Bitcoin vs. Ripple: What's the Difference?
FACEBOOK
TWITTER
LINKEDIN
By NATHAN REIFF
Reviewed By SOMER ANDERSON
Updated Jun 16, 2020
While bitcoin remains the clear leader among cryptocurrencies in terms of market capitalization and overall adoption rates, other contenders continue to surge ahead thanks to growing adaptability and varied applications. XRP ranks fourth on the list of top virtual currencies by market cap, behind bitcoin, ethereum, and tether.1 XRP is often referred to as "Ripple," although technically Ripple is the name of the company and network behind the cryptocurrency, and XRP is the cryptocurrency.2 3
Below, we'll take a closer look at what distinguishes XRP from bitcoin and other top digital tokens.
KEY TAKEAWAYS
Ripple is the company that is behind XRP, the cryptocurrency itself.3
Bitcoin transaction confirmations may take many minutes with high transaction costs, while XRP transactions are confirmed in seconds with little cost.2 4 5 6
XRP is a technology that is mainly known for its digital payment network and protocol.
Many major banks use the XRP payment system.7
Bitcoin vs. XRP
Bitcoin operates on a public blockchain ledger that supports a digital currency used to facilitate payments for goods and services. Bitcoin, the network, is primarily known for its bitcoin cryptocurrency (typically referred to as "bitcoin" or by the abbreviation BTC).8
The bitcoin network is based on the blockchain concept, a public ledger of verified transactions and record-keeping. Miners verify transactions on an ongoing basis and add them to the bitcoin blockchain which serves as a ledger of all activity across the network.8 In exchange for their time and the computing power necessary to validate the ledger in this way, miners are rewarded with BTC upon successfully validating certain quantities of transactions.9
XRP, on the other hand, is a technology that is mainly known for its digital payment network and protocol. Aside from the cryptocurrency XRP, Ripple is perhaps even better known as a payment settlement, asset exchange, and remittance system that works more like SWIFT, a service for international money and security transfers that is used by a network of banks and financial intermediaries.10 2
Transaction Validation
Instead of using the blockchain mining concept, the Ripple network uses a unique distributed consensus mechanism through a network of servers to validate transactions. By conducting a poll, the servers or nodes on the network decide by consensus about the validity and authenticity of the transaction. This enables almost instant confirmations without any central authority, which helps to keep XRP decentralized and yet faster and more reliable than many of its competitors.11
While the bitcoin network is accused of being energy-hungry due to its mining system, the Ripple system consumes negligible power owing to its mining-free mechanism.12 2
Processing Times and Costs
While bitcoin transaction confirmations may take many minutes and may be associated with high transaction costs, XRP transactions are confirmed within seconds at very low costs4 5 2 BTC has a total supply of almost 21 million cryptocoins, and XRP has a total of 100 billion pre-mined cryptocoins.13 14
Mining and Circulation
Bitcoin uses a proof-of-work system and mining for releasing new BTC tokens, forming an essential part of the validation process, while all of the XRP tokens are pre-mined.13 15 8 For this reason, XRP mining does not exist in the same way that bitcoin mining does.
The cryptocoin release mechanism is different for both BTC and XRP. While bitcoins are released and added to the network as, and when, the miners find them, a smart contract controls the release of XRP.16 9
Ripple planned to release a maximum of 1 billion XRP tokens each month as governed by an in-built smart contract; the current circulation is over 50 billion.13 16 Any unused portion of the XRP in a particular month will be shifted back to an escrow account.16
This mechanism ensures that there will be no possibility of misuse due to an oversupply of XRP cryptocoins, and it will take many years before all the cryptocoins will be available.
Similar to the bitcoin transaction processing fee, XRP transactions are charged. Each time a transaction is performed on the Ripple network, a small amount of XRP is charged to the user (individual or organization).6 The primary use for XRP is to facilitate the transfer of other assets, though a growing number of merchants also accept it for payments in a way similar to accepting bitcoins.2
Real-World Applications
While bitcoin is seeing increasing use by individuals and organizations as a virtual currency, the Ripple payment system is more popular among banks. RippleNet is a consortium of more than 200 financial institutions based in more than 40 countries, allowing for the easy facilitation of cross-border payments. The Ripple network continues to see growth among financial institutions, an area in which it is ahead of many of its competitors in the digital currency space.7
Overall, XRP is better for lower processing times and lower transaction charges than bitcoin.5 6
Bitcoin vs. Ripple Example
To understand both with real-world comparisons, below are some analogies.
Peter, living in America, visits Walmart and pays for his purchases in US dollars. He can also use his US dollars to purchase other currencies for trading and investment, like GBP or JPY, and sell them off at a later date for a profit or loss.
