Bitcoin Vs. Ripple: What Is The Difference?

To make a good decision, you have to know the difference between Ripple and Bitcoin. Some cryptocurrencies seem similar to others on the surface. Investing with precision, however, calls for you to know common crypto in detail.

The infrastructure being built by blockchain spans every industry and sector. Building your crypto portfolio with more than one cryptocurrency is a suitable way to hedge risk. However, you can’t leverage a strategy if you can’t distinguish different coins.

One of the common questions asked regarding Ripple and Bitcoin is the difference. For starters, XRP is the token used by Ripple and its blockchain, whereas bitcoin is both the blockchain and the currency.

What the two have in common is distributor ledger technology (DLT). From this point, the details of Ripple and Bitcoin greatly contrast. They simply can’t be approached as the same asset. Devising your workable strategy is possible after you grasp the potential of each.

Bitcoin

Bitcoin didn’t initiate the idea of decentralization, but out of the many prior attempts, it’s the single crypto to prove it’s possible. We use bitcoin as an example of what blockchain can achieve.

Roughly 10 years ago, those days following bitcoin’s creation prove how reliable the technology is. Bitcoin is now accepted by over 15,000 global brands like Subway and Microsoft. This coin, however, can’t be entirely compared to Ripple.

Here are some of the key differences:

• Mining rewards: In order for bitcoins to exist, they must be mined from a system of data blocking. This is the only way bitcoins get released to the public.

• Goods and services: The blockchain of bitcoin is advanced, but it’s limited to only being used as a medium of exchange. It’s a store of wealth and buys goods and services.

• Blockchain: Unlike Ripple, bitcoin operates on what’s considered a traditional blockchain algorithm.

• Proof-of-Work: This process is how bitcoin transactions are processed and confirmed. Proof-of-Work requires computing nodes and for human oversight.

Ripple

Designed specifically for banks, Ripple does what bitcoin can but for a specific industry. That sector is one laden with transaction delays and security challenges.

Due to these obstacles, the real-time settlement of bank transactions became the core objective of Ripple. Speed and expediency gives this developer the largest market share in the banking industry.

Ripple is keen to maintain transparency and security. The XRP token is Ripple’s currency and works in:

• Payment Settling: Authentication is the core issue when settling bank transactions, so Ripple uses blockchain to bypass the safety issues normally had.

• Currency Exchange: As a currency convertor, you can use XRP tokens to change into any fiat currency you choose. Buying fiat through an XRP token eliminates conversion fees.

• Remittance System: Even financial institutions want to work without mediators in their transactions. Ripple aims to scale remittance for local and international banks.

• Distributed Consensus Ledger: Bitcoin needs proof of its work and the help of man operated computers. Via automation, Ripple reaches a consensus without human control.