Ripple | $XRP | vs. Stellar Lumens | $XLM |


Hey, guys. So today’s video is about me comparing
and contrasting Stellar and Ripple, but I would like to start
with some housekeeping first. As always, my videos should be
used for educational purposes and should not be taken
as trading advice. Second, I have started
interviewing different teams as a way to monetize my channel. I would like to say that all
of the questions that I ask I have either sourced
from the community via asking them on
Twitter or Reddit or I’ve done my own research and come up with questions
that I think are interesting. I screen the projects before I
agree to work with the team because I want to make sure that they have an active group
of people working on it, that there’s a Roadmap,
and that there’s a goal. I don’t just pick any
project that comes my way. That being said, those are the only videos that
I’m receiving reimbursement for. All of my Crypto 101 or
my Coin Review stuff is done on an interest basis which I’ve been pretty transparent
about from the beginning. I’ve started using polls as
some of you have noticed to pick out projects that
people are more interested in or stuff that I think the community is
going to really want to hear about. If anyone ever has any
questions about what I do, about the channel,
about my projects, anything at all, feel free to
come to my Discord and ask. We have a very friendly
group of people in there. You can also message me on Twitter or tweet me just in general because
I’m on there pretty frequently. Okay, not that that’s over
with, let’s get started. Ripple Labs was formed
by Jed McCaleb in 2011, and it’s a financial tech company that sells payment software
to banks worldwide. Their goal is to create a network
in which payments can move around fast, secure, cheap, and globally. The cryptocurrency XRP is
different than Ripple Labs. XRP is the native asset that
runs on the Ripple network. When we think of Ripple, we often think that Ripple
and XRP are interchangeable and that’s not the case. Ripple is actually
completely separate from XRP and that kind of
causes some confusion. Ripple created XRP in order to
be able to deliver its products more efficiently to its customers. However, it should
be noted that XRP is not actually required to
use the Ripple platform. Nor is it required by banks if they
decide to choose to use Ripple. Ripple uses the Ripple Protocol
Consensus Algorithm or RPCA and runs on a permissioned ledger
where Ripple because of regulations has to maintain a unique list of all
of the active nodes on the network. Anyone can start a validator, and anyone can choose any
validator that they want, but the unique node list by Ripple
is considered the standard. Transactions are
grouped into sets, and each set is voted
on by the validators. Each set must go through four
sequential rounds of voting. Let’s talk about their flagship
products a little bit. Their first product is xCurrent. It gives banks the ability to
move money across borders, and it runs on RippleNet
the Ripple blockchain, but it does not use XRP. Banks like this software because it allows them to save money
and time when sending payments. The next one is xRapid, and this helps banks
improve their liquidity when moving into emerging markets and this is actually the only Ripple
product in which XRP is required. Banks might like this because as mentioned before
it helps improve liquidity, but they may not like it because it’s introducing a
little bit more of an unknown which is the volatility
of XRP in the market. xVia is the final one, but
it’s still in development. It’s scheduled to come out
somewhere in early 2018, and apparently, it’s
pretty similar to xCurrent only instead of allowing banks
only to use the platform it allows other entities to use
the platform and send funds. However, this one also
doesn’t require XRP. Ripple touts an impressive
100+ banking institutions that are working with them but I’d like to be clear those 100+
are working on the platform xCurrent which as stated before doesn’t
require the use of XRP. There’s a list of about four or five
cooperating partners that use xRapid which means there’s only about
four or five cooperating partners that are actually utilizing XRP. Ripple Labs is a very
successful company but a lot of people associate that
success with assumed success for XRP but they’re two very
different things. Let’s move on to Stellar. So Stellar was founded in 2014
by none only but Jed McCaleb. Yes, the same Jed McCaleb
that founded Ripple. He’s also the same guy that
founded Mt. Gox in 2010 but then he I guess
jumped ship in 2011. Originally, Stellar
was a fork of Ripple, but it was actually named
Stellard at the time. One of the co-founders, Joyce Kim, said that she found an issue
in the Ripple protocol and this made the Stellar Development
Foundation create a brand new code for the Stellar Network
called Stellar Core. That came with a new consensus
algorithm and a new code. And they renamed the