Bitcoin is an equivalent digital currency—an alternative to real-world US dollars, for example.8 Peter can make a purchase and pay for it in bitcoins, or he can purchase bitcoins for trading and investments and sell them off at a later date for profit or loss, just like trading any other fiat currency like the GBP or JPY.
If Peter in America wants to send $100 to Paul in Italy, he can do so by instructing his American bank to execute the transaction. After taking necessary charges, Peter’s American bank will issue instructions using the present-day SWIFT system that will credit Paul’s Italian bank account with the equivalent euros (or USD). This process may involve high charges at both ends and takes a certain number of days for processing.
Enter Ripple, the payment and settlement system that also has a currency, the XRP.3
Ripple’s payment system uses XRP tokens for the transfer of assets on the Ripple network.16 The same $100 can be converted instantly by Peter to equivalent XRP tokens, which can be instantly transferred to Paul’s account over the Ripple network.
Upon suitable verification and authentication of the transaction by the decentralized Ripple network, Paul will receive the XRP tokens. He will have the option to convert it back to USD's or any other currency of his choice, or even retain it as XRP tokens. The verification process is faster than those of bitcoin and traditional money transfer systems.5
The Bottom Line
While Ripple works in a bit more complicated way, the above example explains its basic workings. The Ripple system scores better than the bitcoin network for its lower processing times and lower transaction charges.5 6 On the other hand, BTC is generally more widespread and better known than XRP, giving it the advantage in other ways.1
Bitcoin remains a truly public system that is not owned by any single individual, authority, or government.8 The Ripple network, although decentralized, is owned and operated by a private company with the same name.2 Despite both having their unique cryptocurrency tokens, the two popular virtual systems cater to different uses.
If there was no contract at the receiving end of the transaction, then the total transaction fee would simply be equal to the provided GASPRICE multiplied by the length of the transaction in bytes, and the data sent alongside the transaction would be irrelevant.ethereum bitcointalk bitcoin genesis
криптовалюта ethereum
bitcoin putin алгоритмы bitcoin bitcoin рейтинг bitcoin компьютер nanopool ethereum bitcoin заработок яндекс bitcoin unconfirmed bitcoin nonce bitcoin The telephone, as we know it, came about in the mid 1800s, eventually changing forever how we communicate. For decades, the phone was the only mainstream channel of communication we had. But then came the Internet, the World Wide Web, cell towers, and other innovations. Everything changed.stats ethereum продам bitcoin bitcoin explorer рулетка bitcoin партнерка bitcoin puzzle bitcoin
bitcoin scripting порт bitcoin bitcoin автомат bitcoin exchanges будущее ethereum rotator bitcoin bitcoin ukraine
nodes bitcoin bitcoin принимаем bitcoin tm bitcoin prices reddit bitcoin график monero bitcoin форум bitcoin scam bitcoin india monero bitcointalk дешевеет bitcoin ethereum сегодня index bitcoin captcha bitcoin l bitcoin strategy bitcoin bitcoin конвертер ssl bitcoin bitcoin casino разработчик ethereum monero bitcointalk The reason these techniques would work, in theory, is that either party can kick the transaction back to the blockchain anytime they want, giving both parties the ability to end the interaction.bitcoin today tether майнить bitcoin drip
game bitcoin wei ethereum инвестирование bitcoin bitcoin ocean bitcoin yandex
акции bitcoin зарабатывать bitcoin bitcoin usb краны monero bitcoin tor bio bitcoin
win bitcoin bitcoin терминал hosting bitcoin bitcoin delphi skrill bitcoin laundering bitcoin bitcoin кранов счет bitcoin
bitcoin check ethereum прибыльность bitcoin instant bitcoin node отследить bitcoin pirates bitcoin block bitcoin приложение tether ethereum mist live bitcoin bitcoin markets metal bitcoin bitcoin майнить bitcoin crash пулы bitcoin bitcoin ebay
polkadot txid ethereum bitcoin курс
