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Compare alternatives to Stellar Lumens: Three top competitors
Your guide to three cryptocurrencies like Stellar Lumens and how they compare to XLM.
Stellar is a distributed payments network designed to provide faster and cheaper cross-border payments than banking systems currently in place around the world. Stellar is also an ICO platform and a decentralized exchange. Its native currency, Lumens (XLM), is used to facilitate multi-currency transactions and pay fees on the Stellar network.
As one of the world’s top ten digital currencies by market cap, Stellar has attracted plenty of interest among crypto enthusiasts. However, it also faces fierce competition from a number of other cryptocurrencies, so let’s take a closer look at three leading Stellar Lumens alternatives.
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At a glance: 3 Stellar alternatives
An in-depth look into 3 Stellar alternatives
1. XRP (XRP)
The cryptocurrency with the most similarities to XLM is undoubtedly XRP. Although XRP has been commonly referred to as ‘Ripple’, there are key differences between XRP and Ripple. Ripple is a US company that offers a settlement network for fast and affordable cross-border transactions. XRP is the currency used on Ripple’s global network as the bridge between the fiat currencies of the world. It allows a four-second transaction processing time, fees from 0.00001 XRP per transaction and the capability to handle 1,500 transactions per second.
If all of this sounds vaguely familiar, that’s because it is. Stellar co-founder Jed McCaleb also co-founded Ripple, but left the latter project in 2013 due to ideological differences and started Stellar in 2014. Though Stellar initially shared some code with Ripple, the two platforms now have completely different codes.
As both XRP and Stellar are top-ten market cap cryptos, they’re recognized as two of the cryptocurrency world’s best-known arch enemies. However, up to this point in time, the two projects have focused their products and development on different missions and goals.
While Stellar’s aim is to expand access to low-cost financial services for all, Ripple has targeted its efforts on enhancing the efficiency of international transactions between banks and major financial institutions – and, it’s secured plenty of important corporate partnerships along the way.
Despite their philosophical differences, Stellar and Ripple are two very similar projects, so it’ll be fascinating to find out whether XLM or XRP comes out on top.
Where to buy XRP
2. OmiseGO (OMG)
Omise is a Thailand-based payment services provider that also has offices in Japan, Indonesia and Singapore. OmiseGO is a separate, peer-to-peer platform created by Omise and designed to allow for the quick, secure and decentralized exchange of fiat and cryptocurrencies by users around the world.
Built on the Ethereum network, OmiseGO offers the OMG Money Gateway as a scaling solution for Ethereum. As explained in the OmiseGO official guide:
“The OMG Network will be able to interact with Bitcoin (or Bitcoin-like blockchains) and other blockchain platforms through clearinghouses in state channels or smart contracts, as well as with digital fiat platforms and economies through collateralized fiat tokens. This, in combination with virtually unlimited scalability, will enable the OMG Network to serve essentially all global transactions simultaneously.”
The project also features a white-label digital wallet software development kit. This free kit allows developers to build their own app that enables wallet-to-wallet transactions of crypto and fiat currencies, loyalty rewards points, game credits and many other assets.
OmiseGO’s goal is to streamline transactions between payment processors, gateways and financial institutions, making it well worth investigating of you’re looking for a Stellar alternative.
Where to buy OmiseGO
3. Ethereum (ETH)
Unlike the first two coins in this list, Ethereum isn’t focused on disrupting the world’s financial systems or cross-border payment mechanisms. Instead, Ethereum is a development platform for the creation and deployment of decentralized applications (dapps). With Stellar’s network also offering smart contracts for development solutions, not to mention hosting ICOs for projects like Mobius (MOBI) and Smartlands (SLT), it can be considered a key competitor to Ethereum.
However, Ethereum as it currently stands is far and away the biggest development platform in the cryptosphere. As the first such platform, Ethereum has the early-mover advantage and has become synonymous with the creation of dapps and blockchain platforms. For evidence of this, take a look at how many of the world’s top 100 cryptos are built on the Ethereum network.
Ethereum’s native currency, ether (ETH), is second only to bitcoin in terms of market cap. However, with Ethereum’s developers currently working on solutions to the scalability problems facing the network, there could be some testing times ahead for this popular dapp platform.
Where to buy Ethereum
Looking for more Stellar alternatives?
These are just a few of the cryptocurrencies with similar attributes or goals to Stellar. To search for more digital coins and tokens with similar features to XLM, check out our comprehensive guide to altcoins.
Image source: Shutterstock
Disclosure: At the time of this writing, the author holds ADA, ICX, IOTA and XLM.
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