project just Stellar. It went live in November 2015 which means the argument
that Stellar is just a fork or just a clone of Ripple
is no longer accurate. Stellar is an open source
protocol for exchanging money. And where Ripple wants to target
financial institutions as its user base, Stellar just wants to target,
well, individuals as its base. Lumens, or XLM, is the
native asset of the network. It can also be sent very
quickly with very low fees. Lumens are necessary to
use the bridge network to conduct transactions
through multiple currencies. Rather than Proof of Work, Stellar uses SCP or the
Stellar Consensus Protocol. This is an evolution of the Federated
Byzantine Agreement or FBA. Stellar is based on a
quorum, not a block. The protocol uses
quorum or quorum slices which are set nodes that are
reached to come to an agreement. The quorums securely reach consensus
by exchanging signatures. So let’s cover some similarities. The first and most obvious one is both projects were
founded by Jed McCaleb. The platforms were
created as a bridge to help utilize
multicurrency payments to either individuals
or institutions. Both projects are very
fast with very low fees. They are both also
a premined coin, and they have a circulating
supply of 100 billion. Some differences. Ripple states that they can
handle 1500 transactions with 4 transactions per second. Stellar states that they can handle
1000 transactions per second, but they’ve tested up to 3000 and
have not run into any issues. They also validate transactions
in three to five seconds. Ripple allows freezing of
currency that one has issued, and as far as we know, Stellar
does not support that. Stellar is also inflationary with 1% of the coins
being created yearly and all of the fees
being recycled. The network also collects a base fee
for each operation in a transaction. Each week these funds get
put into an inflation pool, and the protocol distributes these
Lumens out to account holders. Ripple destroys fees which means the total
number circulating supply of Ripple over time
is going to decrease. A big controversy is Ripple
is criticized for Ripple Labs holding 61% of the total
Ripple in circulation whereas Stellar states
only 5% of Lumens are held by the
development foundation and those are used for
operational costs. What’s pretty neat is there’s a website that you can see the distribution of Lumens live, and I’ll leave a link
in the description. One major argument over Ripple
holding all of those coins is they’ve put 55
million into escrow which means they can’t just up and
sell it and saturate the market. They stated that they take out one
billion a month to fund the project. Stellar allows you to
choose whom you trust which allows a little bit more
freedom and decentralization whereas Ripple’s
network is privatized which means not everybody can
participate in the system unless they are on the
list of trusted nodes. The protocol does not allow you
to choose who you want to trust and although the network
may have a lot of nodes, most of those nodes are backed
by a node on the Ripple network which means it’s
controlled by the company and thus it’s not decentralized. I think Ripple has realized that this is a cause for
concern for the community because they have stated that they’re going to try to move
to a more decentralized node setup, but I’m not entirely certain
how that would work. To me, one of the major
differences that stuck out was the fact that Lumens are needed
for the Stellar network to function whereas the majority of the Ripple
Labs products don’t require XRP. The argument about decentralization
gets pretty heated, too. I’ve seen it happen on Reddit and
I’ve seen it happen on Twitter. The whole Ripple Labs holding
60% of the coin thing doesn’t really look
that fondly upon them. An issue I see with both projects that could cause a little
concern for people is that both were founded by Jed, and I don’t mean this
negatively as him as a person, obviously, I don’t
know him personally, but his history within
the crypto space could cause people to see these projects
in a bit more of a tainted light. I assume no matter what I do here I’m
going to catch flack for this video. I really did do my best to come
up with very unbiased information to compare and contrast and try to find that defining line between what makes them
different projects because it’s something that I
certainly didn’t understand and I definitely wanted
to find out on my own. As usually, I want to thank
you guys for watching. If you haven’t subscribed yet, you should hit the button
wherever it is below and do that. I’m always very appreciative of all
the support I get from you guys. If anybody wants
to comment on this or tell me why they disagree
feel free to jump on my Discord. As always, you can check
out my Patreon account if you want to
support the channel. Never expected but
always appreciated. Thank you guys for watching,
and I will see you next time.

