Difference Between Cardano and Stellar (With Table)

Cryptocurrency is a virtual currency used to buy goods and services online. The cryptocurrency uses blockchain technology that maintains a distributed ledger, ensures the security of payments through cryptography, and builds trust among the nodes without any mediator. Cryptocurrency investors also play an important role in blockchain technology. The two cryptocurrency investment platforms are Cardano and Stellar.

Cardano vs Stellar 

The difference between Cardano and Stellar is that Cardano allows the users to make transactions only using native cryptocurrency ADA, and build secure decentralized applications, while Stellar allows the users to make transactions globally in any form. Cardano uses Proof-of-stake consensus mechanisms, while the stellar platform uses its stellar consensus protocol to validate the transactions.

 The Cardano is an open-source platform for developing secure decentralized applications and transact currency using ADA tokens. The Cardano runs both permission and permissionless blockchain. The Cardano supports only Cardano ecosystem wallets like Daedalus and Yoroi. It increases scalability, security, governance, and interoperability in decentralized applications. It requires KYC for making transactions.

On the other hand, Stellar is also a decentralized platform operated by the non-profit organization Stellar foundation that allows a cheap and secure way to transact money globally. The stellar run the only permissionless blockchain. It aims to reduce poverty and provide free lumen tokens to begin transactions. The lumens can be converted to any currency through cryptocurrency exchange platforms like LiteBit, Bittrex, and others. 

Comparison Table Between Cardano and Stellar

Parameters of ComparisonCardanoStellar
FoundedThe co-founder of Ethereum-Charles Hoskinson is the founder of the Cardano project and launched in September 2017.Joyce Kim and Jed McCaleb, the co-founder of Ripple, founded Stellar and launched it in 2014
Type of blockchainIt runs both permission-based and permissionless blockchainIt runs only permissionless blockchain.
Consensus mechanismProof of stakeIt uses its stellar consensus protocol
WalletsIt uses only Cardano ecosystem wallets like Daedalus and YoroiIt uses third-party wallet applications and the wallets of the Stellar ecosystem.
TokenIt uses ADA tokens for transactions.It uses Lumens for making transactions.

What is Cardano?

Cardano is a proof-of-stake, open-source blockchain platform that uses other technologies to increase security and sustainability in decentralized applications. The Cardano project was started in 2015 but released in the market in September 2017. ADA (Ada Lovelace- a mathematician and first computer programmer) token is used in the Cardano network to send and receive transactions.

The main goal of Cardano is to improve scalability, interoperability, security, and governance in financial systems. The Cardano tokens are stored only in Cardano wallets named Daedalus and Yoroi. The contributors of the Cardano project are a Cardano foundation- a Switzerland-based company that promotes Cardano technology, IOHK- a blockchain engineering company that builds Cardano project, and Emurg- an entity that encourages to build applications in the Cardano ecosystem.

The Cardano platform runs both permissionless and permission-based blockchain. It can be used to convert into fiat currency through LiteBit, Binance, Bittrex, and other currency exchange platforms. The Cardano platform also maintains the anonymity of the users when making transactions, but the KYC is used for initial transactions. It is the first peer-to-peer network that works on scientifically tested theories. 

What is Stellar?

Stellar is an open-source, decentralized platform where users can create, send, and trade their bitcoins or any form of money. Stellar uses blockchain technology to synchronize transactions. It is must faster, secure, and cheaper than other blockchain-based systems. It was launched in 2014 by Joyce Kim and Jed McCaleb, the co-founder of Ripple.

Its main aim is to increase the potentials of poor people by connecting them to low-cost financial services. The lumens in stellar are transferred publicly, but the user identities are kept anonymous. It requires KYC of users to initiate transactions, controls the access to accounts through multi-signature accounts, and uses a time-locked mechanism for escrow agreements.

In short stellar is referred to as XLM, and lumens are used to make transactions. It is supported by the non-profit organization stellar.org in the US that develops tools to distribute the goods in the stellar network. The organization distributes the lumens for free in different ways, such as 50% to the individuals when they signup for the program, 25% to the partners who participate in the partnership program, 20% to the bitcoins holders, and 5% is used by the organization for operational expenses. 

Anyone can join the stellar network without any intermediary. Lumens are directly converted to fiat currency through LiteBit or Kraken cryptocurrency exchanges. Lumens are used only to pay promotional stellar stickers, breakfast, and sprouts, but they are not used as a transaction medium. 

Main Differences Between Cardano and Stellar

  1. Cardano is an open-source, decentralized platform that is built using scientifically tested theories that use proof-of-stake consensus mechanisms to validate the transactions, and Stellar uses stellar consensus protocol to validate the transactions.
  2. Cardano was launched in September 2017 by the co-founder of Ethereum and is similar to Ethereum, Charles Hoskinson, while the stellar was launched in 2014 by Joyce Kim and Jed McCaleb, the co-founder of Ripple, and is similar to Ripple.
  3. Cardano aims to improve security, interoperability, and governance in decentralized applications, while Stellar aims to provide a cheap and secure platform to fight poverty.
  4. Cardano supports both permission and permissionless blockchain, while Stellar supports permissionless blockchain.
  5. Cardano uses only ADA tokens for transactions, while Stellar uses Lumens tokens for transactions.


Cryptocurrency is the fastest growing technology that provides a secure means of online transactions without intermediaries with the highest returns. There are many platforms available to convert cash into cryptocurrency and start trading. The Cardano and Stellar are open-source platforms that provide a secure, fast, and cheap source to do trading. Both platforms are used as smart contract platforms to make transactions. The Stellar platforms support many third-party wallets and ease the conversion of money. Both the platforms provide secure and fast transactions. 


  1. https://www.stellar.org/learn/intro-to-stellar
  2. https://cardano.org/
  3. https://blog.elitex.ir/wp-content/uploads/2020/06/Cryptocurrencies-and-Blockchain.pdf
  4. https://www.researchgate.net/profile/Sebastian-Lahajnar/publication/344189540_The_correlation_strength_of_the_most_important_cryptocurrencies_in_the_bull_and_bear_market/links/5f59f3de92851c0789587667/The-correlation-strength-of-the-most-important-cryptocurrencies-in-the-bull-and-bear-market.pdf
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