The evolution of digital currency known as cryptocurrency has been a great source of development and growth in different sectors globally. Bitcoin was the first cryptocurrency to be launched globally, but so many other cryptocurrencies have been released after its launch. People often ask questions about the difference between Bitcoin and Ripple, especially when they want to buy Ripples. In this article, we explain extensively what Ripple is, the differences between Ripple and Bitcoin, and why you should buy ripples.
Ripple was created to provide an alternative to bitcoin. It is a cryptocurrency, and it is used to settle payments, exchange currency, and a remittance system envisioned for banks and payment networks, while Bitcoin is a digital currency envisioned as a means of payment for goods and services. Majorly, people tend to buy ripples more than bitcoin.
Ripple is a system that makes payments between banks in different government-issued currencies easier and faster. The main purpose of ripples is to make direct transfer of assets like money, gold, etc., faster and settle in almost real-time. This cryptocurrency is a cheaper, faster, more transparent, and secure alternative to current global transfer systems used by banks today. And this is one of the reasons clients and banks buy Ripples.
Bitcoin versus Ripple
If you are seeking to buy Ripples, it is important to know how different it is from Bitcoin. Although Bitcoin and Ripple are both cryptocurrencies, they are different, and they both have their unique functions and properties. Some of which are:
- Bitcoin relies solely on blockchain technology, but ripple doesn`t. Ripple relies on a distributed consensus ledger, a network of validating servers or validators and crypto tokens called XRP (sometimes referred to as Ripples). These validators are important; therefore, they are picked by ripple.
- Bitcoin is generally a cryptocurrency that has a decentralized system, i.e., it involves no third parties and no central authority controlling its supply and demand and it is used for payment for goods and services. While Ripples was created as an alternative to the old payment systems like SWIFT payments. It offers a much faster, cheaper, and more difficulty-free way to exchange currencies and send money to any part of the globe.
- Bitcoin is expensive and slower than Ripples: Bitcoin is more expensive than Ripples, and it is quite difficult to afford. It also has a complicated and intensive mining process; therefore, its transaction confirmations may take a long time and the transaction costs are higher because of that. While transactions conducted with ripples are faster and can be confirmed within seconds, thereby making its transaction cost lower.
Major differences between Bitcoin and Ripple:
People love to make informed decisions; therefore it is important to know why you should buy ripples. Some of the major reasons you should buy ripples include
- The supply and circulation of Bitcoin and Ripple: Bitcoin has a supply of 21 million, while Ripple has a supply of 100 billion XRP. Out of Bitcoin`s supply, over 18 million are in circulation already, while out of Ripple`s supply, 45 billion is currently in circulation, because it was mined back when the cryptocurrency was launched.
- Circulation mechanism: Bitcoin and Ripple are circulated differently. The supply of Bitcoin greatly depends on the speed of the network and how difficult the mining algorithm is. While Ripple’s supply is controlled by a smart contract used to control their release. This cryptocurrency is circulated by Ripple company, and they release about 1 millions of it every month, and the circulation is currently more than 50 billion. And any of the portion unused will be shifted to an escrow account.
- They Both Have Different Methods to Validate Transactions: Bitcoin uses a blockchain mining concept to validate transactions. While Ripples uses a unique shared agreement method to validate transactions. The transactions conducted using ripples are confirmed by conducting a poll in which participating nodes verify the authenticity of the transaction. This method makes it easier to instantly confirm transactions without requiring a central authority. Hence, ripples remain decentralized, faster, and more reliable than most of the other cryptocurrencies. This also means that this ripples shared agreement system consumes small amounts of energy as compared to Bitcoin, which is considered an energy hog.
- Mining process: Bitcoin was designed to be mined, as a miner you are rewarded in the form of newly created Bitcoin. But Ripples was not designed to be mined at all. Before launching the XRP, 100 billion XRP tokens were pre-mined, of which 38 billion were released to the public market. Unlike Bitcoin, the remaining amount of these XRP tokens are held by Ripple labs and are periodically released.
- The Ripple company is a private company, which has managed to develop the cryptocurrency known as XRP on its own. The cryptocurrency is not only pre-mined, but the method it uses is also simpler than the one used by Bitcoin.
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