bitcoin pool заработок ethereum ethereum telegram ethereum node accelerator bitcoin keystore ethereum kurs bitcoin bitcoin магазин card bitcoin best cryptocurrency bitcoin tor What is the great accomplishment of the idea of Bitcoin? In discussing Bitcoin’s recent rise to $10avatrade bitcoin bitcoin send
bitcoin nonce bitcoin сети
ethereum cryptocurrency ethereum телеграмм cryptocurrency bitcoin фарм bitcoin открыть monero logo
bitcoin лого accept bitcoin
bitcoin картинка принимаем bitcoin ethereum online
bitcoin office bitcoin трейдинг bitcoin forecast chain bitcoin antminer ethereum bitcoin hosting bitcoin ios local bitcoin
bitcoin bonus bitcoin new payoneer bitcoin bitcoin swiss ethereum обвал the ethereum ethereum обменять bitcoin maps joker bitcoin bitcoin переводчик gif bitcoin faucets bitcoin форумы bitcoin
hourly bitcoin bitcoin рубль лотереи bitcoin bitcoin change case bitcoin баланс bitcoin webmoney bitcoin
code bitcoin
bitcoin easy minergate ethereum node bitcoin bitcoin настройка node bitcoin bitcoin flip avatrade bitcoin bitcoin frog bitcoin транзакции bitcoin картинки bitcoin fpga simple bitcoin перспектива bitcoin bitcoin address андроид bitcoin download bitcoin cryptocurrency bitcoin основы знак bitcoin bitcoin сервисы bitcoin лого обсуждение bitcoin bitcoin шахта розыгрыш bitcoin plus bitcoin monero обменять bitcoin data bitcoin analysis вход bitcoin
live bitcoin bcc bitcoin tether apk обсуждение bitcoin форум bitcoin bitcoin mmgp exchanges bitcoin ethereum перспективы bitcoin таблица monero address 6000 bitcoin bitcoin dogecoin bitcoin frog gemini bitcoin cryptocurrency market usa bitcoin bitcoin 99 euro bitcoin cryptocurrency reddit кран bitcoin ethereum api bio bitcoin
bitcoin порт bitcoin masters pizza bitcoin bitcoin fan bitcoin code bitcoin online bitcoin китай 3d bitcoin робот bitcoin p2p bitcoin alipay bitcoin
While wallets provide some measure of security, if the private key is intercepted or stolen, there is often very little that the wallet owner can do to regain access to coins within. One potential solution to this security issue is cold storage.проверить bitcoin cryptocurrency arbitrage collector bitcoin bitcoin миллионеры wikileaks bitcoin bitcoin land coins bitcoin bitcoin торги
linux bitcoin блок bitcoin
digi bitcoin car bitcoin 1 bitcoin bitcoin mining прогнозы bitcoin yota tether рынок bitcoin bitcoin fpga ethereum go bitcoin world арестован bitcoin форки ethereum antminer bitcoin mt5 bitcoin hacker bitcoin bitcoin play вложить bitcoin bitcoin spinner ethereum хешрейт tradingview bitcoin bitcoin me bitcoin go ethereum debian bitcoin страна
bitcoin blue падение ethereum mining ethereum
ethereum ann bitcoin раздача ethereum geth blog bitcoin gek monero блокчейн bitcoin
bitcoin drip decred cryptocurrency
accepts bitcoin ethereum биржа bitcoin 0 cran bitcoin
bitcoin работать принимаем bitcoin займ bitcoin kinolix bitcoin bitcoin capitalization monero amd laundering bitcoin all cryptocurrency ethereum clix cubits bitcoin monero calc сервисы bitcoin
bitcoin 3 кошелька bitcoin bitcoin обмен
продать monero bitcoin doubler bitcoin word bitcoin карта bitcoin сервисы bitcoin бесплатные
capitalization bitcoin bitcoin obmen будущее bitcoin bitcoin работа
bitcoin nachrichten nanopool ethereum bitcoin новости bitcoin крах ethereum frontier win bitcoin обозначение bitcoin bitcoin magazin bitcoin иконка monero майнинг новый bitcoin bitcoin удвоить bubble bitcoin lazy bitcoin json bitcoin bitcoin school moneypolo bitcoin se*****256k1 bitcoin bitcoin вклады автомат bitcoin bitcoin froggy bitcoin qr bitcoin eu bitcoin greenaddress cnbc bitcoin proxy bitcoin token ethereum bitcoin расчет earning bitcoin новости monero bitcoin plus ethereum solidity вложения bitcoin Now let’s have a look at the current voting process. First, the voter submits their voter ID, the ID is verified, and—using the centralized Electronic Voting Machine (EVM)—the voter submits their vote. However, hacking the EVM and manipulating the vote count can be easily done through a centralized system. But with the help of a decentralized, blockchain-enabled system, it may eventually be possible to eliminate this vulnerability and ensure fair elections. ethereum курсы byzantium ethereum биржа ethereum зарегистрироваться bitcoin аналоги bitcoin bitcoin github bitcoin symbol metal bitcoin bitcoin xyz
hd7850 monero форум bitcoin
bitcoin strategy
bitcoin png
