Kindly Note: This article has been written by an external guest. We don’t take any responsibility for the accuracy of the information present in this article. It is a PR Post which means we have received a monetary compensation against the same. Disclaimer Here.

The most popular cryptocurrency hub in the world currently is the UAE. The states are working wonders with their crypto finances. The escalating speed of digital assets makes one wonder which one of the cryptocurrencies is worth investing in. Since the market is full of numerous options, the choices are hard to make. There is a multitude to choose from, and each comes with its own pros and cons equipped along.

So if you are in the UAE, you must be aware of Ripple and Stellar. These are not as popular as Bitcoin and Ethereum, but they are developing pace and worth considering. However, when you start looking deep, you will realize that there aren’t many exceptions to both. That is where we swipe in to help you decide, XLM or XRP, which is the better investment? So if you are planning to buy Ripple in the United Arab Emirates then read on to find out more!

Ripple – XRP

The collaboration between McCaleb and software developer Ryan Fugger gave birth to Ripple. The idea was to develop a networking platform that did not depend on severe mining procedures like Bitcoin. However, the disagreements between McCaleb led to him departing from the Ripple team.

Ripple focuses on forming a network that allows banks, asset holders and payment givers to be connected. Currently, Ripple is looking for ways to broaden its horizon beyond North America. Currently, the company has struck a deal with the Novatii Digital banking and Payment company. It aims to expand into the South East Asia remittance market.

XRP – Use Cases

The XRP / Flare airdrop of 2020 led to the XRP code being forked with the formation of the Flare Network. It’s a decentralized smart contract platform that aims to be more scalable than Ethereum’s blockchain. Although Flare and its native Spark token are not on the XRP blockchain, it still has opened wider use cases for XRP.

Another example of the Ripple use case is that of Global remittance if the company comes out unscathed from its legal battles. RippleNet can help reduce the time and energy acquired with the payments traveling from one country to another. Normally banks take a long time doing that, and RippleNet is focused on streamlining the service. This, in turn, has made XRP a popular currency in the past few years.

Stellar – XLM

Both Ripple and Stellar were founded by Jed McCaleb, and this is another thing that the two companies have in common. Stellar was founded in the year 2014 and was built on the mandate “to create equitable access to the global financial system.” Stellar is focused on providing unbanked individuals with the opportunity of sending money home without using expensive services like Western Union. Moreover, Stellar allows these users to convert their assets into a raft of varied nationally stable coins.

XLM – Use Cases

Stellar has formulated Dapps featuring alternative use cases to expand its phenomenal reach beyond payment solutions. These include the private messaging app Keybase and SatoshiPay, an online publishing Dapp.

Basic Difference between XLM and XRP Blockchain

Crypto enthusiasts around the world tend to care about Ripple and Stellar often, primarily because the mission of both companies is the same. Both want to disrupt the cross-border financial payment system.

One of the key differences in the Blockchain system of both is that their algorithms are different. Apart from that, XRP coins are deflationary, whereas Lumen coins are inflationary in nature.

Moreover, Stellar is not as centralized when compared to Ripple. Moreover, both Ripple and Stellar have different markets targeted. Ripple is focused on banks. In contrast, Stellar is focused on individuals, the unbanked individuals who belong to less-developed countries. This is one of the major reasons why Stellar likes to refer itself to as being “not for profit.” That’s because the blockchain is focused on helping rather than making profits.

Which one has better potential?

When we talk about the future potential of Ripple and Stellar, there is a huge question mark with both. For instance, RippleNet has a roster filled with top-notch partners in the financial market but does XRP have the same benefit? Ripple Labs have distanced themselves from the XRP token significantly, meaning that the asset holders of XRP have mainly raised funds that have helped Ripple’s day-to-day operations alone. Ripple Labs has 55% of the total supply of XRP, which fuels the fear of negative price action due to the centralization of the token. However, the Ripple team is working to solve it.

Stellar has a better performance in this regard; still, in 2019, the Stelar network faced 67 minutes of halted activity due to a mass outage of Stellar Development Fund nodes, thereby making people question its decentralization. Again, Stellar is working in that regard, but Ripple beats it with 168 known validators already.

Lastly, in terms of coins, XRP and XLM risk becoming obsolete if the Bitcoin lightning network comes to pass. If the advantage of speed is taken from them, they lose a major use case. Also, Stellar’s use of DApps may be lost if Ethereum 2.0 comes to the surface.

Read about Stablecoins here.


Educating people about Blockchain over Zoom and offline events. Writing blogs related to crypto and making videos explaining it.