The world of cryptocurrencies, is the present and the future of the economy, grows vertiginously, every day new digital currencies appear. You have probably heard that Bitcoin is the oldest and best known cryptocurrency, and it is also the largest one so far. We see also that the market for cryptocurrencies is much more popular due to the large number of digital token currencies that maintain a struggle to occupy a privileged space among customers. Ripple or XRP has become one of the leading fighters in this competitive cryptocurrency market.
What is Ripple?
In the previous article entitled Ripple: Why do they call it the cryptocurrency of banks? We talked in detail about this cryptocurrency created by the Ripple Labs company, based in the United States, which appeared in the market in 2012, and whose main objective was to create a payment system that offered help to banks, in order to make transfers of funds from anywhere in the world in a fast way and without any cost. But Ripple is not limited to banks, it can also be used by any financial institution or individual who wants to enjoy its benefits in terms of security.
What is Bitcoin?
Bitcoin is a digital currency created in 2009 by Satoshi Nakamoto, becoming the first digital cryptocurrency, as we saw in the previous article titled the 10 most popular cryptocurrencies this 2019. The idea was to create a global payment system point to point , in a way that allows people to send and receive digital money, from anywhere in the world where they are, without the participation of banks. When it is said point by point, it means person to person, it implies that there is no third party or intermediary that functions as a process verifier. This is why the Bitcoin system is decentralized, as there is no control by banks, governments or people.
Most notable differences between Bitcoin and Ripple
The main difference between these two cryptocurrencies is the purpose for which they were created. Bitcoin was created as a decentralized person-to-person payment alternative to the current payment system. That is to say, the objective is that there is no intermediary to perform the operation of exchange of values.
While Ripple is developed with the idea of improving the current payment system of banks, instead of replacing them or canceling the entity’s intervention, the idea was simply to improve their security. Ripple’s rule can be used to transfer currencies, including XRP, which is its own currency.
Another notable difference is that with Bitcoin mining can be done, and mining means that new transactions are verified, collected and placed in a block, and then added to an existing Blockchain. A miner receives new Bitcoins as a reward, any person can receive Bitcoins when mining, you only have to have a good computer that has a processor capable of competing with the millions of miners existing worldwide or joining a mining pool, just like we mentioned earlier in the article on the issue of bitcoin mining.
Instead, Ripple, decided to centralize the XRP broadcast, all circulating XRP has already been created, there are 100 billion of these coins, of which 40 billion have already been issued, the others are managed by Ripple Foundation. Monthly Ripple Foundation has as a policy the release of one billion XRP to the market at most, and those coins that are not used are recovered. The differences between these two important cryptocurrencies are summarized below
Differences between Bitcoin and XRP
Bitcoin started in 2009 long before Ripple with its XRP appears in the market just in 2012, on the other hand, the maximum distribution of Bitcoin is 21 billion while the distribution of XRP is 100 billion. Bitcoin performs 6 transactions per second and XRP performs 1500 transactions per second. Bitcoin with respect to smart contracts will soon implement Rootstock. For its part, XRP will use Codius for intelligent contracts. Bitcoin performs mining, but XRP does not need to perform mining since all the XRPs were created at the beginning of the Ripple and approximately 60% is in the hands of the Ripple company.
By way of conclusion, XRP is the currency of the Ripple protocol, it can be purchased by purchasing it. Most new cryptocurrencies are created when mining, which differentiates them from the 100 billion XRP, which were all created at the same time, that is, this cryptocurrency can not be mined, as we have mentioned before.
What do you think about this topic? Which cryptocurrency do you prefer: Ripple or Bitcoin?
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