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Are Stellar (XLM) and Ripple (XRP) really that comparable?

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Are Stellar Ripple Comparable
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We can see how the cryptocurrency market grows every day. Steadily the offer of virtual coins is turning into a larger one, diversifying like that the wideness of the industry and each time, providing more new services that attach to the needs of the sector. However, sometimes in this amplitude of the repertory, many similarities can be found betwixt cryptocurrencies; even getting to a point where it results challenging to differentiate one from the other.

That is exactly the case of Stellar (XLM) and Ripple (XRP), two separate tokens that are linked one to the other very often. As a matter of fact, there are significant similarities between Stellar (XLM) and Ripple (XRP), many of which the most popular include the fact of having been founded by the same person Jed McCaleb.

But the truth is that despite the common points, these coins behave very differently, and their goals are the same way, very apart. Let’s see what the main differences between the tokens of Stellar and Ripple are!

The overall dissimilarity

The first difference has to be the purpose of each one of the cryptos. While it was supposed that Stellar was created with the intention of fixing the errors and improving what Ripple has, they actually approach different objectives.

For instance, Stellar aims to work with individuals to provide them with financial product and services at a meager price, creating an opportunity to fight against poverty and develop the full financial potential of each person.

On the other hand, Ripple works on a network with the vision of connecting bank entities, exchange platforms, and payment providers through the RippleNet. Its primary mission is to provide a safe network where transactions would be completely effective.

Similarly, while Stellar is a not-for-profit organization, Ripple is the opposite, a profit-seeking company envisioning to work on solutions to the most significant financial enterprises in the industry.

The protocols

At the beginning both Stellar and Ripple used to work under the same protocol, even sharing almost the same code. However, the story is entirely different now as currently they use different protocols and share almost nothing of the code.

At the moment, Stellar uses the Stellar Consensus Protocol (SCP) which can be considered as a big-scale evolution of the Federated Byzantine Agreement (FBA); in essence, it offers complete decentralization, flexible trust, bounded security and low latency. It all remains on decentralization, a fact that Ripple does not offer at the moment.

Ripple, on the other hand, uses the Ripple Protocol Consensus Algorithm (RPCA), which is basically based on the mechanism of Proof of Correctness (PoC).

Likewise, when it comes to the speeds of each protocol the first works at a pace of 1000 tx/s in contrast to the protocol used by Ripple, which in the lapse of each second is applied to all of the nodes.

Strategic alliances and collaborations

In this matter, Stellar is a few steps behind Ripple, which has developed the best partnership relations across the world.

Nevertheless, the Stellar Development Foundation has also created solid partnerships setting up payment platforms in some countries of the Europe continent and the Philippines, having Africa as the next target, a market potentially powerful to work with as is highly unexplored and accomplishes the vision of the company.

Ripple has developed relations all across the globe with some of the most crucial bank entities, including central banks. There remains a crucial difference between the two companies; while one is focusing on building relations with non-bank institutions, the other targets only the banking industry.

The current market differentiation

It seems somehow that even when Stellar has developed a great business model it still has so much to do to reach the level of its contender Ripple. As of today, Ripple figures at the number 3 spot in the charts of the website Coinmarketcap.com while Stellar is at the 8th position.

Both virtual currencies have decreased in value in the last 24 hours, Ripple at a 7.9% with a current price of $0.68 per unit, and Stellar with 9.5% of decrease and a total price per unit of $0.33.

To sum up, it results evident that now there are more features making both coins differ from the other than what it made them comparable at the beginning. However, both are excellent options in the market, and without any doubt, we could be seeing them exponentially growing in the near future.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Chart courtesy of Wikipedia Commons

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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