Are Ripple Competitors Of Stellar?

This may sound like a silly question however, the co-founder of Stellar Jed McCaleb spoke out in a recent interview saying that he doesn’t believe that Ripple are competitors to Stellar and that they don’t even pose a threat to the company. Speaking to journalists that attended the Crypto Finance Conference held in California last night, McCaleb shared his vision for Stellar and where he sees it going as well as outlining his aforementioned views on Ripple. In the context of a discussion on permission blockchains and public, McCaleb said:

“In the future there won’t be so much of a divide on these two things… it will be similar to LANs which connect to the larger internet… permissioned chains won’t be able to operate fully as blockchain unless they can interest with permissionless elements outside of the permissioned group.”

McCaleb went on to say:

“This is what Stellar will give you, the ability to interact with everyone else.”

This implies that blockchains with permission or private blockchains such as Ripple may end up leveraging technologies such as Stellar with other technologies privately used. Specifically discussing Ripple, McCaleb stated that while the technology had some overlap in capability with Stellar:

“The world of payments is super large, so I don’t consider ourselves competitors with either of those [Ripple and establishment payment such as Visa. There is space for many different players.”

Back in May, it was announced that Stellar and IBM were going into a partnership and many analysts are now seeing Stellar as a leading challenger to become a global leader in blockchain-based borderless payments. A statement by eToro back in August said:

“Fees are so incredible low and the total supply of coins is so incredible high, the velocity of the token is virtually insignificant, meaning there is very little economic case for the tokens to rise in value in the near future.”