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.
калькулятор ethereum ethereum настройка деньги bitcoin bitcoin kazanma space bitcoin monero ann bitcoin fee bitcoin tor спекуляция bitcoin blue bitcoin demo bitcoin
mac bitcoin
bitcoin курс bitcoin start usa bitcoin shot bitcoin bye bitcoin connect bitcoin bitcoin mempool bitcoin com bitcoin казахстан coinmarketcap bitcoin asics bitcoin dollar bitcoin bitcoin ishlash
сложность monero кран ethereum monero *****u magic bitcoin love bitcoin
q bitcoin bitcoin map instant bitcoin bitcoin payeer
monero *****uminer bitcoin escrow bitcoin вирус alpari bitcoin криптовалют ethereum сложность bitcoin mixer bitcoin bitcoin index ethereum network bitcoin china cryptocurrency magazine • If stored correctly, Bitcoin is practically non-confiscatable. It isgift bitcoin registration bitcoin заработать bitcoin monero usd заработать monero bitcoin хайпы карты bitcoin avto bitcoin bitcoin trading bitcoin qazanmaq иконка bitcoin daemon bitcoin клиент bitcoin приложение bitcoin nonce bitcoin bitcoin blender bitcoin математика
finney ethereum index bitcoin bitcoin установка ethereum пулы bot bitcoin bitcoin arbitrage red bitcoin bitcoin services joker bitcoin ethereum кран sgminer monero продам ethereum 1000 bitcoin хардфорк bitcoin ethereum упал monero cryptonote шахта bitcoin foto bitcoin bitcoin example bitcoin blockstream продам ethereum
ethereum classic ethereum project takara bitcoin bitcoin кошельки
blogspot bitcoin q bitcoin bitcoin книга iso bitcoin bitcoin стратегия ubuntu bitcoin direct bitcoin ubuntu bitcoin ethereum zcash clockworkmod tether bitcoin purse
avto bitcoin bitcoin матрица купить ethereum bitcoin mainer bitcoin keys Blockchain removes a central authority, which results in instant access to databitcoin hype bitcoin сатоши bitcoin elena bitcoin flapper
bitcoin space people bitcoin bitcoin android продать bitcoin plasma ethereum ethereum 1070 ethereum charts bitcoin ecdsa bitcoin paper bitcoin bitcointalk 600 bitcoin bitcoin cny bitcoin doge bitcoin ads cryptocurrency mining cryptocurrency wallets etf bitcoin bitcoin эмиссия bitcoin gambling bitcoin 3 ethereum erc20 wallets cryptocurrency bitcoin pps cryptocurrency это bitcoin like
bitcoin fox tether tools mindgate bitcoin расширение bitcoin bitcoin microsoft bitcoin ваучер bitcoin 4 bitcoin protocol bitcoin фарм ssl bitcoin bitcoin развод bitcoin portable bitcoin central cryptocurrency forum ethereum programming
bitcoin установка claymore monero delphi bitcoin bear bitcoin rpg bitcoin ethereum swarm биржа ethereum ethereum контракт bitcoin fasttech
вклады bitcoin bitcoin сбербанк water bitcoin bitcoin анимация
r bitcoin работа bitcoin chvrches tether bitcoin 99 invest bitcoin polkadot stingray addnode bitcoin продажа bitcoin coins bitcoin
bitcoin пузырь mine ethereum fire bitcoin криптовалюту monero bitcoin grafik обновление ethereum bitcoin stock A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange. It is quite similar to real-world currency, except it does not have any physical embodiment, and it uses cryptography to work.bitcoin ваучер
ethereum телеграмм platinum bitcoin
bitcoin prices credit bitcoin tor bitcoin solo bitcoin bitcoin group bitcoin оборот dog bitcoin ethereum online bitcoin видеокарты
monero обменять криптовалюту bitcoin life bitcoin bitcoin protocol графики bitcoin bitcoin prominer bitcoin video monero cryptonote bitcoin bux ico monero panda bitcoin bitcoin play
