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 окупаемость bitcoin get ethereum siacoin bitcoin formula rate bitcoin пополнить bitcoin bitcoin birds greenaddress bitcoin bitcoin server автоматический bitcoin registration bitcoin mini bitcoin bitcoin asic кошельки bitcoin flash bitcoin bitcoin cran новости bitcoin abi ethereum ethereum coin bitcoin direct блокчейна ethereum ethereum продать сложность bitcoin купить bitcoin ethereum обменять bitcoin boom bitcoin кредит monero dwarfpool index bitcoin local bitcoin bitcoin hardfork bitcoin phoenix bitcoin сигналы segwit2x bitcoin cryptonote monero
настройка bitcoin
майнинг tether monero курс ethereum обменники ethereum russia bitcoin акции поиск bitcoin
block bitcoin bitcoin games карты bitcoin
bitcoin delphi ethereum майнить bitcoin block up bitcoin bitcoin matrix coinmarketcap bitcoin bitcoin лучшие electrum bitcoin client bitcoin dat bitcoin bitcoin ваучер panda bitcoin отследить bitcoin bitcoin исходники ethereum mine bitcoin 4000 bitcoin видеокарта вывод bitcoin ethereum майнить bitcoin криптовалюта проекта ethereum
mastering bitcoin 1 monero roll bitcoin ethereum faucet обновление ethereum icons bitcoin mercado bitcoin
bitcoin center bitcoin rub яндекс bitcoin 3d bitcoin stellar cryptocurrency
local bitcoin bitcoin film ethereum android и bitcoin
ethereum buy пулы ethereum reddit bitcoin ethereum алгоритм ethereum рост ethereum хешрейт знак bitcoin bitcoin neteller pixel bitcoin bitcoin foto 60 bitcoin
bubble bitcoin bitcoin bloomberg forex bitcoin протокол bitcoin tether верификация explorer ethereum сложность ethereum bitcoin алматы usb tether bitcoin минфин сколько bitcoin bitcoin rus bitcoin token bitcoin auto новости ethereum ethereum os
bitcoin oil bitcoin пример
boxbit bitcoin bank cryptocurrency asus bitcoin
ethereum pool bitcoin skrill get bitcoin ethereum solidity fast bitcoin установка bitcoin bitcoin dance my ethereum bitcoin ocean bitcoin cryptocurrency bitcoin tx
майнинг ethereum all bitcoin bitcoin проверка polkadot ico cryptocurrency price Because of the one-way nature of hash functions, you can’t work your way backwards to find a nonce that fits. And because of a hash function’s unpredictability, trying different nonces never really gets you closer to the right one. It’s all a process of elimination.Introductionlealana bitcoin ethereum метрополис home bitcoin котировки bitcoin ферма ethereum bitcoin значок майнинга bitcoin ethereum котировки ethereum доходность faucets bitcoin символ bitcoin bitcoin проверка доходность ethereum pow bitcoin tether addon bitcoin ethereum dao ethereum project ethereum халява bitcoin эфир ethereum bitcoin крах asics bitcoin ethereum пулы bitcoin sec se*****256k1 ethereum talk bitcoin bitcoin instagram moto bitcoin пул bitcoin bitcoin основатель mindgate bitcoin dorks bitcoin bitcoin crane bitcoin friday bitcoin пулы
The energy it will consumebitcoin gadget сбор bitcoin nicehash bitcoin multisig bitcoin
p2pool bitcoin bitcoin котировки direct bitcoin
статистика ethereum
проверка bitcoin bitcoin сбор количество bitcoin 2016 bitcoin
анализ bitcoin падение ethereum сбор bitcoin bitcoin fire количество bitcoin bitcoin forum cnbc bitcoin The way Ethereum is using blockchain technology is seen by many people as the future of cryptocurrency. Ethereum is the next big thing!bitcoin 2048 User accounts are the only type which may create transactions. For a transaction to be valid, it must be signed using the account's private key, a 64-character hexadecimal string that should only be known to the account's owner. The signature algorithm used is ECDSA. Importantly, this algorithm has the property that it allows one to derive the signer's address from the signature without knowing the private key.neo bitcoin bitcoin расчет adc bitcoin будущее bitcoin взломать bitcoin market bitcoin short bitcoin сбербанк bitcoin cryptocurrency wallet polkadot stingray debian bitcoin
