Ripple vs Stellar

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Difference Between Ripple and Stellar

Both Ripple and Stellar are cryptocurrencies where. Ripple was established in the year 2012 for-profit organization to facilitate payments to financial institutions and large corporations. In contrast, Stellar was established in 2014 as a not-for-profit organization with the main motive of facilitating financial transactions at low cost from one person to another person.

Both Ripple and Stellar have taken the cryptocurrency sector by storm. There might be some similarities between them as both of the crypto-currencies were co-founded by Jed McCaleb, and their functioning and technology appear to be somewhat the same. But, both of them have some differences.

Ripple was first created to make international transactions both cheaper and at a faster rate. While Ripple started growing, it attracted a lot of big corporations and financial institutions.
It has become so popular that some corporations are seriously considering using ripple for their international transactions. Later on, Ripple started concentrating on only big corporations and financial institutions, leaving individual transactions behind.
Later on, Jed McCaleb started working on stellar. It is a not-for-profit entity created to correct the mistakes and fill the gaps left behind by ripple.
The Stellar Development Program (SDF), which was created stellarly, wanted to help in person-to-person transactions, and its goal was to provide financial inclusion to impoverished individuals.
Although stellar had similar functioning to ripple initially, the complex structure made the developers of stellar come up with a different kind of functioning that better suits their product.
Stellar is very different now from ripple as its whole functioning, the programming has been changed, and the current stellar has very little resemblance with that of ripple.

Difference Between Ripple and Stellar

Ripple vs Stellar Infographics

Let’s see the top 9 differences between ripple vs. stellar.

Key Differences

While Ripple is a for-profit organization that aims to make use of the opportunity to earn more profits, Stellar is a not-for-profit organization that aims to reach out to more people and helps the needy.
Ripple is the type of cryptocurrency that attracts large corporations and financial institutions, providing them a fast and safe method of an international transaction at a considerably low cost. Stellar is the type of cryptocurrency that attracts a person to personal transactions, and it also aims to reach as many people as possible.
Ripple uses closed source software that doesn’t give access to others. But stellar runs on open-source software that is accessible to everyone. It helps people customize the software according to their requirements and use them. Even though people can access stellar software, important data and transactions are kept strictly secure.
Ripple has attracted many financial institutions and companies to invest, and nearly 200 people, including some top-level executives from top-notch companies, have invested around 100 million dollars. On the other hand, stellar has attracted more entrepreneurs and individuals, and nearly 20 people have invested in it. It is expected that more and more investors will join in for the noble cause.
Ripple is a profit-making company with a centralized control type where certain things are always done by their will. Stellar is different as it uses a decentralized type of control, and thereby it doesn’t have such restrictions.
The inflation rate of ripple is deflationary, whereas stellar has inflation of 1% every year.

Ripple vs Stellar Comparative Table

Basis for comparison	Ripple	Stellar
Established	2012.	2014.
Type	For-profit organization.	It is a Not For-profit organization.
Mainly Used	For payment facilitation in large corporations and financial institutions.	For low-cost financial transactions from person to person and to uplift the poor.
Software	Closed source.	Open-source.
Type of Control	More centralized control.	Decentralized control.
Total Number of Coins	100 billion.	103 billion.
Consensus Used	Proof of Correctness.	Stellar consensus protocol.
Invested by	Almost 200 people.	A small team of around 20 people.
Inflation	Deflationary.	1% of inflation every year.

Conclusion

Although both are cryptocurrencies, they are not in direct competition. It is because their target markets are different as well as their functioning.

The idea behind creating these two cryptocurrencies is to serve a larger audience instead of just a niche. While Ripple serves the higher-upper class, big businesses, wealthy individuals, Stellar takes care of the people from the middle & lower class.

Jed McCaleb wanted to create two crypto-currencies that serve the needs of both markets. As a result, one will help promote the brand equity of the other, and both ripples vs. stellar will become the top cryptocurrencies in the world.