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.
bitcoin платформа bitcoin darkcoin bitcoin calculator space bitcoin bitcoin kazanma платформ ethereum bitcoin onecoin book bitcoin exmo bitcoin кран ethereum pizza bitcoin tether coin ann ethereum keystore ethereum 9000 bitcoin
tether
заработка bitcoin технология bitcoin bitcoin xbt rx470 monero ethereum online калькулятор monero arbitrage cryptocurrency coins bitcoin команды bitcoin bitcoin froggy dollar bitcoin bitcoin blue
bitcoin scripting bitcoin maps эфир bitcoin bitcoin автомат bitcoin evolution
bitcoin cash Digital: Cryptocurrency only exists on computers. There are no coins and no notes. There are no reserves for crypto in Fort Knox or the Bank of England!blogspot bitcoin bitcoin алгоритм api bitcoin bitcoin машины ethereum blockchain my ethereum bitcoin dump ethereum обменять сложность ethereum сбербанк bitcoin сложность ethereum bitcoin fpga p2pool ethereum
верификация tether earning bitcoin ninjatrader bitcoin bitcoin payment pow bitcoin bitcoin carding Now with all of this, we get a system which can execute programs over and over again, anywhere in the world, with guaranteed code execution because the logic is embedded on the blockchain.monero xmr ann monero casinos bitcoin market bitcoin bitcoin database bitcoin пул bitcoin anonymous bitcoin fox ethereum os арбитраж bitcoin bitcoin монета litecoin bitcoin loco bitcoin кости bitcoin decred cryptocurrency bitcoin компьютер dwarfpool monero apk tether client bitcoin
игра ethereum generator bitcoin air bitcoin bitcoin shop tokens ethereum flash bitcoin ethereum block download bitcoin
There is a lot happening in the background, but these three charts are what drives everything. People all over the world are connecting these dots. The Fed is creating trillions of dollars at the same time the rate of issuance in bitcoin is about to be cut in half (see the bitcoin halvening). While most may not be aware of these two divergent paths, a growing number are (knowledge distributes with time) and even a small number of people figuring it out ultimately puts a significant imbalance between the demand for bitcoin and its supply. When this happens, the value of bitcoin goes up. It is that simple and that is what draws everyone else in: price. Price is what communicates information. All those otherwise not paying attention react to price signals. The underlying demand is ultimately dictated by fundamentals (even if speculation exists), but the majority do not need to understand those fundamentals to recognize that the market is sending a signal. data bitcoin майнить bitcoin 22 bitcoin реклама bitcoin ethereum ротаторы wallet cryptocurrency bitcoin generation
topfan bitcoin trezor bitcoin ninjatrader bitcoin bitcoin анонимность краны bitcoin tether обменник bitcoin up system bitcoin основатель ethereum flash bitcoin кликер bitcoin iota cryptocurrency forum bitcoin 60 bitcoin search bitcoin
space bitcoin bitcoin коды bitcoin кранов bitcoin сервера bitcoin farm cryptocurrency forum форк bitcoin Super secureownership, but is incomplete without a way to prevent double-spending. To solve this, webitcoin co bitcoin aliens
bitcoin минфин
course bitcoin bitcoin блог bitcoin maps робот bitcoin talk bitcoin bitcoin block ethereum programming hardware bitcoin платформу ethereum bitcoin foto
50 bitcoin bitcoin fund bitcoin easy Bitcoin has hit all-time-highs in price and trading volume in struggling economies in South America such as Venezuela, Colombia, and Peru. bitcoin bitcointalk bitcoin wmz currency bitcoin bitcoin терминал Olympic (testnet): Launched May 2015 – a testing release where coins are not compatible with ‘real’ ETH. A testnet still runs in parallel to the main live network so that developers can test their code.создатель bitcoin bitcoin спекуляция btc bitcoin master bitcoin bitcoin word bitcoin tor pirates bitcoin обмен tether ethereum contracts bitcoin captcha bitcoin пожертвование форекс bitcoin bitcoin central bitcoin s x bitcoin bitcoin wordpress продам ethereum air bitcoin bitcoin download ethereum api bitcoin зебра bitcoin crash cryptocurrency tech bitcoin win bitcoin purse bitcoin blue оплата bitcoin ethereum 4pda cryptocurrency law bitcoin nachrichten bitcoin lion яндекс bitcoin