bitcoin miner bitcoin прогноз difficulty bitcoin bitcoin prune
bitcoin earn arbitrage cryptocurrency ethereum course 2016 bitcoin bitcoin freebitcoin bitcoin ios bitcoin окупаемость monero обменник hd bitcoin создатель ethereum The network of bitcoin is not regulated by just one central authority. Everything is one part of the network, from the bitcoin miner machine and a machine that processes transactions making them work together. This theoretically means that no central authority can fiddle with the monetary policy which can cause a mishap or someone can’t just simply command to take away people’s Bitcoin from them, as what the Central European Bank did to Cyprus during the early 2013. Also, if one part of the Bitcoin network goes offline in whatever reason, the money will continue to flow.pull bitcoin connect bitcoin
pay bitcoin 1 ethereum nanopool ethereum bitcoin api boom bitcoin получение bitcoin my ethereum china bitcoin bitcoin steam bitcoin луна bitcoin investing fpga bitcoin перспектива bitcoin
ethereum gold bitcoin iso
bitcoin easy курсы bitcoin аналоги bitcoin обвал bitcoin блок bitcoin ethereum обвал homestead ethereum bitcoin sweeper bitcoin скрипт solo bitcoin обменники bitcoin ethereum gold token bitcoin bitcoin traffic bitcoin вики apk tether decred ethereum abi ethereum bitcoin farm monero биржи bitcoin roulette bitcoin debian bitcoin pdf обновление ethereum ethereum block
cronox bitcoin tether 4pda сложность monero bear bitcoin collector bitcoin tether пополнить bitcoin bloomberg miningpoolhub ethereum solidity ethereum king bitcoin price bitcoin monero rur ethereum проект ethereum ann config bitcoin стоимость bitcoin
my ethereum криптовалюта ethereum bitcoin get bitcoin отзывы daily bitcoin bitcoin mt5 chart bitcoin sgminer monero atm bitcoin отзывы ethereum bitcoin основы bitcoin баланс account bitcoin платформу ethereum bitcoin бизнес win bitcoin bitcoin hosting
clicker bitcoin bitcoin video bitcoin golden bitcoin roll bitcoin forum bitcoin создать bitcoin code Now, if Carl were to send the $100 to Ava using Monero, then who would validate and record this transaction? The answer is: Monero miners! This removes the need for banks to confirm transactions.транзакции bitcoin KEY TAKEAWAYSiobit bitcoin With CMC Markets you can trade bitcoin and ethereum via a spread bet or CFD account. This means you are exposed to slightly different risks compared to when buying these cryptocurrencies outright. bitcoin capitalization bitcoin roulette se*****256k1 ethereum bitcoin reddit Many believe that Bitcoin is 'just one of thousands of cryptoassets'—this is true in the same way that the number zero is just one of an infinite series of numbers. In reality, Bitcoin is special, and so is zero: each is an invention which led to a discovery that fundamentally reshaped its overarching system—for Bitcoin, that system is money, and for zero, it is mathematics. Since money and math are mankind’s two universal languages, both Bitcoin and zero are critical constructs for civilization.statistics bitcoin georgia bitcoin foto bitcoin byzantium ethereum bitcoin ann
bitcoin luxury продать monero bitcoin keys ethereum addresses bitcoin demo кости bitcoin bitcoin strategy 1060 monero bitcoin golden kinolix bitcoin 6000 bitcoin криптовалют ethereum coffee bitcoin forbes bitcoin bitcoin loto
There are many factors involved in joining a mining pool. Each pool might not be around forever, and the computational power of each pool is constantly changing, so there are a number of factors that go into deciding which to join.капитализация bitcoin blogspot bitcoin dogecoin bitcoin bitcoin rates bitcoin xapo bitcoin reddit ethereum платформа ethereum web3 bitcoin linux взлом bitcoin bitcoin информация iphone tether 2016 bitcoin local ethereum bitcoin gif byzantium ethereum сатоши bitcoin настройка monero bitcoin wm bitcoin average opencart bitcoin розыгрыш bitcoin bitcoin landing bitcoin q bitcoin анализ ethereum investing bitcoin xt фонд ethereum bitcoin зебра roboforex bitcoin bitcoin мошенничество bitcoin market bitcoin открыть ethereum block bcc bitcoin bitcoin cms bitcoin торговля bitcoin проверить local ethereum ethereum gas bank bitcoin bitcoin etf мастернода ethereum купить ethereum monero free monero proxy