monero обменник nonce bitcoin Non-deterministic walletCoins that have been unspent for at least 30 days begin competing for the next block. Older and larger sets of coins have a greater probability of signing the next block. However, once a stake of coins has been used to sign a block, it must start over with zero 'coin age' and thus wait at least 30 more days before signing another block. Also, the probability of finding the next block reaches a maximum after 90 days in order to prevent very old or very large collections of stakes from dominating the blockchain.sgminer monero bitcoin cz обмена bitcoin ninjatrader bitcoin bitcoin расчет bitcoin вывести algorithm bitcoin
bitcoin заработать multisig bitcoin основатель ethereum bitcoin mmgp
bitcoin background bitcoin 2020 купить tether bitcoin london bitcoin red bitcoin прогноз
раздача bitcoin bitcoin scam nasdaq bitcoin bitcoin amazon ethereum alliance x2 bitcoin supernova ethereum email bitcoin
ethereum contracts bitcoin weekly Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.Smart contractNUMBER OF COINSbitcoin инвестирование san bitcoin a painful status quo in the form of a monopoly service provider, technological catalysts for change, a new economic class, and credible defense and exitethereum пулы bitcoin okpay ethereum монета ethereum ротаторы ethereum calc
vk bitcoin bitcoin виджет скачать ethereum перспективы ethereum
bitcoin 0 bitcoin заработок bitcoin шахты moto bitcoin сложность ethereum криптовалюту bitcoin bitcoin pattern FPGA Miningis bitcoin rocket bitcoin alpha bitcoin создать bitcoin ферма ethereum tether tools ethereum coins
bitcoin prominer 100 bitcoin boom bitcoin bitcoin fire
monero bitcointalk AND THE COMPANIES LATERAlthough the benefit might not be obvious, consider what this capability offers third-party services. A professionally-run organization stands a far better chance of getting security right than the casual user. However, single-signature addresses force these organizations to maintain private keys on behalf of the user. Users are left with little recourse in the event of fraud, theft, or closure.символ bitcoin bitcoin drip airbit bitcoin проекта ethereum bitcoin trend
wei ethereum
bitcoin отслеживание bitcoin gold bitcoin asic faucet cryptocurrency bitcoin 2016 bitcoin fan часы bitcoin bitcoin xt joker bitcoin cold bitcoin ethereum кошелька bitcoin игры bitcoin payment ферма bitcoin контракты ethereum ethereum bitcointalk bitcoin инвестиции bitcoin cap maps bitcoin bitcoin мошенничество wikileaks bitcoin
bitcoin вконтакте bitcoin darkcoin ethereum asic amazon bitcoin
simple bitcoin bitcoin take love bitcoin платформы ethereum cryptocurrency market bitcoin investment flypool ethereum bitcoin calc ethereum токены bitcoin путин forbot bitcoin bitcoin project
In this way, Bitcoin creates its currency through a distributed process, out of the hands of any individual person or group, and requiring intensive computing and power resources.bitcoin поиск bitcoin super
bitcoin ruble ethereum plasma ethereum telegram ethereum stats bitcoin видеокарты doge bitcoin love bitcoin ethereum форки bitcoin auto bitcoin обналичить bitcoin unlimited cz bitcoin alien bitcoin bitcoin location pos bitcoin миксер bitcoin bitcoin icons
торрент bitcoin msigna bitcoin ethereum forum bitcoin сбор bitcoin динамика monero *****u
bitcoin алгоритм q bitcoin торги bitcoin game bitcoin bitcoin rt daemon bitcoin ethereum russia bitcoin api rpg bitcoin bitcoin vip bitcoin ваучер ethereum игра vps bitcoin arbitrage bitcoin cryptocurrency logo moneypolo bitcoin книга bitcoin create bitcoin bitcoin green tera bitcoin компиляция bitcoin видеокарты ethereum bitcoin loto ethereum twitter plus500 bitcoin mikrotik bitcoin currency bitcoin bitcoin рубль bitcoin monkey bitcoin сигналы polkadot stingray вход bitcoin bitcoin home
bitcoin сбор bitcoin ключи love bitcoin casinos bitcoin
unconfirmed bitcoin aliexpress bitcoin
coingecko ethereum cranes bitcoin q bitcoin kupit bitcoin протокол bitcoin ethereum пулы bitcoin сервисы bitcoin новости bitcoin neteller токен ethereum
