Difference between Ripple and Bitcoin
The past few years are testimonials of the dramatic fluctuation of public interest in cryptocurrencies. However, the investors’ interest in crypto surged in the 2020s. Whereas Ripple, apart from being a cryptocurrency, is also a payment settlement system. Bitcoin, in contrast, enjoys the title of the most popular cryptocurrency. Cryptocurrency can get treated as a Digital substitute for a currency that can get used for payments. The other facilities offered by Ripple, apart from currency exchange, are payment settlement and remittance systems.
Ripple vs. Bitcoin: The basics
“Ripple” is the combined term used to refer to cryptocurrency XRP and the RippleNet network. It was developed by a private company and can get treated as a cryptocurrency and a payment settlement platform.
Bitcoin, on the other hand, is a simple digital cryptocurrency that works on blockchain authentication-based technology.
Understanding the difference: Ripple vs. Bitcoin!
- 1. Technology employed
The basic and foremost difference lies in the technology employed by the two. Bitcoin taps the blockchain technology that is a shared public ledger, whereas Ripple relies on a consensus ledger. The transactions in Bitcoin are validated by mining concepts and by validators or validating servers in the case of Ripple.
- 2. Circulation
When launched, Ripple had a supply of 100 billion XRP, of which around 45 billion are presently in circulation. On the flip side, Bitcoin had a supply of 21 million, out of which 18 million is currently in circulation.
- 3. Uses
As discussed previously, Bitcoin is a digital currency with no third-party involvement and can be used as a payment method for almost everything.
One can use Ripple for currency exchange, payment settlements (both national and international), and remittances.
- 4. Speed of transactions
The biggest advantage of Ripple over Bitcoin is that the former is cheaper, faster, and offers remittances. Ripple is a low-cost and high-speed currency exchange and payment settlement system. While it might only take XRP a few seconds for a confirmed translation, the same translation will get confirmed in around 10 minutes in Bitcoin.
- 5. Coin issuance
Bitcoin’s supply is limited to 21 million and is not controlled by any organization. It can only be mined by computational math problem-solving.
Ripple, on the contrary, controls the supply of XRP by periodically selling a fixed amount in the market. Plus, it also enjoys ownership over 55% of all tokens of XRP.
Both Ripple and Bitcoin have their uses and pitfalls. Thorough knowledge and the right investment in either can lead to immense success and growth. Based on your needs and capital, choosing the right option is the key.
Click here for more!