Ethereum works as a digital platform based on Blockchain technology, which is based on smart contracts and was designed to create various applications. The currency used by this network is called “Ether”, however, the community usually calls it by the name of the platform: Ethereum.
The objective when creating Ethereum was not to develop a cryptocurrency or some payment system but to create a platform that was capable of offering a good service, which is why Ethereum is the combination of a decentralized digital mining network and a platform of software development. Ethereum borrows the philosophy from Bitcoin, which is a secure network, works decentralized, and runs on the Blockchain.
What is Ripple?
Ripple is a project with free software and a payment protocol that pursues the development of a credit system based on the peer to peer paradigm. It was founded by the company Ripple Labs in 2012, consolidating itself as the platform for the cryptocurrency “XRP”. In the same way as other existing cryptocurrencies, Ripple is built on a distributed network idea that requires several parties to get involved in order to validate transactions, in such a way that it does not need a centralized authority to control what happens within. Of the same, Ripple does not have a fluctuating amount in existence, it was created with one hundred billion XRP Tokens since its founding.
Ripple differs from other cryptocurrencies, in that it cannot be mined, since all its Tokens were created at the time of its foundation and launch, it is estimated that around 40% of these Tokens are in circulation, and the remaining is in the power of the company and will be gradually released to the market. Here are some advantages of Ethereum over Ripple:
It has no government regulation
No entity, government or bank, exercises control over Ethereum, in such a way that it is difficult to control its value, which will depend exclusively on the trust of its users and the solidity of its transactions, which generates tranquility to users when paying with Ether, since the money will go directly to its owners, without anyone intervening. On the other hand, Ripple acts as a kind of “intermediary” between financial institutions, the information of the movements within this platform is confirmed directly by the company that created it.
Focus on people
Ethereum is a platform focused to be used by people and application developers, while on the other hand Ripple is focused to be used by banks or financial institutions (since it is developed to do all kinds of banking operations), basically institutions financial companies “contract” the services of Ripple’s platform in order to have their blockchain system.
It is cheaper
To use the Ethereum Blockchain, you must pay with your currency (Ether), however, the transactional fees of Ethereum are cheaper than those of Ripple, this is closely related to the previous point since Ripple is focused to be used by banks or financial institutions.
Smart contract security
Ethereum is based on smart contracts, the service requestor does not need to relate or communicate with the one who performs the work, since the application indicates when to issue payments in Ether according to the conditions previously established in the smart contract. On the other hand, the one who performs the service does not “fear” that the applicant does not comply with the contract (either by stopping it or not issuing the payment), since there is a payment agreement in “Ethers”, the amount has already been “Withheld” and will be delivered to the counterparty when it performs the services, as agreed.
A platform for other products
Ethereum is a platform that can be used for other products and applications, which gives it a lot of strength, since every day its information improves, providing developers with an environment so they can contribute and develop tools or applications. It is a ‘roadmap’ with a long ‘lifetime’ design, providing its users with a promising future by offering continuous improvements and new applications. On the other hand, Ripple, by focusing on services for financial or banking entities, its future and growth depend a lot on the acceptance of the financial or banking system.
The great acceptance that Bitcoin and Ethereum have had has caused a rise in their prices in the cryptocurrency market, for its part Ripple continues to be trapped in a “lower” value zone, which shows that it still has a long way to go in the market of cryptocurrencies and acceptance by the general public.
Only time will tell us which cryptocurrency will be more relevant in the market or will have greater acceptance in the future, however at the transaction level, the numbers continue in favor of Ethereum since Ether is the second cryptocurrency with the highest number of operations to world level (after Bitcoin).
What do you think about this topic? Would you mention any other advantages of Ethereum over Ripple?
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