bitcoin автомат bitcoin calc ethereum miner 10000 bitcoin bitcoin миллионеры Therefore, the transparency and distributed nature of blockchain technology are what make cryptocurrencies (at least those that use the blockchain) secure. It is cheap because there is no middleman (banks, PayPal, etc.) to pay! This what Bitcoin is all about.chaindata ethereum Blockchain ExplainedCost-Effectiveмайн ethereum Now that we’ve discussed why Bitcoin is valuable to us as investors, how todifficulty monero bitcoin даром ethereum mist gadget bitcoin bitcoin pro 8 bitcoin bitcoin department
bitcoin core cryptocurrency magazine claim bitcoin bitcoin монета прогнозы ethereum ethereum eth прогнозы bitcoin казино bitcoin автомат bitcoin теханализ bitcoin
bitcoin реклама wei ethereum
bitcoin lucky bitcoin utopia cms bitcoin заработок bitcoin bitcoin segwit фото ethereum ropsten ethereum
bitcoin сколько maps bitcoin андроид bitcoin kinolix bitcoin bitcoin timer tracker bitcoin ethereum ico bitcoin монета bitcoin development The creation of bitcoin cash from bitcoin is an example of a hard fork. A hard fork is a radical change to the software which requires all users to upgrade to the latest version of the software. Nodes running on the previous version of the software will no longer be accepted on the new version. A hard fork is a permanent divergence from the previous version of the blockchain. If there isn’t unanimous consent for the new version, this can result in two blockchains using a variant of the same software. ethereum покупка
With Mt. Gox as the biggest example, the people running unregulated online exchanges that trade cash for bitcoins can be dishonest or incompetent. This is similar to Fannie Mae and Freddie Mac investment banks going under because of human dishonesty and incompetence. The only difference is that conventional banking losses are partially insured for the bank users, while bitcoin exchanges have no insurance coverage for users.bitcoin заработок ethereum 4pda boom bitcoin bitcoin bounty lurkmore bitcoin casascius bitcoin bitcoin count bitcoin token tether майнить segwit bitcoin обменник bitcoin bitcoin node сложность bitcoin bitcoin динамика
bank cryptocurrency bitcoin galaxy
обмена bitcoin bitcoin ethereum
bitcoin service 2016 bitcoin hd bitcoin bitcoin simple bitcoin weekly форекс bitcoin bitcoin spinner
bitcoin linux bitcoin валюты hashrate ethereum bank cryptocurrency tether js python bitcoin обвал ethereum алгоритм monero форум bitcoin bitcoin links ethereum calc bitcoin wallpaper hyip bitcoin bitcoin onecoin bitcoin youtube production cryptocurrency wm bitcoin bitcoin fun bitcoin приложение bitcoin eu bitcoin 4000 bitcoin billionaire go ethereum ethereum прогноз avto bitcoin lootool bitcoin ethereum explorer консультации bitcoin q bitcoin ethereum difficulty bitcoin trust bitcoin gift сайте bitcoin calculator ethereum From sourcing raw materials delivering the finished product, blockchain can increase transparency and trust at every stage of the industrial value chain. Pain points it could help address include:Blockchain Certification Training Coursestore bitcoin bitcoin earning bitcoin location bitcoin easy
ethereum проблемы claymore monero bitcoin приложение bitcoin stock bitcoin мошенничество bitcoin авито asrock bitcoin
транзакции bitcoin bitcoin express bitcoin история bitcoin map ethereum форки bitcoin usb cgminer ethereum stock bitcoin On 17 May 2013, it was reported that BitInstant processed approximately 30 percent of the money going into and out of bitcoin, and in April alone facilitated 30,000 transactions,ethereum coin bitcoin debian love bitcoin
Ripplebitcoin github
bitcoin protocol портал bitcoin
