In this comprehensive Ripple and Bitcoin comparison article, we identify 7 key differences between XRP and BTC. Ripple Vs Bitcoin – what are the key contrasts between these coins?
CryptoToday – While the majority of the world’s population is aware of the cryptocurrency market thanks to Bitcoin, there are also thousands of other perspective digital coins.
As a matter of fact, some of them are even more functional in some sense more efficient than the primary cryptocurrency. However, given the low popularity and adoption rates, many of these unique cryptocurrencies fail to make it to the list of the top 10 cryptocurrencies 2018.
Nevertheless, those altcoins that have paved their way to the top are now enjoying the increased demand and higher market capitalizations. Today, we will look into one of these currencies in detail – Ripple. More specifically, we will analyze the topic of Ripple and Bitcoin comparison.
Ripple Vs Bitcoin Comparison
As of the moment, there are more than 1,000 existing cryptocurrencies. Many of these altcoins are the actual cryptocurrencies, while some are not exactly so.
What is cryptocurrency?
Not many people know, but cryptocurrencies have been created as a side project of another intention. The unknown creator of Bitcoin, Satoshi Nakamoto, did not even plan to create cryptocurrency. Back in late 2008, Satoshi has informed the public that he has developed “A Peer-to-Peer Electronic Cash System.” His key goal was to create something that many people have failed to invent – digital cash.
Satoshi has found a way to build a decentralized digital cash system. He managed to create a digital cash system without any central authority. This is precisely the moment of the cryptocurrency creation.
Key Differences between Ripple and Bitcoin
Ripple Vs Bitcoin: The purpose
Talking about the primary difference between Bitcoin and Ripple, it is certainly worth mentioning the initial purpose of these projects. When the cryptocurrency space has just been starting out, Bitcoin has aimed to serve as the first peer-to-peer cryptocurrency protocol.
Ripple’s essential purpose is to serve as a payment system, currency exchange, and remittance network. In addition, Ripple has built the network that includes its very own cryptocurrency XRP.
Ripple Vs Bitcoin: Cryptocurrency Status
While there are no doubts about Bitcoin’s nature of being a cryptocurrency, we can’t say the same about Ripple. Initially, the key function of Ripple was to allow secure, instant and near-zero fee global financial transactions of any size.
These transactions were intended to be applicable to any type of asset. Then, the Ripple system has designed its own network to include customer cryptocurrency XRP.
Ripple Vs Bitcoin: Mining process
Bitcoins are created via mining by the users of the network. This fact is in contrast with the way how Ripple creation has taken place. Ripples cannot be mined, and the team behind Ripple has already created 100 billion XRPs for the release.
55 billion out of the overall XRP supply will be distributed to the charitable organizations, strategic partners, and users.
Ripple Vs Bitcoin: Transaction speed
Since the Bitcoin Blockchain requires mining process, it is usually slow. We have discussed the scalability issues of Bitcoin in our previous educational article. Since Ripple does not support Blockchain network, the transactions are getting authorized faster – normally, it takes up to 4 seconds.
Bitcoin transaction can take anywhere from a couple of hours to days.
Ripple Vs Bitcoin: De/centralized exchange
In case one plans to trade Bitcoins, he/she will need to use one of the centralized exchanges. It is also possible that some of these exchanges are subject to downtimes and hack attacks.
Buying/selling Ripple can also be carried out on its own secure network.
Ripple Vs Bitcoin: Transaction fee
Coming back to Bitcoin scalability issues, the transactions on Bitcoin Blockchain usually involve fees. The higher the fee you pay – the faster the transaction will be authorized. Bitcoin transaction fees are usually paid to miners as rewards for approving transactions.
Ripple transactions also include a fee. However, the fee is eventually being destroyed, as it is also not paid to anyone.
Ripple Vs Bitcoin: Information tracking
Ripple is capable of tracking information of any kind, including the account balance. On the other hand, Bitcoin network can only track the movement of Bitcoins.
Do you have any questions? Do not hesitate to ask us in the comments section below.