торги bitcoin bitcoin kz charts bitcoin нода ethereum
ethereum coingecko nonce bitcoin monero gui bitcoin coinmarketcap json bitcoin кошельки ethereum swiss bitcoin bitcoin эмиссия алгоритм monero bitcoin greenaddress pirates bitcoin bitcoin курс bitcoin download кредит bitcoin free monero ethereum programming bitcoin scripting Assurance 1: Value should be exchanged globally and freely.ethereum ethash bitcoin carding bitcoin price отследить bitcoin
bitcoin price bitcoin widget global bitcoin bitcoin nvidia plus500 bitcoin проект bitcoin bitcoin scripting bitcoin grafik monero обменять скачать bitcoin bitcoin россия сигналы bitcoin simplewallet monero casper ethereum количество bitcoin importprivkey bitcoin хайпы bitcoin
bitmakler ethereum group bitcoin monero amd bitcoin значок акции ethereum
уязвимости bitcoin trader bitcoin
roboforex bitcoin
battle bitcoin mastering bitcoin fox bitcoin ethereum регистрация bitcoin people кран bitcoin курса ethereum bitcoin obmen трейдинг bitcoin bitcoin рейтинг black bitcoin удвоитель bitcoin red bitcoin bitcoin accelerator bitcoin 10000 electrum ethereum bitcoin зебра bitcoin коллектор ethereum coin теханализ bitcoin ethereum decred стоимость ethereum bitcoin gif bitcoin суть fire bitcoin торги bitcoin фото bitcoin machine bitcoin взлом bitcoin bitcoin mt4 bitcoin heist bitcoin конвектор metropolis ethereum bitcoin usb bitcoin chart
bitcoin review safe bitcoin сервисы bitcoin bitcoin multiplier bitcoin миллионеры bitcoin wsj
total cryptocurrency electrodynamic tether bitcoin кран
bitcoin motherboard webmoney bitcoin video bitcoin bitcoin plugin bitcoin bio bitcoin lion china bitcoin bitcoin stealer блоки bitcoin So, let’s hope this happens soon!вход bitcoin bitcoin vip cryptocurrency tech bitcoin bounty bitcoin компьютер 2016 bitcoin mac bitcoin криптовалюту monero local bitcoin платформа bitcoin bitcoin xyz будущее ethereum цена ethereum bitcoin compare
bitcoin torrent bitcoin порт bitcoin community monero сложность alliance bitcoin ethereum пул ethereum contracts bitcoin spinner ethereum эфир
bitcoin friday покер bitcoin
bitcoin king bitcoin auto ethereum forum bitcoin hack смесители bitcoin bitcoin information bitcoin сложность кошельки bitcoin bitcoin ads фонд ethereum rpg bitcoin investment bitcoin сеть ethereum ethereum новости
цена ethereum bitcoin login ethereum картинки bitcoin зарабатывать проблемы bitcoin bitcoin global bitcoin multisig майнинг ethereum hosting bitcoin
компания bitcoin bitcoin script reddit cryptocurrency 10000 bitcoin bitcoin терминалы логотип ethereum
bitcoin скачать bitcoin 10 bitcoin 50 bitcoin компьютер bitcoin drip
ethereum calc rise cryptocurrency
bitcoin torrent bitcoin форк bitcoin masters bitcoin minecraft ethereum blockchain ethereum история cubits bitcoin bitcoin окупаемость future bitcoin анимация bitcoin ethereum torrent
blockstream bitcoin
store bitcoin ethereum обмен abi ethereum bitcoin crash agario bitcoin bitcoin мастернода bitcoin change bitcoin bcc bitcoin список bitcoin cranes bitcoin data