simplewallet monero super bitcoin bitcoin facebook настройка bitcoin bitcoin шахты bitcoin миксер monero gui script bitcoin monero blockchain site bitcoin bitcoin bonus joker bitcoin ethereum капитализация hack bitcoin captcha bitcoin monero майнеры monero сложность перспективы ethereum Designbank cryptocurrency 4000 bitcoin bitcoin доллар bitcoin debian bitcoin segwit2x
депозит bitcoin bitcoin rub робот bitcoin блоки bitcoin ethereum free bitcoin twitter avto bitcoin bitcoin bonus is bitcoin серфинг bitcoin monero address bitcoin краны bitcoin bubble bitcoin server konvert bitcoin настройка monero monero hardware bitcoin fortune
bitcoin fan china bitcoin bitcoin preev bitcoin data сайты bitcoin converter bitcoin bitcoin суть bitcoin buy bitcoin capital bitcoin адреса Oct. 31, 2008: A person or group using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: 'I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. This now-famous whitepaper published on bitcoin.org, entitled 'Bitcoin: A Peer-to-Peer Electronic Cash System,' would become the Magna Carta for how Bitcoin operates today.1 ethereum webmoney bitcoin faucet cryptocurrency bitcoin путин bitcoin знак
abc bitcoin bitcoin софт bitcoin paper биржа bitcoin cryptocurrency market
bitcoin ммвб
explorer ethereum monero прогноз bitcoin оплата покер bitcoin wikileaks bitcoin
bitcoin rpg bitcoin transactions купить ethereum bitcoin spinner bitcoin робот monero faucet talk bitcoin raiden ethereum
монета ethereum bitcoin journal
вход bitcoin
основатель ethereum статистика ethereum bitcoin prosto ropsten ethereum bitcoin store
игра bitcoin
config bitcoin panda bitcoin ethereum coingecko эмиссия ethereum prune bitcoin ethereum info bitcoin rpg bitcoin journal bitcoin nedir bitcoin get ethereum poloniex bitcoin signals flash bitcoin bitcoin purchase
ethereum os bitcoin mixer bitcoin зебра avto bitcoin bubble bitcoin bitcoin timer bitcoin start ecopayz bitcoin main bitcoin bitcoin money ethereum биржа avalon bitcoin ethereum игра bitcoin neteller токен ethereum
bitcoin автомат bitcoin calc ethereum miner 10000 bitcoin bitcoin миллионеры майнер ethereum
ethereum price japan bitcoin bitcoin minecraft
продажа bitcoin Ethereum has been used to develop decentralized apps such as:bitcoin talk ethereum coin This crypto definition is a great start but you’re still a long way from understanding cryptocurrency. Next, I want to tell you when cryptocurrency was created and why. I’ll also answer the question ‘what is cryptocurrency trying to achieve?’обмен tether stratum ethereum bitcoin зарабатывать cryptocurrency mining matrix bitcoin scrypt bitcoin bitcoin pro bitcoin сколько ethereum пулы bitcoin create ethereum addresses
ethereum майнить терминалы bitcoin loans bitcoin
bitcoin выиграть ethereum клиент токен bitcoin The blockchain Bitcoin uses is supported by a consensus mechanism called 'Proof-of-Work' (PoW). The puzzle is so difficult that no human being could solve it on their own, which is why people need to use their computational power instead.33 bitcoin parity ethereum bank bitcoin конференция bitcoin компания bitcoin bazar bitcoin видеокарты ethereum
bitcoin pdf reverse tether bitcoin paper анонимность bitcoin bitcoin haqida kurs bitcoin ethereum создатель
bitcoin монеты tether bitcointalk cranes bitcoin network bitcoin играть bitcoin прогноз ethereum
bitcoin 10 ethereum miner mercado bitcoin
by bitcoin dogecoin bitcoin rocket bitcoin обмен monero bitcoin xt bitcoin course пополнить bitcoin hashrate bitcoin bitcoin stiller bitcoin compare тинькофф bitcoin mining ethereum bitcoin википедия difficulty ethereum
купить bitcoin bitcoin amazon bitcoin birds ethereum картинки course bitcoin
bitcoin asic дешевеет bitcoin paypal bitcoin форум bitcoin ethereum txid darkcoin bitcoin bitcoin мастернода
торговать bitcoin
рейтинг bitcoin bitcoin курс bitcoin дешевеет bitcoin clouding mining bitcoin widget bitcoin ethereum frontier monero minergate 33 bitcoin alpha bitcoin
bitcoin journal шахта bitcoin биржа bitcoin bitcoin сегодня ethereum coin bitcoin обменник While Ripple works in a bit more complicated way, the above example explains its basic workings. The Ripple system scores better than the bitcoin network for its lower processing times and lower transaction charges.5 6 On the other hand, BTC is generally more widespread and better known than XRP, giving it the advantage in other ways.1
