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Blockchain Semantics Blog Bitcoin vs Ripple

Bitcoin vs Ripple

April 10, 2018, 5:35 a.m. GMT

The valuation of Ripple over the last year has been evident, obsession around Bitcoin has pushed investors in the pool of Cryptocurrencies. These coins like Ripple, Ether. Stellar, Iota are new twists in Bitcoin technology.

Ripple has shown almost 51,709% growth compared to 2017 start, with the highest price of $3.31. While we are trying to figure out which cryptocurrency to invest next, Ripple is definitely on the list. Comparing Ripple to the mother of all cryptocurrency Bitcoin, there are few differences we would share with you.

The key difference between Bitcoin and Ripple is their initial purpose. At the beginning of cryptocurrency era, Bitcoin was intended to serve as the very first peer-to-peer cryptocurrency protocol. On the other hand, Ripple was created to be a payment system, remittance network, and currency exchange. Ultimately, Ripple has built its network that includes its own cryptocurrency Ripple, or XRP.

 

How do you use Bitcoin?

As mentioned before, Bitcoin is a kind of peer-to-peer cryptocurrency protocol. It was launched by Satoshi Nakamoto on January 3, 2009. Since its creation, Bitcoin has come a long way – today Bitcoin value exceeds any of the fiat currencies.

 

Is Ripple a cryptocurrency?

Bitcoin is the mother of cryptocurrencies, this is how most people know it. Meanwhile, there is somewhat a controversy in relation to Ripple’s digital currency status. Initially, Ripple’s key function was to enable secure, instant and almost free global financial transactions of any size with no fees involved.

The transactions are intended to apply to any type of asset, whether it is digital currency, fiat money, or commodities. Ultimately, the system has created its own network to include the custom cryptocurrency called Ripples.

 

Interesting fact

An interesting fact is that actually, Ripple is older than Bitcoin. Ripple project has its roots going back to 2004. That time, Ryan Fugger has thought of an idea of creating a payment network and distributed exchange. Ripple as currency was established in February 2013 by OpenCoin Inc.

Where both Bitcoin and Ripple are cryptocurrencies, there are definitely some differences between the two. Let’s summarize them.

Ripple and Bitcoin difference no.1: Transaction speed

The Bitcoin Blockchain is requiring mining process. That is why Bitcoin transactions are usually taking longer to authorize than Ripple. Ripple transactions just take 4 seconds to process. That's why Bitcoin transaction speed is slower than Ripple.

Ripple and Bitcoin difference no.2: Decentralized/Centralized exchange

In order to buy or sell Bitcoins, one has to utilize the centralized exchange, which can potentially crash. With Ripple, you can buy or sell XRP on its own secure network.

Ripple and Bitcoin difference no.3: Mining process

Bitcoins are created by mining process. Ripple creators have already created 100 billion Ripples for the release. Out of these 100 billion Ripples, 55 billion is distributed to users, strategic partners and charitable organizations.

Ripple and Bitcoin difference no.4: Information tracking

Ripple tracks information of any kind, such as account balance. Whereas, Bitcoin network only tracks the movement of Bitcoins.

Ripple and Bitcoin difference no.5: Transaction fee

Keep in mind, that each Ripple transaction has a fee, which is eventually being destroyed. This implies that the fee is not paid to anyone. Bitcoin transaction fees, on the other hand, are paid as a reward to the miner to include a transaction in a block formation.

Ripple and Bitcoin difference no.6: Value in USD

Ripple value in USD is far less than bitcoin. As of now, Ripple(XRP) price is $ 0.6933 & Bitcoin (BTC) price is $ 8421(approx).

Just a small note, this is not an investment advice, please do your research before investing in any cryptocurrency. If you don't know how to research and to the analysis of cryptocurrency before investment, do check our new course on Investing in Bitcoin and Cryptocurrencies.

 

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