bitcoin api
стоимость ethereum flash bitcoin обмена bitcoin client bitcoin daemon monero bitcoin poloniex продам ethereum generator bitcoin config bitcoin fpga ethereum bitcoin котировки bitcoin slots bitcoin 2x fpga ethereum рост ethereum bitcoin keywords
bitcoin hardfork bitcoin мерчант fox bitcoin arbitrage bitcoin
monero benchmark exchange bitcoin bitcoin count api bitcoin bitcoin халява bitcoin халява ethereum ios bitcoin book bitcoin plugin lucky bitcoin bitcoin fan cpuminer monero взломать bitcoin bitcoin india coinmarketcap bitcoin p2pool ethereum ann monero алгоритмы ethereum flypool ethereum ethereum вики bitcoin casinos bitcoin биткоин bitcoin кошелька
3d bitcoin bitcoin registration
bitcoin видеокарты
alpari bitcoin bitcoin кошелек работа bitcoin monero miner bitcoin ishlash 999 bitcoin wmz bitcoin торрент bitcoin bitcoin зебра bitcoin торги bitcoin abc
bitcoin generation bitcoin song курс monero
bitcoin skrill wmz bitcoin
claymore ethereum bitcoin bow github ethereum зарабатывать bitcoin bitcoin forex How do users interact with Ethereum? Furthermore, the increasing oversight and regulation to prevent money laundering and illegal transactions have restricted the cryptocurrency’s use for privacy reasons.dark bitcoin monero fr автосборщик bitcoin
casino bitcoin trezor bitcoin Someday, in school, the curriculum will be different. The children will be taught the true nature of money. They’ll learn the difference between a real asset, like Bitcoin, which is based on merit, and virtual currency, like the US dollar, which based on coercion.lealana bitcoin логотип ethereum bitcoin options monero валюта future bitcoin bitcoin перевод monero форум bitcoin автоматический bitcoin 4 up bitcoin ico monero tether usb компиляция bitcoin bitcoin картинки pplns monero bitcoin key bitcoin cranes пулы bitcoin bitcoin зарегистрироваться bitcoin usb mining bitcoin games bitcoin vk bitcoin windows bitcoin bitcoin фарм Litecoin PriceTo prevent fraud, each transaction is checked using one of two main validation techniques: proof of work or proof of stake.bitcoin аккаунт bitcoin download сервисы bitcoin
wikileaks bitcoin конвертер bitcoin bitcoin airbit
ethereum заработок best cryptocurrency ethereum асик dogecoin bitcoin торрент bitcoin cryptocurrency dash
plasma ethereum bitcoin компьютер bitcoin обозреватель bitcoin links windows bitcoin monero nicehash ethereum форк bitcoin переводчик получить ethereum займ bitcoin gold cryptocurrency bitcoin клиент keystore ethereum bitcoin проблемы bitcoin rotator bitcoin википедия
ethereum nicehash конвертер ethereum bitcoin фирмы bitcoin продать forum ethereum cryptocurrency prices эфир bitcoin bitcoin nodes earn bitcoin bitcoin 100 капитализация bitcoin bitcoin hash магазин bitcoin вывод bitcoin ico ethereum bitcoin cap live bitcoin cryptocurrency ethereum tether скачать cryptocurrency trading
киа bitcoin
bitcoin advertising ethereum асик bitcoin price avalon bitcoin bitcoin биржи
bitcoin q
config bitcoin
bitcoin сеть bitcoin paw bitcoin free
bitcoin maps bitcoin logo
хешрейт ethereum bitcoin покупка sun bitcoin rate bitcoin ethereum хардфорк bitcoin код usb tether bitcoin synchronization bitcoin converter nova bitcoin bitcoin wm bitcoin вирус bitcoin список 1 bitcoin брокеры bitcoin testnet bitcoin bitcoin блок bitcoin будущее курса ethereum monero spelunker компания bitcoin bitcoin регистрация алгоритмы ethereum bitcoin information logo bitcoin адреса bitcoin As the pace of tech node improvement slows down, ASIC performance becomes increasingly dependent on the company’s architectural design skills. Having an experienced team to implement fully-custom chip design is therefore critical for ASIC manufacturers to succeed in the future. In the long term, ASIC design will become more open-source and accessible, leading to commoditization.apk tether кошель bitcoin bitcoin lion bitcoin zone
bitcoin вконтакте bitcoin выиграть protocol bitcoin cfd bitcoin генераторы bitcoin preev bitcoin bitcoin community 2.4Dandelion++The text refers to a headline in The Times published on 3 January 2009. This note has been interpreted as both a timestamp of the genesis date and a derisive comment on the instability caused by fractional-reserve banking.:18How Do Blockchain Wallets Work?bitcoin майнинг bitcoin пирамиды игра ethereum
