Whenever we hear or think something about crypto, the first thing that comes to our mind is Bitcoin, isn’t it? However, that doesn’t make Ripple an overlooked cryptocurrency ecosystem. Ripple was first invented in 2012. Diving deeper into Ripple, it is known to be the third largest form of popular cryptocurrency in the world. The place is decided on the capitalisation of the market.
However, Ripple can never be considered an alternative to Bitcoins. When it comes to Bitcoins, it is really valuable because of its uniqueness among all the other cryptocurrencies.
The motto behind Ripple is to only contribute to the betterment of the transaction systems globally. It does not focus on replacing the traditional payment system just like its other crypto counterparts. Just to get the set goal right, the company launched their first cryptocurrency called the XRP.
About XRP, it is not a medium but a tool that transfers the currency. Its exceptional blockchain has the ability to validate any transaction 215 times faster when compared to speed of bitcoin. Also, in case of Ripple or XRP, there are other ways than mining to have the cryptocurrency.
Similarities Between Bitcoin And Ripple
Both bitcoin and Ripple’s XRP has a limit in the amount. However, the limit is different for those. The XRP has the 100 billion of limitation whereas bitcoin has 21 million of Bitcoins. The company has the hold over 60 billion XRPs. And, the rest is circulating in the market. However, they do not prefer it because such a huge amount of XRP circulating in the market will definitely have a negative impact on its value.
Differences Between Bitcoin And Ripple
Although they have some basic features in common, there are also some key differences present as well. Here they are-
- They have a different mission
The mission of bitcoin is to replace the traditional payment system. Alternatively, the XRP is nothing like that. All the company wants is to make positive improvement in the transaction.
- Different transaction validating methods
Bitcoin uses the blockchain mining to validate the transaction or mine the bitcoins. However, the Ripple network is quite different than bitcoin. It has a different mechanism or method for verifying the transactions and validating them. The checking of authentication is higher in Ripple if compared to Bitcoin. Therefore, Ripple or XRP is also decentralized; however, it is a safer and more trustworthy than its competitors.
- Energy consumption
While doing the mining process, we can easily see that mining process Ripple’s XRP takes less energy compared to bitcoin. In fact, Ripple mining consumes extremely less energy consumption. Whereas, the amount of energy is consumed by the bitcoin mining, many governments are worried that it is going to affect the environment severely.
- Speed and cost
The process of bitcoin mining is extremely time consuming. Also, the transaction validations also take several minutes to be completed. Whereas, the time consumed by XRP is few seconds. Also, Ripple does not cost much in case of what happens in Bitcoin-related transactions.
However, there is small similarity as well in this regard. Whenever a transaction is validated by a miner, a certain amount of XRP is also charged to its user. The XRP is given to the miner who validates the transaction. Same was the case in bitcoin.
- Crypto circulation
Bitcoin will have a supply of 21million. On the other hand, the supply of Ripple’s XRP is almost 5 times than bitcoin. Its limit is 100 million. Among the 100 million, only 40 million is in the circulation in market. therefore, the company has hold over the 60 million. They earlier planned to release 1 million per month. However, the stopped from doing so because such a huge number of supplies will start affecting the price of it.
Ripple is considered among all the other cryptocurrencies. however, it has a different mission. It does not aim to replace any crypto or any payment method. However, it is designed in a way so that it can improve the current economic situation and traditional payment methods.
Conclusion
In fact, it is not designed to trade, but one can do it easily using the Bitcoin Era platform.