![]() ![]() ![]() It is imperative to your financial stability to ensure you are using the most up-to-date information. Investing can always provide big rewards, but it can also pose significant risks. Good To KnowĪt this time, investing in Stellar (XLM) seems to be a wise move, but it is essential to remember that things can change quickly. Some believe Ripple’s status as a profit-making company poses a conflict of interest where its stewardship and decision making over XRP Ledger, the software behind the platform, are concerned, according to the cryptocurrency exchange Kraken. In terms of the organizations behind the platforms, Stellar is supported by the nonprofit Stellar Development Foundation, while Ripple is a for-profit company. While the average person can use Ripple and banks can use Stellar, they were each designed for specific users to provide a more efficient experience to their target markets. The platform provides access to the global economy through simple, quick and low-cost transactions. Stellar, on the other hand, was built with the average user in mind and for those in developing countries. It improved the efficiency of banks and financial systems. Ripple was created so that banks could make transfers around the world in a matter of seconds for a very small price. The platforms differ significantly in their goals. These similarities are due mainly to the fact that McCaleb, one of the founders of both platforms, knew what worked well with Ripple and brought that vision and knowledge with him to create Stellar. They use almost identical blockchain code, neither allows mining, both use a distributed ledger and both provide nearly free and instantaneous transactions. People who have used both Stellar and Ripple have noted the similarities between the two platforms. What Are the Differences Between Stellar and Ripple? Lumens are the crypto asset used by the platform. You might also hear Stellar and lumens used interchangeably, but Stellar is the platform itself. Moving Away From StellarsĪt the time of its launch, the platform’s native currency was called “stellars.” Stellar later changed the name to lumens, but the original name stuck with many people, so you might still hear the term stellars and see lumens listed that way on cryptocurrency exchanges. It takes only seconds to complete the entire conversion, making it easy to send and receive money from anywhere in the world. dollars to a recipient in Mexico, Stellar converts the payment to lumens, and the recipient can receive the payment in pesos. ![]() For example, if you send a payment in U.S. However, lumens also act as the intermediate currency that allows Stellar users to execute trades quickly.Ī built-in protocol automatically converts money sent through Stellar to lumens and then to the desired coin. ![]() Lumens are most often used to pay transaction fees on Stellar. While the Stellar platform is open to all representations of money and cryptocurrency assets, it does provide its own digital currency called lumens, or XLM, which is the foundation of the network. Since that time, Stellar has signed on over 55,000 accounts of its own and built a network of partners that includes Coinbase, Franklin Templeton and MoneyGram. In less than a year, Stellar housed almost 3 million user accounts. Stellar has experienced many growth spurts, such as when Mercado Bitcoin announced its use of the platform. Soon after, Stripe’s CEO collaborated with McCaleb and Kim to create the nonprofit Stellar Development Foundation. McCaleb and former lawyer Joyce Kim launched Stellar as a platform for the everyday user. Stellar began in 2014 when Jed McCaleb left Ripple, a platform he co-founded, to create a new financial system. This means that the activity carried out on Stellar is not monitored by a singular source. Like other decentralized platforms and exchanges that use blockchain technology, Stellar is spread across multiple servers. It was created in 2014 and launched in 2015 with the mission of bringing the world’s financial systems together under one network. Developers can use Stellar to deploy global payment apps, asset exchanges and micropayment services for large and small businesses alike. Stellar is a decentralized network on which users can create, send and trade several types of cryptocurrency. ![]()
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