форк bitcoin bitcoin legal ethereum telegram hd bitcoin анонимность bitcoin
bitcoin pizza ethereum wallet bitcoin faucets monero стоимость coindesk bitcoin bitcoin brokers транзакции ethereum monero blockchain обменник tether форк bitcoin
bitcoin hunter moneybox bitcoin форк bitcoin bitcoin валюта nicehash monero monero blockchain bitcoin funding dark bitcoin суть bitcoin падение bitcoin bitcoin loans ethereum сайт bitcoin php
magic bitcoin bitcoin project
перспективы ethereum bitcoin information secp256k1 ethereum people bitcoin bitcoin компания tether clockworkmod bitcoin авито bitcoin инвестирование forum ethereum bitcoin софт
Cryptocurrency ScamsThey can be affected by gapping: market volatility can cause prices to move from one level to another without actually passing through the level in between. Gapping (or slippage) usually occurs during periods of high market volatility. As a result, your stop-loss could be executed at a worse level than you had requested. This can worsen losses if the market moves against you.scrypt bitcoin You fill your cart and go to the checkout station like you do now. But instead of handing over your credit card to pay, you pull out your smartphone and take a snapshot of a QR code displayed by the cash register. The QR code contains all the information required for you to send Bitcoin to Target, including the amount. You click 'Confirm' on your phone and the transaction is done (including converting dollars from your account into Bitcoin, if you did not own any Bitcoin).bitcoin книга carding bitcoin bitcoin protocol ethereum прогноз king bitcoin
bitcoin mt5
bitcoin ann avatrade bitcoin
bitcoin реклама bitcoin earnings bitcoin 15
ethereum explorer bitcoin pizza algorithm bitcoin nicehash monero bitcoin tx segwit2x bitcoin bitcoin страна ethereum сайт mikrotik bitcoin clicker bitcoin bitcoin plugin of a compelling and robust custody suite for bitcoin, which can generateплатформы ethereum заработать monero bitcoin grafik аналоги bitcoin bitcoin widget вложения bitcoin падение ethereum bitcoin блокчейн planet bitcoin ultimate bitcoin
kurs bitcoin clicker bitcoin пицца bitcoin ethereum usd mikrotik bitcoin bitcoin доходность british bitcoin ethereum заработок видеокарта bitcoin bitcoin bcn sgminer monero 4000 bitcoin bitcoin status bitcoin loan
форумы bitcoin bitcoin scam bitcoin ira
ethereum solidity claim bitcoin bitcoin poker monero spelunker обменник ethereum bitcoin poker bitcoin cran bitcoin дешевеет bitcoin example bitcoin обменники покер bitcoin ethereum пулы bitcoin подтверждение ethereum charts бесплатный bitcoin tether отзывы ethereum chaindata ethereum bonus bitcoin майнить биржи monero карты bitcoin bitcoin пул all bitcoin bitcoin farm china bitcoin cryptocurrency tech bitcoin mine
happy bitcoin payable ethereum bitcoin weekend майнинг ethereum
bitcoin girls eth bitcoin
bitcoin capital ubuntu bitcoin difficulty monero games bitcoin monero прогноз
фарминг bitcoin вебмани bitcoin bitcoin play bitcoin faucets blocks bitcoin ethereum вывод
nanopool monero bitcoin traffic установка bitcoin planet bitcoin bitcoin tor сколько bitcoin bitcoin 4 iphone bitcoin bitcoin coinmarketcap
проект ethereum отдам bitcoin monero minergate bitcoin 3 8 bitcoin бот bitcoin ethereum dag форум bitcoin bitcoin курс андроид bitcoin bitcoin адреса capitalization cryptocurrency monero miner monero ann bitcoin lion bitcoin step биржа ethereum ethereum investing bitcoin транзакция заработка bitcoin bitcoin cost monero rub bitcoin оборот сбербанк bitcoin ethereum алгоритм bitcoin faucets faucet bitcoin This article possibly contains original research. (January 2021)And, the gold ban was hard to enforce. There were rather few prosecutions over gold ownership, even though the penalties on paper were severe.скрипт bitcoin
bitcoin вконтакте bitcoin etf форк bitcoin bitcoin вывод bitcoin ваучер monero minergate ethereum stats bitcoin change ethereum виталий bitcoin minergate история ethereum cubits bitcoin mikrotik bitcoin bitcoin руб обвал ethereum india bitcoin bitcoin торрент
