The cryptocurrencies XLM (Stellar Lumens), XRP (Ripple), ADA (Cardano), and ALGO (Algorand) share some fundamental characteristics, despite having distinct goals and architectures. Here’s what they have in common:
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1. Focus on Efficiency and Scalability
These cryptocurrencies were designed to offer fast and low-cost transactions, aiming to solve the scalability problems faced by traditional networks such as Bitcoin and Ethereum.
XLM and XRP: Focused on global remittances and international payments.
ADA and ALGO: Aimed at smart contracts and scalable blockchain solutions.
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2. Use of Alternative Consensus to Proof of Work (PoW)
They use more energy-efficient consensus mechanisms:
XLM and XRP: Use models based on trusted validation by pre-selected nodes (Stellar Consensus Protocol and Ripple Consensus).
ADA: Uses Ouroboros, a highly efficient Proof of Stake (PoS) protocol.
ALGO: Implements Pure Proof of Stake (PPoS), which combines speed with security.
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3. Financial Inclusion Goal
These cryptocurrencies have the mission of facilitating access to global financial services:
XLM and XRP: Connect banks, financial institutions, and people in underserved markets.
ADA and ALGO: Promote the development of decentralized solutions for financial applications, smart contracts and dApps.
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4. Support for Smart Contracts and DeFi (except XRP)
ADA and ALGO: Focus on smart contracts to develop decentralized applications and support the DeFi sector.
XLM: Although not your priority, it can also support simple financial applications.
XRP: Focused exclusively on global payments, with no native support for smart contracts.
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5. Partnerships and Sustainable Development
All of them have strategic alliances with institutions and aim to solve real problems, such as financial inclusion, governance and energy efficiency.
ALGO and ADA, specifically, are known for their focus on environmental sustainability and technical innovation.
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These cryptocurrencies share a vision of faster, more accessible and efficient networks, with a focus on solving specific problems, whether in the financial sector, smart contracts or global inclusion.
