In this article of QuantVan Academy, we want to take look and answering the quetion of Bitcoin and Ripple: what are the differences. Let’s see in which areas they are so apart or so close with each other.
Cryptocurrencies and blockchain are inseparable part of our modern life, and most of the time people get confuse about the wide variety of avaible cryptocurrencies on the market. The best – known crypto is Bitcoin. Though the ripple has become increasingly popular among the fans of the world’s cryptocurrencies and investors.
Therefore, in this article we will explore the main differences between the Bitcoin and Ripple and also considering the pros and cons of each of them.
Bitcoin developed as a cryptocurrency with the aim of paying for services and products. In contrast, the ripple made for banks and payment networks for payments, money transferring systems and crypto exchanges.
The main idea of the ripple was to create direct assets transferring systems in simultaneous way that would be cheaper,more transparent and safer than recent payment methods like Swift.
Developers of Bitcoin and Ripple
Bitcoin developed as a cryptocurrency by a group of eager and willing developers. Bitcoin is a decentralized system and is governed by no bank, state, or third party, and is created by a person or mysterious group called Satoshi Nakamoto
On the other hand, the ripple is developed by a known corporation named Ripple in 2012 with specific targets and investors. In 2015, the Ripple had business offices in Australia, Luxembourg and England.
Technologies of bitcoin and Ripple
Bitcoin is the crypto that based on the blockchain technology which uses mining. and Ripple uses an iterative consensus ledger and validating servers network along with XRP cryptocurrency tokens.
The Ripple network is managed by a range of independent servers comparing their transaction records constantly. A new ledger of Ripple created each second.
The design of the ripple is in a way that the can’t mined. That is why these two cryptocurrencies are very different. Bitcoin miners usually rewarded with new Bitcoin.
XRP tokens at the amount of 100 billion have been pre-mined initially, and just 38 bln are available in the market, the rest are in Ripple labs and can be periodically released.
On the other hand, Bitcoin is not pre – minded and its maximum supply is about 21 million coins.
Issuance of coins
Bitcoin has spread throughout the world. 60 % of XRP tokens belongs to the ripple company. The price of each Ripple unit is very low in compare with the price of the Bitcoin.
The transmission and distribution of XRP tokens can tracked on the Ripple Charts website.
Transaction speed Bitcoin and Ripple
The approval of the Bitcoin transaction takes 10 minutes on average, while the confirmation of XRP takes only five seconds.
In Other usage
Bitcoin has the capacity for using as money. The aim is to use for transferring other currencies or commodities such as oil or gold.
The ripple network has a highly decentralized currency exchange, while Bitcoin has a centralized exchange. This also means that users can exchange XRP with dollars. This is possible in its network without the presence of middlemen or third parties
So if someone wants to sell their XRP for USD they can do that within the network without needing a third party.