Ripple (XRP) and Stellar (XLM): What’s The Difference?

In this article, we will compare XLM and XRP. This will help us better understand the main differences between these two projects.

Ripple (xrp) And Stellar (xlm): What’s The Difference?_65b96f2573e92.webp

XLM vs. XRP: Overview

XLM is the token of the Stellar blockchain (sometimes called Stellar Lumens). Although Stellar is technically a coin, it is often referred to as a ‘token’ because all of its coins are pre-mined.

XLM is the token of the Ripple blockchain. Like XLM, XRP is technically a coin but is often referred to as a ‘token’ because of its pre-mined status.

Ripple (XRP) and Stellar (XLM): What’s the difference?

ripple xrp and stellar xlm whats the difference 65b96f2577877

The main difference between Stellar’s XLM and Ripple’s XRP lies in the customer base and organizational model of the two projects:

– Ripple focuses on providing payment solutions for large banks and financial institutions. Meanwhile, Stellar targets individuals and small and medium-sized businesses.

– Ripple is operated on a centralized model, while Stellar is a decentralized non-profit organization.

– Ripple owns and controls the majority of the XRP supply. Stellar widely distributes XLM to promote adoption.

– The two projects use different consensus protocols, and were born 2 years apart.

– The market capitalization of XRP is about 9 times that of XLM.

In general, although they aim to create a digital payment system, Ripple and Stellar have different directions and ways of operating. This leads to differences in technology, organizational structure and market of the two currencies XRP and XLM.

Ripple (XRP) and Stellar (XLM): What do they have in common?

Despite some differences, Stellar and Ripple have many similarities in purpose and how they work:

– Co-founded by Jed McCaleb, an influential figure in the field of cryptocurrency.

– All operate on their own blockchain platform to provide digital money transfer services.

– There is a mechanism to collect small fees online to prevent spam.

– Fast transaction processing speed, only takes a few seconds.

– Plays an important role in the DeFi (decentralized finance) ecosystem.

– The main function of both is to facilitate the easy, fast and cheap transfer of digital assets.

In general, despite competing directly with each other, XRP and XLM still have many similarities in terms of use and operation. This creates healthy competition between the two currencies in the field of digital money transfer.

Ripple (XRP) and Stellar (XLM): How do they work?

ripple xrp and stellar xlm whats the difference 65b96f257a099

Both Ripple (XRP) and Stellar (XLM) work in a similar way.

A financial institution (XRP) or individual (XLM) converts fiat currency into the coin of their choice via a Ripple or Stellar cryptocurrency bridge.

Using this feature, crypto asset transfers are done in seconds.

Once the transfer is complete, the coins will be converted back to the specified currency.

Related: Earn Money with AZC

What is Ripple (XRP)?

ripple xrp and stellar xlm whats the difference 65b96f257c692

Ripple Labs was founded by Jed McCaleb in 2012 after selling Ripplepay.

Ripple Labs’ aim is to create a blockchain that is faster and more energy efficient than Bitcoin. In 2012, Ripple officially launched with the creation of 100 billion XRP tokens.

Unlike most existing blockchains, Ripple bypasses traditional mining (Bitcoin) or validation (Ethereum) consensus mechanisms and authentication between network participants. Compared to bitcoin, the energy used to validate Ripple XRP transactions is essentially zero.

“The Ripple protocol consensus algorithm represents a new approach to distributed payment systems, achieving low-latency consensus and robustness in the face of Byzantine failures.”

What is Stellar (XLM)?

ripple xrp and stellar xlm whats the difference 65b96f257ec1c

Jed McCaleb also launched Stellar, but he did so in 2014, two years after launching XRP.

Unlike Ripple, Stellar is a non-profit organization. McCaleb’s goal with Stellar is to make it easier for people to move money globally. With Stellar, you can send money to any location in the world in seconds for just a few cents.

Like Ripple, Stellar is not affected by computationally heavy consensus mechanisms. Using a network of validators, Stellar transactions are validated in seconds with near-zero energy requirements.


In short, both Ripple (XRP) and Stellar (XLM) are strong contenders in the cryptocurrency world, each with their own advantages and use cases.

Both tokens have strong partnerships and continue to innovate in their respective fields. Ultimately, individual investors and businesses must evaluate their specific needs and determine which cryptocurrency is best for them.


(100 votes)

Leave a Reply

Your email address will not be published. Required fields are marked *


Azcnews Pepe Poised To Surge As Buy Signals Emerge

News | Altcoin | Editor Choice

Pepe Poised to Surge as Buy Signals Emerge

Pepe's price has started to climb following news of the potential approval of an Ethereum ETF by the end of summer. Strong buy signals have emerged, potentially driving Pepe up by over 63%.

Will Hamster Kombat Be Listed On Binance Or Okx

News | Altcoin | Editor Choice

Will Hamster Kombat be Listed on Binance or OKX?

Hamster Kombat - a tap-to-earn project similar to Notcoin, has attracted over 150 million users and plans to conduct an airdrop and get listed on exchanges. So, which exchange will list Hamster Kombat? Read more details here!

Azcnews Binance Lists Zksync With Zk Token Distribution Program

News | Altcoin | Editor Choice

Binance Lists ZKsync with ZK Token Distribution Program

Binance has announced the listing of ZKsync (ZK) with the ZK Token Distribution Program.

Controversy Surrounding Zksync Airdrop

Altcoin | Bitcoin | Editor Choice

Crypto Weekly (10/06 – 16/06): BTC Correction, Controversy Surrounding zkSync Airdrop

The crypto market last week witnessed significant selling pressure on Bitcoin, leading to a price correction. Additionally, zkSync conducted an airdrop for its community after two years of development, but it sparked controversy and received mixed reactions from the community.

What Is Rss3 Information About Rss3 Token

Editor Choice | Research | research

What is RSS3? Information about RSS3 Token

One project that seamlessly integrates AI with social media platforms is RSS3. So, what is RSS3? And is the RSS3 Token a worthwhile investment? Let’s explore with AZCNews!