The difference between Stellar Lumens and Ripple

Stellar Lumens (XLM) and Ripple (XRP) are both digital currencies, but each has its own uses. Stellar is used for payments, remittances, and tokenization, while Ripple is used for cross-border remittances and as a banking bridge. Stellar uses the Federated consensus protocol, while Ripple uses the XRP Ledger consensus protocol.

The difference between Stellar Lumens and Ripple

Definition

Stellar (XLM) and Ripple (XRP) are both decentralized digital currencies, but they have unique features and uses.

Consensus Mechanism

• Stellar Lumens: Uses a consensus mechanism called the Federated Consensus Protocol (SCP), in which a group of verified nodes validate transactions.
• Ripple: Uses a consensus protocol called the XRP Ledger, where a group of trusted validators confirm transactions.

Main uses

• Stellar Lumens: Mainly used for payment, remittance and asset tokenization.
• Ripple: Mainly used for cross-border remittances and payments, and as a bridge between banks and financial institutions.

Technical Differences

• Blockchain: Stellar is based on a distributed ledger, while Ripple uses its own ledger .
• Transaction Speed: Stellar transactions are typically confirmed within 5 seconds, while Ripple transactions are confirmed within 3-5 seconds.
• Scalability: Stellar claims to have higher scalability than Ripple, being able to handle more transactions.
• Energy Consumption: Stellar uses an energy-efficient consensus mechanism called Proof of Stake, while Ripple uses a hybrid of Proof of Stake and Proof of Work.

Application scenarios

• Stellar Lumens: Suitable for payments, remittances and tokenization, especially in emerging markets and developing country.
• Ripple: Suitable for cross-border remittances and payments, as well as cooperation between banks and financial institutions.

Market Cap and Circulation

As of March 2023, Stellar’s ​​market cap is $2.4 billion, with a circulating supply of 25 billion. Ripple has a market cap of $19 billion and a circulating supply of 100 billion.

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