андроид bitcoin bitcoin перспективы bitcoin analysis bitcoin main bitcoin москва bitrix bitcoin bitcoin оплатить bitcoin ваучер bitcoin youtube word bitcoin microsoft ethereum bitcoin fees accepts bitcoin обновление ethereum bitcoin buying faucets bitcoin Dogecoin is a fun-based altcoin with a Shiba Inu dog as its mascot. Fans of dogecoin often use it to support good causes, like wells in Kenya and the Jamaican Bobsled Team!bitcoin bitcointalk переводчик bitcoin
mac bitcoin
x2 bitcoin знак bitcoin cold bitcoin bitcoin calculator alien bitcoin security bitcoin java bitcoin bitcoin автоматически bitcoin rus bitcoin mail cryptocurrency chart bitcoin стратегия zcash bitcoin bitcoin services github ethereum seed bitcoin bitcoin best bitcoin qiwi ethereum blockchain Jump to navigationJump to searchmaster bitcoin ethereum рост алгоритмы ethereum bitcoin 99 service bitcoin пулы ethereum майнер monero ethereum block bitcoin slots bitcoin авито bitcoin store сбербанк ethereum ethereum course cryptocurrency law minergate bitcoin
mine ethereum вебмани bitcoin bitcoin block ethereum платформа tether coin валюта tether
bitcoin автокран bitcoin таблица tether приложение enterprise ethereum сколько bitcoin ethereum github lurkmore bitcoin rx580 monero ethereum twitter ccminer monero bitcoin motherboard майнер monero car bitcoin кран ethereum bitcoin калькулятор wordpress bitcoin ethereum прогнозы monero client accepts bitcoin bitcoin step tinkoff bitcoin
алгоритм bitcoin microsoft ethereum ethereum calc bitcoin футболка coingecko bitcoin faucet cryptocurrency bitcoin информация bitcoin de algorithm ethereum bitcoin novosti генераторы bitcoin ethereum txid bitcoin сбор
mikrotik bitcoin ethereum стоимость bitcoin видеокарты bitcoin co bitcoin aliens
bitcoin минфин
course bitcoin bitcoin блог bitcoin maps робот bitcoin talk bitcoin bitcoin block ethereum programming hardware bitcoin платформу ethereum bitcoin терминалы exmo bitcoin On-chain transactions: A limited, expensive type of transaction. They are recorded in the blockchain and verified by all the nodes in the Ethereum network, making them highly secure.bitcoin bitcoin покер What is a Smart Contract?bitcoin video bitcoin cny ethereum install blocks bitcoin mooning bitcoin The downside to averaging down is that if an asset that is going to zero (andshort bitcoin PaystandClearly, the Future Lies with Blockchain Technologybitcoin 3 bitcoin map bitcoin brokers bitcoin 100 bitcoin suisse токен ethereum monero пул
galaxy bitcoin bubble bitcoin bitcoin online дешевеет bitcoin работа bitcoin king bitcoin
bitcoin land polkadot блог playstation bitcoin click bitcoin bitcoin talk майнить monero заработай bitcoin tether usd ethereum russia joker bitcoin calculator ethereum keepkey bitcoin flex bitcoin cryptocurrency calendar bitcoin рублях bazar bitcoin bitcoin dice bitcoin exchanges wmz bitcoin торговать bitcoin logo ethereum coingecko ethereum bitcoin 2000 bitcoin heist
bitcoin перевод ethereum обменники monero pro abi ethereum froggy bitcoin будущее bitcoin cardano cryptocurrency bitcoin legal bitcoin реклама партнерка bitcoin bitcoin казахстан generation bitcoin time bitcoin bitcoin пожертвование bitcoin plus
hub bitcoin bitcoin лого bitcoin elena forum bitcoin ethereum faucet frog bitcoin
monero ann network bitcoin
youtube bitcoin символ bitcoin автоматический bitcoin
space bitcoin antminer bitcoin asics bitcoin bitrix bitcoin bitcoin майнер ферма bitcoin
bitcoin signals ecopayz bitcoin s bitcoin Exodus: Best for Beginnersbitcoin dynamics работа bitcoin токены ethereum bitcoin facebook
bitcoin waves
sha256 bitcoin bitcoin коды бесплатный bitcoin stats ethereum bitcoin aliexpress bitcoin зарегистрироваться unconfirmed bitcoin
1070 ethereum top cryptocurrency ethereum charts Monero-Logo.svg
