In general, most of the people get confused when it comes to distinguishing large cryptocurrencies like Ripple and Bitcoin. There is no question that Bitcoin is still one of the leading digital currencies based on blockchain technology.
If you are new to the cryptocurreny world and want to investigate then you are probably confused about which one you are going to investigate in Bitcoin or Ripple. That is why you need to know differences between in them.
So what is this Ripple?
Ripple previous known as OpenCoin is a technology that especially serves cryptocurrency but also as a digital payment network.Ripple created in 2012 with a different purpose from Bitcoin. Ripple is known for seamless payment protocol which ensures smooth cryptocurrency and money exchange.
Shortly Ripple is a currency exchange and remittance system which intended to assist in payments for financial institutions.
What is Bitcoin (BTC)?
Bitcoin is the best known cryptocurrency in the world which does not attached to a single administrator or a central bank which can be transfer from user to user on the peer-to-peer network without needs of intermediaries.
Due to the global recession of 2008 Bitcoin is announced in 2009 as a response. Bitcoin one of the most trusted and secure payments for goods and services.
Bitcoin firstly announced by anonymous group called Satoshi Nakamoto back in 2008. So Bitcoin is a independent peer-to-peer currency that eliminate the need of intermediaries like governments and financial institutions.
What are Differences between Ripple and Bitcoin?
One of the main differences between Ripple and Bitcoin is usage. In general Bitcoin is use for as an alternative to fiat money. With Bitcoins support you can buy good and services same as fiat money. In the other hand Ripple is used for the transfer
Dissimilar to the Bitcoin which operates as a blockchain technology and employs the usage of mining accurately proof-of-work system Ripple uses consensus protocol to avoid double-spending problems. Also ripple uses XRP tokens along with validating server. Design of XRP does not require any king of mining that is why Ripple is different from Bitcoin.Ripple network is managed by a wide range of independent servers and Ripple is a network that constantly comparing transaction records.
Ripple network uses actual cryptocurrencies called XRP tokens that assists money between various countries.In the other hand Bitcoin is a self digital currency.
XRP tokens represents values of a transfer across the network which is different from Bitcoin which coins are made as a rewards for clients that offer the computing power to maintain the blockchain network.
Unlike Bitcoin which uses blockchain mining, Ripple network uses a distributed consensus to validate the XRP transactions.
With the help of this without any central authority instant confirmations are enabled and that is why XRP is reliable and faster than Bitcoin.
Transaction Costs and Time
Transaction of Bitcoin takes much longer time which is 10 minutes on average but in the other hand XRP transactions can be settled in just 5 seconds which is faster than Bitcoin.
Transaction cost of BTC is almost $40 whereas XRP has significantly lower transaction costs that is $0.004. Market Capitalization:Market capitalization of Ripple stands at $35.42bn that has placed XRP third in the list of top-ranking cryptocurrencies. In the other hand Bitcoin still rang at the top of with cap of almost $192.96bn. Bitcoin holds 41.8% of the total market capitalization of 1535 existing cryptocurrencies.