Stellar (XLM) was founded in 2014 by Joyce and Jed McCaleb and emerged as an alternative to asset transfers. One year after the launch of Stellar, Lumens, the system’s cryptocurrency, was launched.
Stellar (XLM) is a distributed and open-source payment system. Its main purpose is to provide interbank international asset transfers. When international asset transfers are made through banks, they are useless in terms of both time and expense. With Stellar (XLM), the goal is to make these asset transfers fast and with low fees.
Stellar (XLM) makes these transfers with decentralized servers and distributed ledger technology. It is transferred much faster than Bitcoin and Ethereum systems.
Although Stellar originated for the purpose of asset transfer, there is also the possibility to create and execute smart contracts in the multi-layered Stellar system. Thanks to this facility, new tokens can be generated and transferred on the Stellar network.
What is the Difference Between Ripple (XRP) and Stellar (XLM)?
Both Stellar and Ripple systems set out to make asset transfers fast and cheap. When Ripple launched in 2012, its aim was to rival major money transfer companies. It aimed to be an alternative to real money transfer instruments. After McCaleb, one of the founders of Stellar, had problems with Ripple management, he left the company and founded Stellar.
Ripple has a more centralized structure than Stellar. All Ripple transactions and balances are in-house and released by the company.
While Ripple aims to partner with major banks, exchanges and payment companies, Stellar aims to bring this service to people who cannot access banking services.
While Ripple has a for-profit policy, Stellar operates as a non-profit foundation.
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