#stellar is a decentralized blockchain platform created in 2014 by Jed McCaleb, one of the co-founders of Ripple. Stellar aims to facilitate fast, cheap, and secure cross-border payments, especially for those without access to traditional banking services.
Native cryptocurrency - Lumens ($XLM ) - is used to pay transaction fees and prevent spam on the network. - It is also a “bridge currency” that helps exchange different assets (such as fiat currencies or other cryptocurrencies) without having to directly exchange between them.
Decentralized Exchange (DEX). Stellar has a built-in decentralized exchange that allows users to trade assets directly on the blockchain.
Consensus Algorithm. Stellar uses a unique consensus algorithm called Stellar Consensus Protocol (SCP), which is different from Proof of Work (Bitcoin) or Proof of Stake (Ethereum 2.0). SCP is faster and more energy efficient.
Stellar provides access to financial services for those excluded from the traditional banking system. It cooperates with large companies such as #MoneyGram (for international transfers) and IBM (for projects in the field of blockchain solutions).
Ripple, the company behind XRP, was originally called OpenCoin (founded in 2012) and was later renamed Ripple Labs. However, the XRP Ledger technology that powers the XRP cryptocurrency was created even earlier, in 2004. It was initially developed as a decentralized system for financial transactions, but had nothing to do with cryptocurrencies.
One of the key developers of the XRP Ledger, David Schwartz, later became the chief technology officer of Ripple. Interestingly, he is also the author of cryptographic algorithms that are used in the security systems of Apple and Microsoft.
In addition, XRP is often called the “cryptocurrency for banks”, as Ripple actively cooperates with financial institutions around the world, offering solutions for instant and cheap international payments. However, this also causes controversy, as many in the crypto community believe that XRP is too centralized, which contradicts the original philosophy of decentralization of cryptocurrencies such as Bitcoin. $XRP #Ripple #xrp #opencoin #RippleXRP