Understanding the Differences Between XRP and XLM

When it comes to understanding the world of digital assets, two names often come up in the same breath: XRP and XLM. However, whether these two digital assets are the same or different is a matter of perspective. In this article, we will delve into the specifics and clarify the relationship between XRP and XLM.

Origins and Forks in Crypto

Both XRP and XLM share an interesting history. To understand their differences, it's essential to first look at their origins. XLM, which stands for Lucid, is a fork of the XRP codebase. However, the story is more complex than a simple fork. XLM was born out of a split between two co-founders of Ripple, Ripple's original digital asset and the XRP Ledger.

The rift began when Chia (Currano) and Jed McCaleb, one of the original founders, had a disagreement. Chia left Ripple and co-founded the Stellar Development Foundation, resulting in the creation of XLM (Stellar Lumens). The project, known as Stellar, aimed to achieve similar goals but with a different approach and community.

Similarities and Differences

Despite the shared foundation, XRP and XLM have evolved to pursue slightly different goals. Both serve the purpose of facilitating payments, but their strategies and target markets differ.

Similarities

1. Payment Network: Both XRP and XLM are designed as payment networks to facilitate the efficient movement and settlement of money and value.

2. Efficiency: Both assets are known for their rapid transaction times and low fees.

Differences

1. Target Market: One of the primary differences between XRP and XLM lies in their target markets. XRP is often described as targeting central banks and multinational companies for its customer base. This suggests that XRP is more suitable for large-scale and institutional transactions.

2. Use Case: On the other hand, XLM has a broader appeal, targeting individual users for peer-to-peer transactions. This makes XLM more accessible and user-friendly for everyday use.

Technical and Codebase

From a technical standpoint, while XLM is a fork of XRP, the codebases have diverged significantly over time. While non-technical users might find them similar, developers and security researchers can identify distinct differences in the underlying code.

Conclusion

So, is XRP and XLM the same? The answer is neither a simple yes nor no. XLM is a fork of XRP but developed by a different team with different values and goals. Both serve similar purposes in the payment landscape but are tailored to different markets and users.

Understanding these nuances can help you make informed decisions when investing in or using these digital assets. Whether you are interested in institutional payments or peer-to-peer transactions, the choice between XRP and XLM depends on your specific needs.

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References

[1] Stellar Development Foundation. (n.d.). Retrieved from

[2] Ripple. (n.d.). Retrieved from