals. The project targets people in developing countries who lack access to financial services. According to Stellar’s developer McCaleb, he was motivated by his passion for helping people. A key difference between Ripple and Stellar is the fact that the Stellar code is open-source and can be found on Github. Unlike Ripple, which is built mostly for banks. 

The two projects also differ on nodes consensus. A conses model is a system that is used to validate payments without the use of any intermediaries. For Stellar, it deployed a protocol dubbed Stellar Consensus Protocol. On the other hand, Ripple implements the Proof of Corrections protocol to validate payments.  All these protocols are different from the popular PoW and PoS models popular among other crypto projects.

Which is the best project

Before determining the better holding in the Stellar vs Ripple debate, we have some factors to consider. After Bitcoin, Ripple’s XRP is the second valuable token after overtaking Ethereum.  Because Ripple joined the market two years after Stellar, the latter has managed to ink key partnerships with more than 100 banks. Such collaboration plays a crucial role in enhancing the trust in Ripple while at the same time improving the project’s market liquidity. Generally, Ripple stands out due to its notable success. The platform has proven a point while attempting g to revolutionize the cross border payments system.

Stellar looks like an underdog when compared to Ripple due to its plan to enable affordable financial services across the globe. It is evident that Stellar still lags behind Ripple in terms of success, but it has managed to maintain its position in the market. The token is ranked sixth, but its among the cryptocurrencies with a good use case and usage around the globe. We also have a possibility that Stellar will attract more customers in the coming days as it sets base in developing countries. This model makes it easier for people to transact globally using XRP.


It is important to note that both Ripple and Stellar are on course to be among top global projects. Despite being a product of one individual, Ripple and Stellar have different ideologies with a concentration on a diverse customer base.

For the Ripple vs Stellar debate, it is only noble to note that each project comes with its strength and weaknesses. Before settling on any token, conduct research and decide on a project that will give you value for your money. 

We believe that both project have a crucial role in the cryptocurrency field development and both would probably succeed. Which one will have a higher price in the future? That will depends on the business decisions each company will take, adoption and the user base of the companies. If you think about buying XLM or XRP – keep in mind that there’s a big risk as the market is extremely volatile these days.

Image Source : Medium


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