100 thoughts on “Ripple | $XRP | vs. Stellar Lumens | $XLM |”

  1. Great video as always, a review of Basic Attention Token (BAT) would be interesting, their BRAVE browser is fast, secure and solves a much need fix with AD trackers, phishing malware and speed…..Did I mention it's FAST!!!

  2. Please, make review about Etn web wallet hack on 13th of February. Many people were hacked, and nobody of electroneum team even trying to help us. https://github.com/electroneum/electroneum/issues/143

  3. Ripples best product utilizes XRP, so it's misleading to say that "a majority of Ripple's products don't use XRP". It is also just 3 products we are talking about here.

  4. Your body language doesn't reflect that you like ripple at all, If you pay attention you are way more comfortable speaking about stellar.

  5. Wasn't bitcoin at $19783 on dec. 17, 20177? Now it's under $9600?
    The other crypto's seem to be following bitcoin's foot steps and getting stagnant or going down in price?
    I wonder if the cryptos mania is starting to go by the wayside?
    If you are pumping cryptos for a living I would suggest you look for alternative careers?

  6. there is no good reason for banks to use XRP, it is volatile asset. why would they transact with volatile assets. conclusion = xrp useless

  7. Ripple strategy is to get in with x current with the banks ect… and then offer them incentives to use xrapid xrp! They know what they're doing.

  8. For the most part this was a very informative video. How ever when you downplay how many institutions are using xrapid (4-5) you fail to mention how large these companies are.
    Secondly the money that our community spends ("crypto purists") is nothing compared to the spendinginvesting power of large institutions and companies…
    We the small people invunsioned the internet and made it happen, then large companies got involved and made it a money making machine whether we liked it or not.. The same will happen with ripple or what ever coin (s) the big players get behind. Remeber when the internet was going to be free and only used for good????

  9. CryptoCandor, The reason banks do not want to buy & use XRP is, they cannot legally fractionally reserve ratio deposit XRP into their accounts (bank credit) and lend the rest out like they can with dollars & national currencies. As you have said – banks that use X-current will only send dollars and other national currencies. Also Profits made buy ripple's X-current will not give XRP more value and core Ripple owners will not use profits to buy more XRP as they already own so much of it. Any X-Current profits will be used to pay Ripple share holders (owners) staff and to keep the network going & up to date.

  10. "Ripple versus Stellar", yet in the video u state they are going after different markets. Banking Institutions for Ripple and more General for Stellar. Seems the main connection between the two is the Founder.
    It was fun to watch your frowny-face when talking about Ripple and smiley-face for Stellar.

  11. Very impressed with the way you summarised and presented the information!
    "… Hit the button wherever it is below…" 👇👇👇
    I found the subscription button and hit it… 😜

  12. FYI, there's actually 9 companies using XRP/xRapid at the moment. Check out the live google sheets for an up to date list.

    http://rppl.info/

  13. First time watching your vid. Really enjoy your fact based analysis presented in an unbiased manner! You have a new fan. Subscribed and notifications.

  14. I just stumbled upon your channel..looking for a Neo video… . I have to say.. Presentation skills are excellent… Keep up the good work!!!!

  15. Ok… so I am a huge fan of Jeb Mccaleb and his vision. I like Ripple , but I like Stellar Lumens more, a lot more.. this was by far the best explanation I've heard yet about the two company's. Great work, great channel.

  16. Sorry but you lost all credibility when you said "Ripple created xrp…". That's completely false and clearly indicates you haven't done your research.

    I watched a little further and you've stated Ripple can freeze funds. That is 100% false and an outright lie. This video is definitely FUD against xrp and shilling for xlm.

    Also why not mention the fact that xrp is being used or tested by Western Union, Moneygram, Mercury FX, Flash fx, Cuallet? Xrp has the adoption whereas xlm simply does not.

  17. Buy & HOLD both Stellar XLM & Ripple XRP.
    Problem Solved. Both will succeed. Both have real use cases. Both have strategic partnerships. etc……..

