Cryptocurrencies and blockchain technology are developing rapidly. There are many coins and tokens in the cryptocurrency world, which usually make people confuse about their differences. However, the best-known cryptocurrency is Bitcoin, there are many altcoins in the market as well. Ripple is one the altcoins, which attracted the attention of many users during the past few years. In this article we are going explain the differences between Ripple and Bitcoin.
The goals of development
Bitcoin designed in a way to use as a medium of exchange. In fact, it developed to use as a payment option to pay for goods and services. On the other hand, Ripple designed to use by banks and other financial institutions as money transfer system and currency exchange. In fact, Ripple uses by banks and financial institutions to transfer money abroad using a cheaper, transparent and secure network. In other words, it came to replace SWIFT payment.
Who are the creators?
Bitcoin created by anonymous person or group of people, called Satoshi Nakamoto. It’s a decentralized system, which doesn’t control by any government, bank, or third-party.
But, it’s a bit different for Ripple. Ripple designed and developed by an official company in 2012. The company called Ripple company. Between the years 2015-2016 Ripple had offices in UK, Luxembourg, and Australia.
Differences Between Ripple & Bitcoin; Technologies
Bitcoin has its own blockchain. It uses the proof-of-work algorithm for mining. On the other hand, Ripple uses iterative consensus ledger. It validates servers network along with XRP tokens.
The Ripple network runs by independent servers. They constantly compare their transaction records. Each second a new ledger of Ripple is created.
Differences Between Ripple & Bitcoin; Mining
Ripple designed in a way to be not minable. This is one of the key differences between Bitcoin and Ripple. However, Bitcoin is minable and the miners earn reward in the form of new Bitcoin. The total amount of Bitcoin is only 21 million coins.
But, all the tokens of Ripple are pre-mined. The total amount of XRP tokens is 100 billion. However, only 38 billion of the tokens are available in the market. The rest of tokens held in Ripple labs and will release gradually.
Issuance of coins
Bitcoin owners are located around the world. But, 60% of XRP tokens held by Ripple labs. In the term of price, Ripple price is significantly lower than Bitcoin. If you want to track the distribution and movement of XRP tokens, you can use Ripple Charts website.
It takes only 5 seconds for a transaction on Ripple network to get confirmed. On the other hand, this time is around 10 minutes for Bitcoin.
Differences Between Ripple & Bitcoin; Use cases
Ripple designed to use for other commodities or currencies transfer such as gold or oil over the network. But Bitcoin designed to replace the money. In fact, it came to introduce the new generation of money.
In order to exchange Bitcoin with other currencies, it requires to use centralized exchanges. However, Ripple is totally decentralized. In order to exchange Ripple with other currencies you do not to interfere with any third parties or intermediaries.
|Transaction speed||Appr. 1 hour (depending on the fee)||3-5 seconds|
|Inflation||Coin supply raising to 21 mln cap by 2140||Almost deflationary (a very small amount of XRP can be destroyed in each transaction)|
|Coin supply||21 mln||100 bln|