When comparing first generation cryptos with the new generations, three things come into mind; the underlying technology, real life use cases and the actual coin value proposition. The modern consumer is riddled with a myriad of problems and that cannot be remedied by a one stop solution provider. However Stellar (XLM) and Ripple’s XRP appear to have been brought to compete by fate.
Stellar and XRP play in the same currency transfer league but their market entry routes are different despite the fact that they are competing for the same gateway to reach out to the to the banking service deprived global audience. Their “decentralized offerings” have been challenged with many XRP critics saying the system is not decentralized. So who is set to run the cross border money transfer show?
Stellar (XLM) Leads in Transparency
Stellar and Ripples’s XRP specialize in the banking sector with XRP having an upper hand since it entered the market earlier than its competitor, XLM. The idea behind Stellar is to offers a more transparent system that the banking stakeholders can ride on.
To date, Stellar has maintained a clean sheet at a time when XRP is embroiled in a myriad of lawsuits and this has slowed down its growth with investors preferring XLM. This has brought the Ripple coin to the limelight but on a negative line. The migration of investors from XRP has benefited Stellar and this has left the Ripple community divided.
Stellar (XLM) SEC’s Soft Spot
The entire Ripple outfit appears to keep rubbing the SEC the wrong way and a clarification has never been made on whether it is a security or not. This has delayed further adoption giving Stellar enough time to eat into its market. With the many rules and regulation hurdles for XRP to overcome, for Stellar is it is a smooth ride.
The denial for Coinbase listing XRP and opting for XLM is a clear indication that XRP has a lot of housekeeping to take care of before it gets a listing nod. Its failure in meeting the basic Coinbase requirements and lack of transparency has fronted XLM coin as the right vehicle in the banking industry.
The tweet that silenced the Ripple and XRP supported simply said:
Today we are announcing that we’re exploring the addition of the following assets to Coinbase: Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX). https://t.co/qoECyR0V1f
— Coinbase (@coinbase) July 13, 2018.
Stellar (XLM) Partnership with TransferTo
The Ripple system at some point offered the fasted speeds in the market and used that is the reasons why users should adopt there system for all international currency transfers. However Stellar was quick to get a solution. The partnership with TransferTo was game over for XRP.
Very, very excited to see what an innovator like @TransferTo will launch on the @StellarOrg network! Welcome friends 👋💸🚀 https://t.co/RJJnRWuTmy
— Lisa Nestor (@nestorious828) July 25, 2018.
This was a major boost for Stellar since TransferTo network was already established and already gave Stellar a ready market of 70+ countries for starters. This was a good head start which saw the coin acquire a sharia law compliance certificate before XRP could blink giving the coin a seamless entry into areas where banking institutions have to be compliant with Sharia.
Parting Shot for Stellar (XLM) and Ripple’s XRP
With the current realignments and infrastructure developments on both protocols, the coins have a better future and the consumer has the final say by the end of the day. The blockchain industry is fast evolving and newer coins are setting the pace through demystifying the once complex concept on cryptocurrency economies.
If you are planning to invest on any of the two, value proposition and real life use cases should be the guide. With the volatile nature of the market, the price should not be the end goal, a stable and transparent system means a soft landing spot in the event the market crashes.