Introduction
In this world of cryptocurrency, there is a huge problem popping up because of the confusion people are having, not just about the crypto world but also with the blockchain system and many more. Whenever we hear the term cryptocurrency, we immediately think of Bitcoin. However, as we all know, Bitcoin is not the only cryptocurrency out there, and in today’s blog, we will learn about another cryptocurrency called Ripples, as well as the distinctions, benefits, and drawbacks of both Bitcoin and Ripples.
What is Bitcoin
Bitcoin is virtual money that does not exist in the actual world. The bitcoin system is based on a blockchain network, which guarantees that users or customers will not be hacked or exposed to any other risks. Essentially, bitcoin is used for money transactions, but it also allows individuals to invest in it, which is one of the reasons why it is so volatile. Even as early as 2008, an unidentified individual dubbed Satoshi Nakamoto published a document describing how Bitcoin can replace our present banking system. The value of a single bitcoin was merely 0.00054 USD when this decentralized system was introduced in 2009, and as more individuals began to use bitcoin for money transactions and, more importantly, began to invest in this cryptocurrency, it grew in popularity. Many well-known celebrities and large corporations have now invested in Bitcoin, yet the value of a single Bitcoin has risen from 0.00054 USD in 2009 to around 41774 USD today.
What is Ripple
Ripple is a for-profit corporation that provides services to the banking industry. Ripple, often known as Ripple Labs, is the firm behind XRP. Ripple’s cryptocurrency is known as XRP. In the same way, that Samsung is a corporation and the Galaxy line of smart phones is a product of Samsung. Ripple Labs’ product is called XRP. Currently, the majority of international transactions use the SWIFT system. However, SWIFT have its own limitations, such as being a lengthy procedure that can take up to 3 days to complete a successful transaction, as well as a high-cost rate. Ripple aims to make international money transfers as secure and rapid as possible yet charging modest fees. Whereas Bitcoin is founded on its blockchain system and stands on its centralized system, Ripple focuses on acting as a payment protocol for banks, along with XRP, which is also a cryptocurrency, allowing Ripple to compete on both cryptocurrency and banking protocol grounds.
Bitcoin vs. Ripple
There are several distinctions between Bitcoin and Ripple, all of which are easy to grasp and differentiate. As we all know, Bitcoin employs a blockchain mining method to process transactions, which makes them significantly slower than Ripple. Ripple, on the other hand, serves as a payment protocol for financial institutions, making transactions significantly faster. As a result, both Bitcoin and Ripple use distinct techniques to complete transactions.
Taking this as a starting point, if we move on to the second point, efficiency will be another distinction between the two coins. As we all know, cryptocurrency mining is a complicated and time-consuming operation, but Ripple or XRP just takes a few seconds to authenticate the payments or transactions its clients are making. However, Ripple, like Bitcoin, has a fee, although it is generally much less than Bitcoin, which is a benefit for Ripple and a disadvantage for Bitcoin.
However, we all know that if something is only available in a tiny number, its value rises, and this is exactly what occurred with Bitcoin. Investors are interested in Bitcoin because of the constraint that there will never be more than 21 million bitcoins in existence, however when Ripple was introduced, 1 billion pre-mined XRPs were also issued with it, which is the outcome of Ripple’s low value in comparison to Bitcoin.
Not only that, but the two cryptocurrencies’ methods of circulation are also different. By its very nature, Bitcoin is open to the public, although its network is a little more intricate than Bitcoin’s.
If we were to summarise this entire conversation briefly, we might say that in the Official Site, it depends on the client’s demands, Bitcoin is more popular and open, employs a different operating mechanism, and Ripple came from a completely different perspective. Obviously, Ripple has more supply, is faster, and is less expensive than Bitcoin, yet Bitcoin has a considerably higher value than a Ripple. At the end of the day, it is up to the customer to determine what he or she desires.