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Review on Stellar by Jessica Lemann
The Stellar project plans to bridge the gap between cryptocurrency and…
The Stellar project plans to bridge the gap between cryptocurrency and centralized financial institutions or banks. It has already made several large strides towards this goal, Stellar Lumens ATMs are expected in the near future, and IBM is already using Stellar Lumens technology. This is a huge step not only for the Stellar project but also for the cryptocurrency industry in general.
Pros
- In comparison to the Ripple project, anyone can theoretically validate the transactions on the Stellar blockchain ledger. There are no restrictions. The Ripple ledger meanwhile is validated by a select group of validators. This decreases the decentralization aspect of the Ripple blockchain and effectively reinforces the very power structures of big banks that non-profit Stellar and many cryptocurrencies seek to overcome
Cons
- Stellar is a decentralized currency, while Ripple is a centralized currency. While true cryptocurrency ideologues prefer the Stellar project over Ripple for precisely this reason, the clients that the two projects cater towards (namely banks and other financial institutions) will appreciate the stability that comes with a more or less centralized system like Ripple
