How to compare Stellar with other blockchains
Compare Stellar with other blockchains on consensus, fees, settlement, assets and contracts, then check live network data on official dashboards.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Stellar uses the Stellar Consensus Protocol, not proof of work or proof of stake.
- XLM pays network fees on Stellar.
- Stellar has a built-in exchange and Soroban smart contracts.
Comparing Stellar with other blockchains means checking the same features on each network rather than trusting one figure. This guide gives you five criteria and points to current network data. A browser and notes are enough.
What you need before you start
Stellar is an open-source decentralized network that Jed McCaleb and Joyce Kim co-founded in 2014, and it is separate from Ripple. Its stated goal is quick, inexpensive transfers of value between currencies and assets. First, check what each network uses for money and for fees.
How to compare Stellar step by step
Use the same order for every network so your notes line up. Mark anything you cannot confirm.
- 1List your criteriaWrite down consensus, fee model, settlement speed, asset support and smart contracts.
- 2Read the consensus rulesStellar uses the Stellar Consensus Protocol, where nodes trust groups of other nodes. Bitcoin uses proof of work and Ethereum uses proof of stake.
- 3Compare fees and settlementStellar charges its fee in XLM and says a payment becomes irreversible within seconds. A low fee does not prove fast finality.
- 4Compare assets and contractsStellar carries issued and tokenized assets and runs smart contracts on Soroban. Ethereum carries tokens with smart contracts.
- 5Study the DEX and anchorsStellar has a built-in exchange, and anchors issue tokens for outside currencies. Ethereum trades through smart contracts.
- 6Check live network dataCheck Stellar's official dashboards and block explorers, and note the date of each figure.
What to do after comparing
The IRS treats cryptocurrency as property. Buying XLM with US dollars is not taxable, but trading it for another crypto, a stablecoin included, or paying with it can be. Keep records of each payment and trade.
- Save the date and time.
- Record the XLM amount and its dollar value.
- Keep the transaction ID and the wallet addresses.
Frequently asked questions
Stellar keeps a public ledger, and its stated goal is moving value between currencies and assets.
Yes, through a platform called Soroban, while Ethereum runs contracts on its own virtual machine.
XLM pays network fees and trades on the network's built-in exchange.
