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What is the main difference between Stellar and Ripple?

stellar and ripple protocols consensus


The main differences as of today:

  • Both Ripple and Stellar  are open source protocols. Ripple was created and is supported by Ripple Labs , a for profit company, while Stellar has been created by the Stellar Development Foundation, a not for profit, and it is backed by Stripe, a for profit company. Both organizations (RL and SDF) fund their operations with their native currency (XRP and STL respectively). RL also has venture funding.
  • The core technology of Ripple and Stellar has been mostly created by Ripple Labs (information source: GitHub). Stellar is a fork of Ripple. The Stellar Development Foundation has cloned Ripple's codebase and changed the currency supply. Ripple's native currency is limited to 100 billion XRP and no more will ever be created, while Stellar's native currency is inflationary. Stellar started with 100 billion stellars and it has a fixed 1% annual rate of new stellar creation.
  • Ripple Labs is mainly focused on on-boarding market makers, financial institutions and developers to the network. RL encourages market makers and financial institutions to join Ripple with XRP forgivable loans  (Ripple's native currency), bringing in their existing customers with them.
  • When the Ripple protocol was invented, Ripple Labs was gifted 80% of the total XRPs by the creators of the protocol and Ripple Labs' co-founders (Chris Larsen, Jed McCaleb and Arthur Britto).
  • Ripple Labs plans to giveaway about 55% of the original 100 billion XRPs to users, nonprofits, merchants, market makers and financial institutions (allocation percentages haven't been detailed). The remaining 25% of the XRPs in existence will be used to fund Ripple Labs' operations. RL works to improve the protocol, build open source developer tools (e.g. Codius, public APIs...) and promote the network among regulators, financial institutions, central banks, institutional currency traders, developers, FinTech companies and so forth.
  • The creators of Ripple and founders of Ripple Labs have different uses for their XRP allocations. Chris Larsen - Ripple Labs' co-founder and CEO - holds 9 billion XRPs and he plans to donate 7 billion to an independent foundation created to support underbanked and financially underserved people. Its name is Ripple Foundation for Financial Innovation. Jed McCaleb - Ripple Labs' co-founder, former RL CTO and Stellar Development Foundation founder - was allocated with 9 billion XRPs as well, and he has publicly stated his intention to monetize all the XRPs he currently holds (for more details about Jed's XRP sales have a look at Settlement of Jed's XRP). The other 2 billion XRPs are believed to be held by Arthur Britto - Ripple Labs' co-founder and Chief Strategist.
  • On the other hand, the Stellar Development Foundation plans to attract users to the network by distributing the STL currency in no more than 3 to 5 years. They will giveaway 95% of the initial 100 billion STL to individuals (50%), nonprofits (25%), Bitcoin holders (19%) and XRP holders (1%). The remaining 5% will be held by the Stellar Development Foundation to fund operations (2% have already been sold to Stripe for 3 million USD). The distribution of the annually created STLs will be conducted via a direct voting method similar to participatory budgeting. The Stellar Development Foundation expects users in the network to vote for the allocation of part of the new STLs to the Stellar Development Foundation.
  • For a more in depth comparison of the core technology go to: Stellard compared to Rippled.

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