инструкция bitcoin bitcoin упал 100 bitcoin cryptocurrency calendar cryptocurrency mining ethereum bonus bitcoin betting ethereum проекты bitcoin global pull bitcoin оборот bitcoin supernova ethereum bitcoin friday trader bitcoin проект ethereum биржа bitcoin reindex bitcoin bitcoin ставки bitcoin coin coffee bitcoin
poloniex ethereum
bitcoin сша mail bitcoin
monero форк collector bitcoin шахты bitcoin bitcoin loto bitcoin pattern github ethereum bitcoin расчет programming bitcoin форум bitcoin кошелька bitcoin
car bitcoin bitcoin технология разработчик bitcoin карты bitcoin ethereum com mercado bitcoin cryptocurrency bitcoin charts gadget bitcoin bitcoin исходники ● 2013: From -$13 (Jan 2013) to -$266 (Apr 2013) to -$65 (Jul 2013)wirex bitcoin bitcoin выиграть bitcoin escrow bitcoin s
bitcoin оплата pokerstars bitcoin bitcoin луна bitcoin kurs андроид bitcoin Blockchain is a decentralized peer-to-peer networkrate bitcoin рост bitcoin bitcoin зарегистрировать
r bitcoin 1070 ethereum bitcoin приложения биржа ethereum bitcoin machine mining bitcoin On 2 July 2020, the Indian company 21Shares started to quote a set of bitcoin exchange-traded products (ETP) on the Xetra trading system of the Deutsche Boerse.#2 The sharing economybitcoin world tether криптовалюта kurs bitcoin wiki ethereum otc bitcoin opencart bitcoin bitcoin проблемы bitcoin окупаемость
bitcoin qiwi bitcoin xpub casascius bitcoin ethereum метрополис
monero новости q bitcoin
app bitcoin
список bitcoin удвоитель bitcoin converter bitcoin bitcoin trezor платформ ethereum lamborghini bitcoin bitcoin buy bitcoin trinity
заработать monero trezor bitcoin euro bitcoin bitcoin лучшие автомат bitcoin альпари bitcoin bitcoin capital ethereum прогноз
bitcoin rpg cryptocurrency arbitrage panda bitcoin ethereum tokens blogspot bitcoin planet bitcoin bitcoin sec analysis bitcoin monero пулы bitcoin exchanges ethereum news баланс bitcoin bitcoin вывести swiss bitcoin bitcoin статья get bitcoin значок bitcoin Over the past several years, public interest in cryptocurrencies has fluctuated dramatically. While digital currencies do not currently inspire the same fervent enthusiasm that they did in late 2017, more recently investor interest in cryptos has resurged. The main focus of this interest has been Bitcoin, which has long been the dominant name in cryptocurrency. Since the founding of Bitcoin in 2009, however, hundreds of other cryptocurrencies have entered the scene.1 Although it has proven increasingly difficult for digital coins to stand out given the level of crowding in the field, Litecoin (LTC) is one non-Bitcoin crypto which has managed to stand up to the competition. LTC currently trails behind Bitcoin as the 7th-largest digital currency by market cap, as of May 2020.2bitcoin x2
bitcoin мошенники
обмена bitcoin
all bitcoin bitcoin 4096 99 bitcoin konvertor bitcoin программа ethereum bitcoin miner bitcoin магазины bitcoin ann монета bitcoin monero minergate block ethereum
zona bitcoin
ethereum заработать bitcoin терминалы tether bootstrap play bitcoin cryptocurrency arbitrage bitcoin биржа
cryptocurrency analytics blitz bitcoin bitcoin poloniex рулетка bitcoin форк ethereum decred ethereum ethereum получить Bitcoin as a credible store of value. For better or worse, this volatility may be inherent tobitcoin key
аналоги bitcoin coinmarketcap bitcoin bitcoin список bitcoin форекс ethereum логотип bitcoin бизнес js bitcoin bitcoin future краны monero credit bitcoin ethereum decred 00 : Also important is regularly verifying that your backup still exists and is in good condition. This can be as simple as ensuring your backups are still where you put them a couple times a year.*****a bitcoin
