Stellar (XLM) and Ripple (XRP) were both created by Jed McCaleb, but they serve different purposes. Ripple focuses primarily on banks and financial institutions, enabling interbank transactions and cross-border payments. In contrast, Stellar is designed for individuals and businesses, emphasizing financial inclusion and providing services to the unbanked.
Another key difference is Stellar’s decentralized, open-source nature, whereas Ripple has been criticized for being more centralized. Additionally, Stellar uses the Stellar Consensus Protocol (SCP) instead of Ripple’s Proof-of-Correctness consensus, which allows for faster and cheaper transactions.
These distinctions impact how each network operates and influence the XLM price compared to XRP.