When we talking about cryptocurrencies, the first thing that comes in your mind is Bitcoin. But it is not the only leading crypto in the market. While analyzing, you will also get to know about Ripple, a privately owned company that has developed its own currency and gives you new options.
Here we will show you what are the differences between Bitcoin and Ripple?
If we see it from a simplistic perspective, both Bitcoin and Ripple are cryptocurrencies that exist thanks to blockchain technology. And both projects have a particular native currency that can be exchanged and bought online in any exchange.
But although at first glance they look the same, the reality is that they are very different and now we will go into this in detail.
Technical aspects of performance:
Bitcoin: When we send funds to any person, the blockchain takes approximately 10 minutes to confirm the transaction. This is independent of where the people who send and receive virtual money are.
It does not matter if we are sending a person who is next to us or one who lives on the other side of the globe. It will take the same 10 minutes. If we compare this with a bank, Bitcoin is much faster, since the banking institution can require up to 3 days to make the same transfer.
Ripple: The first thing to note is that when we send XRP from one wallet to another it only takes a few seconds. The confirmation in Ripple makes this a better alternative when it comes to.
In the transaction of Ripple, you do not have to wait for 10 minutes or so, it happens immediately in no time.
Decentralization has to do with the possibility that no one person can control it. In the case of these 2 projects, many in the community argue that there are many facts that allow saying that they are not precisely decentralized, at least not as much as they should be.
Bitcoin: In the case of Bitcoin, although it is true that there is nobody that controls the network, today the things have changed a lot since the first days. When Bitcoin was launched, anyone could mine with a GPU or CPU.
Ripple: First, unlike Bitcoin, Ripple’s currency is controlled by a company called Ripple Labs. While it does not have the power to modify transactions or control people’s funds, it does have control of the money supply of the XRPs.
At the moment there are almost 40 billion Ripples in circulation, out of a total of 100 billion.
If you do not know the technical aspects of these cryptocurrencies, they have come here asking how they verify transactions if there is no third party that confirms, verifies, and audits them.
Bitcoin: The Bitcoin network generates a calculation so difficult to realize that humans can not do it. For that, we need the help of technology, which uses large amounts of energy to solve it. Once a miner arrives at the solution then the transaction is confirmed.
Ripple: Unlike the algorithm of Bitcoin, Ripple does not require solving complex calculations, which implies that it does not make intensive use of electrical consumption.
It only requires a few seconds for the system to confirm a movement of funds with only 80% of the validating nodes reaching consensus to allow a transaction to be accredited.