Blockchain and cryptocurrencies have become an integral part of our modern life. Today, the number of cryptocurrencies, together with altcoins, has exceeded 4 thousand. Bitcoin and Ripple are some of the most popular among them. These crypto types are the subject of this article. So let’s take a look at the key differences between both tools.
Basically, Bitcoin is a digital currency designed to pay for goods and services. On the other hand, Ripple is a money transfer system and exchange tool built exclusively for banks and PSPs. The reason for developing Ripple can be defined as creating a real-time asset transfer system that is cheaper, more secure and transparent than existing payment methods such as SWIFT.
The only common feature of Ripple and Bitcoin is that both projects use the technology of a decentralized data registry and have their own cryptocurrencies of a distributed network. This is where the similarities end, and the fundamental differences begin. Let’s focus on them.
- Ripple is built on a gateway system that serves hundreds of servers around the world. That is, the company uses distributed data ledger technology, but its architecture differs drastically from the typical blockchain.
- As conceived by its developers, Bitcoin was originally supposed to become a flawless alternative to fiat money (dollar, ruble, euro, etc.). The Ripple network has a different task. It doesn’t try to substitute money. Its objective is to provide a free exchange of assets between users with almost instant transactions and minimal fees.
- The target audience of Bitcoin is not limited. The network was created for everyone who likes cryptocurrency’s benefits. Ripple was initially focused on cooperation with banks and payment system providers.
- Bitcoin mining is carried out using GPU farms or ASIC miners, while there is no mining as such in the Ripple system. Ripple tokens have already been issued in the amount of about 100 billion coins and there is no need for mining. Users can get XRP in several ways (by exchanging or buying on an exchange, as well as by performing calculations).
- The maximum supply of XRP tokens is set at 100 billion, and they were all created during the launch of the Ripple network. The total amount of BTC was calculated at 21 million. These tokens are not created in advance, and as miners validate blocks of transactions, they earn new BTC as rewards. Thus, new BTC comes into circulation. According to coin distribution on the world map, Bitcoin is spread unevenly around the world, while 60% of XRP tokens are owned by the Ripple company.
- From the very beginning, the Bitcoin blockchain had a relatively high degree of decentralization, while Ripple had no such characteristic. Only those servers that the company allowed to integrate with the network were engaged in validating transactions in the distributed ledger.
- The Bitcoin network doesn’t have fixed fees for transactions. But to complete the operation, a user has to specify the amount of fees manually; otherwise, miners simply will not accept it for processing. On the Ripple network, the commission is fixed at only 0.00001 XRP, although this amount can hardly be called a commission. The fee is set for the purpose of protection against spam attacks and overloading the system with unnecessary transactions. Commissions do not become someone’s income but burn out, due to which the total amount of funds in circulation is constantly decreasing.
- While the transaction approval time on the Bitcoin network is claimed to be 10 minutes on average (it can even exceed 1 hour depending on density), XRP transaction confirmations take only 4-5 seconds.
- As for confidentiality, Bitcoin provides full confidentiality on operations, while data is not anonymous in Ripple.
- The number of transactions performed per second is 1500 for Ripple and 4-15 for Bitcoin.
Where to Buy, Sell, Exchange?
Both tools are popular for e-trading. If you want to exchange Ripple coins, visit the TimeX website. Find the current XRP AUD price on TimeX crypto exchange. The resource provides visitors with all the relevant information about coins and the latest news in the trading world. Users can buy and sell coins using different fiat currencies.