Ripple vs Stellar: Key Differences (XRP vs XLM)

XRP was designed primarily for fast, low-cost cross-border payments targeting banks and financial institutions, while XLM focuses on financial inclusion and remittances, especially in developing countries. XRP uses the Ripple Protocol Consensus Algorithm, whereas XLM uses the Stellar Consensus Protocol.

Both XRP and XLM have similar transaction speeds, with block times ranging between 3 to 5 seconds. However, XRP supports a slightly higher throughput with up to 1500 transactions per second compared to XLM's 1000 TPS.

XRP is often preferred by banks and large financial institutions due to its scalability and established partnerships, making it ideal for high-volume cross-border payments. XLM, on the other hand, is better suited for smaller remittances and financial inclusion in developing regions.

XRP focuses on cross-border payments and banking solutions, aiming to streamline international money transfers for institutions. XLM targets cross-border payments as well but places more emphasis on remittances and providing financial services to the unbanked or underbanked populations.

XRP was created by Chris Larsen and Jed McCaleb under Ripple Labs in 2012. Jed McCaleb later co-founded Stellar with Joyce Kim in 2014, aiming to build a more inclusive financial network. Both tokens share a common origin but have diverged in focus and design.