Key Differences Between Ripple and Bitcoin
Cryptocurrencies and Blockchain are an indispensable part of our modern life, and people often get lost in the diversity of digital assets that are present in the market. Bitcoin is still the most popular cryptocurrency. However, Ripple is on the rise as well, as it keeps gaining popularity among cryptocurrency enthusiasts and investors all over the world.
Ripple coin vs bitcoin
So, how does ripple differ from bitcoin, what is the difference between ripple coin and bitcoin, and what are their advantages and downsides? Let’s talk about each of them in greater detail.
The aims of development
Bitcoin was designed as a digital currency with the aim of paying for goods and services without having to go through a third party payment company. Ripple, on the other hand, was developed for payment networks and banks as a currency exchange payment settlement, and money transfer system.
The primary purpose of Ripple was to build a system of direct asset transfers in real-time which would be much more inexpensive transparent, and secure compared to the existing payment methods, like SWIFT payments.
Who are the developers?
A group of enthusiastic developers maintains Bitcoin. It is a decentralized system, and its activities aren’t overseen by any government, bank, or third party. It was created by a person or a group of people who called themselves Satoshi Nakamoto, and whose true identity remains a mystery till today.
However, Ripple is developed by an official company founded in 2012 with set goals and investors called the Ripple company. The Ripple company had offices in Australia, Luxembourg, and the UK in the years 2015 – 2016.
Bitcoin is a currency which is based on the Blockchain technology using mining (proof-of-work protocol), and Ripple uses an iterative consensus ledger and authenticating servers network along with XRP tokens.
The Ripple network is run by a series of independent servers comparing their transaction records continually. A new ledger of Ripple is generated each second.
This is the main difference between bitcoin and Ripple, as Ripple is not designed to be mined at all. Bitcoin miners usually get compensations in the form of new Bitcoin.
XRP tokens were initially premined at a fixed amount of 100 billion, and just 38 billion of the coins are available in the market, the rest are in Ripple labs and can be released periodically. Unlike Ripple, Bitcoin is not pre-mined at all, and the maximum supply is capped at 21 million.
Issuance of coins
Bitcoins are disseminated all over the globe. Ripple owns 60 percent of XRP coins. When compared to Bitcoin’s price, Ripple’s price is minimal in number.
The distribution and movement of XRP tokens can be tracked on the Ripple Charts website.
On average, it takes 10 minutes to confirm Bitcoin transaction, while it takes 5 seconds to confirm XRP transaction.
Difference in utilizing
Bitcoin is used as a medium of exchange of value. Ripple’s purpose is to use it for other currencies or commodities transfer such as gold or oil over the network.
While Bitcoin requires centralized exchanges, the Ripple network is a totally decentralized currency exchange. It implies that users are meant to exchange XRP for USD; it’s possible to do that within Ripple network without any third parties intermediaries.
So if someone wants to sell their Ripple for US dollars they can do that within the network without having to go through a third party.