What are the Certain Factors that Makes Bitcoin and Ripple Different From Each Other?
Bitcoin and Ripple, both are a cryptocurrency and are pretty famous in the crypto industry. Being a cryptocurrency there are certain differences that both these currencies share. So before diving into the differences let us know in brief about these cryptocurrencies. Let’s talk about both currencies one by one.
Table of Contents
Bitcoin (BTC) —
Talking about Bitcoin first, Bitcoin is a cryptocurrency that is designed to serve as a method of payment that can either be used for buying and selling any good and service. This currency came into the industry as the first of its nature to exist in crypto history. There are certain things about cryptocurrency that are laid before the world for its usage for different means. After this currency hundreds and thousands of such currencies have come into the crypto world with their very own feature or I would say rather advanced feature.
Talking about ripple, it is also a cryptocurrency that came into the crypto industry in 2014. It is just not a payment network but also has many wide usages. It also serves as a remittance network to facilitate payments across borders, also it serves as a medium for changing currency. The main aim behind the formulation of Ripple as cryptocurrency was to make transfers directly without vias involved for any transaction. It is much faster and cheaper than the usual banking system. For more information you can visit here .
Differences Between Both the Cryptocurrencies
Ripple Is Much Faster Than the Bitcoin
Ripple cryptocurrency is much faster than Bitcoin cryptocurrency. As Bitcoin takes more time to process one transaction, ripple has a transaction record of 1500 per second which is a huge difference. The scalability problem of Bitcoin lies due to the small block size, whereas the ripple has a bigger block size and it has more capacity to process transactions per second at a much higher rate.
Ripple Is Much Cheaper Than Bitcoin
As we discussed, Ripple has more capacity to facilitate transactions, its block size makes it possible. If we talk about the energy consumption which ultimately adds to the cost also is much less if we compare it with Bitcoin which has a huge consumption.
Where on one hand Bitcoin uses blockchain technology, Ripple works through the consensus mechanism which means it has validators that approve the transaction for verification purposes whereas Bitcoin uses a Proof of work algorithm where we have miners that end up creating the coin for the investors.
Both Have Different Tokens
Both Bitcoin and Ripple use different tokens for transaction purposes to allow the transaction across different countries. Bitcoin’s token is BTC whereas Ripple’s token is XRP.
Ripple Serves Different Fields
Ripple is just not a method to facilitate payments but also serves many other purposes like, it can be used as a remittance network which means it can be used as a way to allow the transaction and transfer among different countries whereas Bitcoin can be used as an alternative way to pay for any goods and services.
Ripple can also be used as an exchange whereby you can exchange your cryptocurrency into fiat money.
Hence the above-mentioned points speak about the differences of the ripple cryptocurrency with that of Bitcoin and how they are different from each other.
The bottom line
Hence as said above, the topic talks about the two different cryptocurrencies that are Bitcoin and Ripple. Both currencies are equally famous within their respective spheres but some differences make them apart from each other.