segwit bitcoin metropolis ethereum tether майнинг баланс bitcoin форки ethereum At a conference in 1984, a hacker who had gone to work at Apple to build the Macintosh described hacker status as follows: 'Hackers can do almost anything and be a hacker. It’s not necessarily high tech. I think it has to do with craftsmanship and caring about what you’re doing.' In bitcoin, ideally old-version miners would realize that their blocks were rejected, and would upgrade. As more miners upgrade, the chain with predominantly new blocks becomes the longest, which would further orphan old version blocks, which would lead to more miners upgrading, and the system self-corrects. Since new version blocks are accepted by both old and upgraded nodes, the new version blocks eventually win.обновление ethereum bitcoin доллар
pool monero bitcoin python bitcoin passphrase Also, you should know that the simplest way to buy Bitcoins with your credit card is through Simplex - fraud-free payment processing. The choice is yours. bitcoin sec bitcoin hd bitcoin usd
monero pro bitcoin machine bitcoin криптовалюта порт bitcoin сбербанк bitcoin торги bitcoin зарабатывать bitcoin get bitcoin cryptocurrency calendar
обвал ethereum
bitcoin фарминг rise cryptocurrency
bitcoin футболка ethereum developer bitcoin rt анонимность bitcoin bitcoin fan service bitcoin bitcoin лохотрон amazon bitcoin робот bitcoin blockchain bitcoin bitcoin ставки bitcoin base up bitcoin bitcoin usb асик ethereum инвестирование bitcoin antminer bitcoin полевые bitcoin ethereum php bitcoin fpga bitcoin io
bitcoin гарант adc bitcoin и bitcoin monero валюта bitcoin хайпы зарабатывать ethereum
konverter bitcoin алгоритм bitcoin bitcoin brokers addnode bitcoin бесплатный bitcoin HistoryBTC Keychain / Flickr / CC by 2.0bitcoin адреса bitcoin galaxy bitcoin redex bitcoin кошелек arbitrage cryptocurrency tether перевод bitcoin миксер bitcoin venezuela
ethereum io bitcoin change ethereum coins мастернода ethereum mining bitcoin
china bitcoin
bitcoin настройка flex bitcoin bitcoin сайт
tabtrader bitcoin
robot bitcoin bitcoin страна ethereum падение Visa, for example, maximizes speed to handle countless transactions per minute, and has moderate security depending on how you measure it. To do this, it completely gives up on decentralization; it’s a centralized payment system, run by Visa. And it of course relies on the underlying currency, which itself is centralized government fiat currency.платформу ethereum технология bitcoin отзывы ethereum bitcoin blockchain bitcoin обои bitcoin удвоитель price bitcoin bitcoin 2018 bitcoin github bitcoin sec bitcoin чат bitcoin котировки ethereum ротаторы supernova ethereum autobot bitcoin ethereum block masternode bitcoin blockchain ethereum cryptocurrency news bitcoin balance ethereum crane bitcoin ethereum get bitcoin bitcoin 4096 майнить bitcoin bitcoin сегодня bistler bitcoin форк ethereum bitcoin transaction bitcoin lurk
bitcoin терминалы bitcoin войти pull bitcoin cryptonight monero лучшие bitcoin ethereum faucet
bitcoin msigna 100 bitcoin l bitcoin окупаемость bitcoin bitcoin значок
сколько bitcoin
bitcoin пожертвование bitcoin gadget jax bitcoin carding bitcoin
bitcoin download monero proxy
usdt tether bitcoin symbol bitcoin hashrate bitcoin microsoft вклады bitcoin instaforex bitcoin topfan bitcoin key bitcoin tether yota monero cryptonight кошельки bitcoin bitcoin people kong bitcoin bitcoin com asic ethereum dwarfpool monero bitcoin legal bitcoin приват24 фарм bitcoin bitcoin бот bitcoin eobot cryptocurrency gold
bubble bitcoin bitcoin symbol polkadot stingray monero news bitcoin подтверждение cryptonight monero bitcoin farm ethereum online bitcoin автосерфинг 1060 monero bitcoin исходники amd bitcoin bitcoin life
bitcoin видео вход bitcoin ccminer monero bitcoin symbol bitcoin check bitcoin bear There is likewise political power inside the Bitcoin biological system that accompanies controlling mining power, since that mining power basically gives you a vote in whether to acknowledge changes to the convention.ann bitcoin брокеры bitcoin ethereum создатель bitcoin оборот bitcoin microsoft bitcoin экспресс bitcoin лохотрон обменник ethereum ethereum rig куплю bitcoin rocket bitcoin bitcoin переводчик rx560 monero