  18. Intelligently thought out, great video. Keep up the great work and I look forward to seeing new content in the future! 🤙🏻

  19. Let's put it this way. Payments through blockchain using any sort of crypto is subject to volatility. Have said that, I would put my money on Ripple because they have real relationships with real institutions. Considering that cryptocurrency is still at its early days and the fact that cryptos will most likely not disappear, there can only be one way for cryptos to survive and flourish in this emerging market. That is being somewhat centralised and scrutinised by official bodies. It cannot be anarchy forever and that is a fact. Being the case, I believe Ripple offers what no other crypto is offering right now. Which is a long term hold. Xcurrent is their flagship service but Xrapid can be adopted as an upsell or add-on.

  20. OmiseGO OMG is your only real chance to become millionaire in December this year.
    The only, first and foremost cryptcurrency sanctioned by a government (Thailand) in this planet.

  21. New to your channel and i love it, but i want to commend you that you really do a good job and your research is pretty thorough. also its a clean channel so i can listen to with my family around. Keep up the good work and i think your channel is going to grow in popularity. Im now a subscriber. By the way can you do something on EOS?

  22. Stellar foundation only holding 5%?! Wrong.
    https://ambcrypto.com/single-wallet-address-holds-12-million-stellar-lumens-xlm-worth-4-billion/

  23. Classy Articulated smart Crypto Lady , Subscribed !
    Keep up with the good work and thank you for your detailed research

  24. Stunninggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggg

  25. The only thing that I'm slightly worried about XLM is that it's inflationary. It might not go up in value as much if more coins are being made. That's why bitcoin went through the roof cuz there are barely any coins. So it does make me wonder, but honestly I have no clue if I'm right about this

  26. ''Freezing of IOUs''' should be expanded on! It's deceiving to those that are unfamiliar to the fact that any Ripple wallet can issue their own ''currency'' and the wallet that issued them, can also freeze them. Doesn't work for XRP though but because you've not stated it… deceiving.

  27. Excellent job with the video. Don’t be afraid of calling something terrible if it is. That’s why people watch to get the facts and your honest opinion. If you can stop worrying about what people think, I believe you will be a YouTube star soon.

  28. This is a great explanation thank you. I did know a lot of those facts already but thank you for this resource. So I can refer to it in the future. What is your favourite crypto in the end?

  29. IBM Hyperledger has chosen XLM as the token. They are already talking with central banks to tokenize on the Hyperledger network. XLM would be used for these banks to exchange. XRP is a centralized mess.

  30. Ripple/XRP cannot freeze your funds, just read their codebase, this is common FUD https://ripple.com/build/freeze/

  31. Wow… you miss so many points about XRP. Either you did not research enoughor you want to spread bs. Just one example: XRPs volatility… in 4 seconds settle time?!

  32. yeah so… how do ripple will succeed in its primal mission, to eliminate nostro/vostro account without using xrp? … Xcurrent and Xvia CAN use XRP. Study more before doing videos please

  33. ►Patreon:
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  34. well done. I've done a lot of research on xrp and since you came to the same conclusions as me, it's nice to see you compare it to stellar, which I didn't know much about.

  35. Didn't know about Stellar Inflation before this comparison so I had to look it up and do my own research:

    in short – the minimum required amount of stellar lumens to be rewarded the inflation is 52,500,000 as of this comment, any amount less receives zero inflation

  36. You said “You can also message me on Twitter.” I just checked your twitter to ask something but messaging is not open.

  37. Your are very good at making video, true pleasure to listen and watch! well sumarized and ELI5, I really appreciate +1 // Hello from France 🙂

  38. You explained that very well .But because i know little anyway i am still confused .
    So financial institutions will mostly not use XRP ?

  39. Numbers wise and MC wise, Xlm is the better choice in terms of returns in the coming years. Xrps MC is way too high, youll 10x if u sell at the right time. Where other coins will be giving 30, 50, 100x. Mine as well buy only btc rather than xrp…

  40. Why would anyone buy xrp when xlm has the low MC that it currently has. Thats like buying into a already matured market as compared to investing in an emerging market. Its no contest. XLM if you have a brain in your head

  41. I really don't care where bitcoin is going, where crypto world is going. I just wanna watch you like this forever. you are so adorable to watch. So cute 🙂

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