Stellar Vs Ripple: Which one deserves your investment?

Stellar Vs Ripple: Which one deserves your investment?

By jordanjnr | Crypto Digest | 8 Dec 2019

This post took quite some time and effort to put together. I'd love a tip and follow to encourage my work. Cheers!

First off, I'd like to state that this article isn't like my other versus articles. This is a comparison of both technologies to see where they differ,and at the end,I give my own thoughts on which one is best to invest in.

I also welcome your thoughts in the comments!

Let's get started!

First off,and very surprisingly,Ripple and Stellar were created by the same person!

I bet you didn't see that coming.

Before we proceed, let's have a little background in both cryptocurrencies.


  • Ripple was created in 2013 by American programmers David Schwarz and He'd McCaleb.
  • The currency of the protocol,XRP is the third highest cryptocurrency by market cap,despite costing a mere fraction of what the first two cost.
  • Ripple is the name of the company and protocol(the company is technically called Ripple Labs) while XRP is the currency powering the platform.
  • Ripple was created to allow banks and large financial organisations send money across the world as quickly and cheaply as possible(Fun fact: Transactions on the Ripple platform are almost free!)
  • Ripple is largely centralised,with the parent company, Ripple Labs,holding 60% of all the Ripple that will ever be created(that's capped at 100 billion)

Now,on to Stellar.


  • Stellar was created in 2015 by,you guessed it,Jed McCaleb.
  • Again,Stellar is the protocol and name of the company,while Lumens is the name of the currency powering the platform.
  • Stellar uses a distributed ledger protocol to process transactions,similar to how Ripple works(we'll discuss this later in this post)
  • Stellar is aimed more at users of financial institutions that the institutions themselves.
  • The Stellar protocol can be used to exchange two fiat currencies when sending. But in thee case where this isn't possible,the platform converts the sending currency to Lumens,and then converts it to the currency that is required.

Alright,that was a quick background on both of them. 

Now let's check out their similarities.


  • They were both founded by Jed McCaleb.
  • They both offer almost free and instantaneous transactions.
  • Developers control both their circulating supply(causing a great deal of centralisation,but we'll rant about this later)
  • Both use distributed ledger technology.
  • Both can't be mined because they are run on private nodes.

Now on to their differences.


  • Stellar is aimed towards everyday people who wish to send money abroad cheaply,while Ripple is aimed more at Banks and corporations who wish to transfers larger amounts quickly.
  • Stellar runs on the Stellar Consensus Protocol while Ripple runs on the proof of correctness protocol.
  • Stellar is inflationary (at 1% per annum) while Ripple is deflationary.
  • Even though they're both centralised,Stellar is a little bit less centralised than Ripple.

Now,on to the better investment part.


Stellar has a lot going for it. It's a lot less decentralised,so if the world moves towards decentralisation in the future, it'd do wonders for its price. It's also aimed towards everyday people,and in my opinion, it's protocol trumps the one being used on Ripple.

But there's no denying that Ripple is just better than Stellar. It has a market cap almost 4x more than that of Stellar($12 billion versus 4 billion),and because it is aimed at large banks and organisations,the more deals it signs,the higher its prices go. The fact that the Bank of America uses the Ripple protocol speaks volumes for the long term utility of Ripple.

So yeah,in my opinion,Ripple is a better investment.

But let me know your own thoughts in the comments down below.

Thanks for stopping by!

This post took quite some time and effort to put together. I'd love a tip and follow to encourage my work. Cheers!


Hello! I am a Blockchain enthusiast,bitcoin investor,CEO of BigTycoon group and I love crypto! Hit me up @TycoontechBlog on twitter!

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