🔹 1. Decentralization

• XLM (Stellar) is generally considered more decentralized.
  • Uses the Stellar Consensus Protocol (SCP), which is federated and open-source.
  • Anyone can become a validator; nodes choose their own quorum slices.
• XRP (Ripple) uses Ripple Protocol Consensus Algorithm (RPCA).
  • Critics argue it’s more centralized, as Ripple Labs maintains a default UNL (Unique Node List) of trusted validators.

🔹 2. Mission and Use Case

• Stellar (XLM) focuses on financial inclusion, targeting individuals, unbanked populations, and NGOs.
  • Examples: Partnerships with UN, MoneyGram, and others for remittances and humanitarian aid.
• Ripple (XRP) is more bank- and enterprise-focused, aiming to improve institutional cross-border transactions.
  • RippleNet is built for banks and payment providers.

🔹 3. Token Distribution

• XLM has a better reputation in terms of fairer token distribution:
  • The Stellar Development Foundation (SDF) has burned 50% of total supply and has ongoing transparent distribution plans.
• XRP: Ripple Labs owns a significant portion of the total supply, and this central ownership has raised red flags and led to SEC lawsuits.

🔹 4. Developer Ecosystem

• Stellar has an open-source-friendly ecosystem and offers easy tools for building on-chain apps (like your own work with Prashora and Lumenask).
  • Example: Soroban, the smart contract platform on Stellar, makes XLM more competitive in the programmable blockchain space.
• XRP Ledger also allows for development, but it’s generally seen as less active and less community-driven compared to Stellar.

🔹 5. Regulatory Clarity

• XRP has been in a long legal battle with the SEC over whether it’s a security.
  • This has affected investor confidence and listings on some exchanges.
• XLM has largely avoided such regulatory issues, giving it an edge in terms of perception and adoption.

✅ Summary: Where XLM Shines Over XRP