A brief comparison between XRP and XLM
🔹 Main objective:
- XRP (Ripple): aims to facilitate financial transfers between banks and large financial institutions.
- XLM (Stellar): focuses on facilitating financial transfers for individuals and small businesses, especially in areas with limited access to financial services.
🔹 Partnerships and adoption:
- XRP: Extensive partnerships with banks and financial institutions around the world such as Santander and Bank of America.
- XLM: Partnerships with technology companies such as IBM and non-profit organizations.
🔹 Mechanism of operation:
- XRP: relies on a distributed ledger (XRP Ledger) to settle payments quickly and at the lowest cost.
- XLM: uses the Stellar network to achieve fast transfers across digital currencies and traditional currencies.
🔹 Fees:
- XRP: Very low fees, amounting to a fraction of a cent per transaction.
- XLM: Almost zero fees (0.00001 XLM per transaction), making it ideal for small transfers.
🔹 Speed:
- XRP: Transactions take around 3-5 seconds.
- XLM: Similar to XRP, only takes a few seconds.
🔹 Supply:
- XRP: Maximum supply is 100 billion coins, and cannot be mined.
- XLM : Maximum supply is 50 billion coins, and cannot be mined.
🔹 Decentralization:
- XRP : Criticized for being more centralized due to$XRP Ripple Labs’ heavy control.
- XLM: Considered more decentralized due to the open nature of the network and its non-profit orientation.
🔹 Uses:
- $XRP
XRP: Facilitates international remittances and enables on-demand liquidity for banks.
$XLM : Enables remittances betwen individuals and facilitates donations and cross-border payments.