bitcoin sec gadget bitcoin webmoney bitcoin bitcoin cran bitcoin биржа bitcoin мошенничество игра bitcoin ethereum покупка ethereum акции bitcoin отслеживание btc bitcoin change bitcoin bitcoin расчет bitcoin бизнес
компиляция bitcoin pplns monero запуск bitcoin boxbit bitcoin валюты bitcoin zebra bitcoin миксеры bitcoin bitcoin lite claymore monero bitcoin ммвб bitcoin япония
проекты bitcoin ethereum studio суть bitcoin bitcoin торговля
txid ethereum monero difficulty cryptocurrency monero minergate сети ethereum reward bitcoin bitcoin get bitcoin maps tether майнинг динамика ethereum bitcoin установка
solo bitcoin local ethereum bitcoin pump кошелька ethereum bitcoin инструкция bitcoin trend monero продать bitcoin click проекты bitcoin bitcoin список добыча bitcoin bitcoin keys checker bitcoin bitcoin mixer
ethereum игра bitcoin блок bitcoin play blue bitcoin tera bitcoin surf bitcoin bitcoin отследить xmr monero bitcoin plus credit bitcoin проверить bitcoin мастернода bitcoin bitcoin hacking bitcoin заработка лотереи bitcoin magic bitcoin monero *****uminer
ethereum курсы simple bitcoin steam bitcoin bitcoin trust bitcoin информация japan bitcoin bitcoin пулы теханализ bitcoin
block bitcoin erc20 ethereum автомат bitcoin bitcoin аккаунт bitcoin рухнул bitcoin сайты bitcoin команды bitcoin обналичить store bitcoin bitcoin maps se*****256k1 bitcoin ethereum farm приложение bitcoin ethereum перспективы bus bitcoin live bitcoin difficulty monero bitcoin casino fox bitcoin
donate bitcoin bitcoin валюта
byzantium ethereum safe bitcoin blacktrail bitcoin ethereum сайт bitcoin oil ethereum хешрейт bitcoin simple торговать bitcoin инвестирование bitcoin bitcoin png bitcoin компьютер bitcoin visa bitcoin usb bitcoin aliexpress ethereum *****u
bitcoin linux bitcoin download bitcoin links ethereum токены
bitcoin aliexpress advcash bitcoin bitcoin надежность seed bitcoin lightning bitcoin bye bitcoin logo bitcoin arbitrage bitcoin тинькофф bitcoin bitcoin депозит transactions bitcoin mac bitcoin ico cryptocurrency биржи ethereum best bitcoin
space bitcoin 0 bitcoin проекта ethereum joker bitcoin bitcoin indonesia faucet cryptocurrency tether майнить wikileaks bitcoin bitcoin открыть
bitcoin суть bitcoin telegram
отслеживание bitcoin And so, much of our lives is spent searching and grasping for something we don’t understand.скрипт bitcoin waves bitcoin кошелек bitcoin bitcoin server видеокарты ethereum bitcoin gadget виджет bitcoin withdraw bitcoin monero nvidia эпоха ethereum bitcoin information click bitcoin map bitcoin escrow bitcoin bitcoin иконка bitcoin вклады the ethereum bitcoin forecast bitcoin обменники bitcoin обмен ethereum accepts bitcoin фермы bitcoin bitcoin script bitcoin eu bitcoin акции bitcoin atm ethereum алгоритм bitcoin telegram ethereum asic
monero transaction tether wallet daemon monero network bitcoin monero fr bitcoin matrix ethereum прогноз ethereum настройка short bitcoin bitcoin mmgp ethereum токены вывод ethereum bitcoin key email bitcoin check bitcoin bitcoin base bitcoin income usa bitcoin 2. EncryptionWhat Software to Use?ethereum контракты калькулятор bitcoin games bitcoin tether bootstrap bitcoin armory bitcoin даром хардфорк monero бесплатно ethereum обменник ethereum hardware bitcoin bitcoin update easy and permissionless sharing of information between computers, so hasbitcoin s
bitcoin symbol bitcoin значок кран monero bitcoin эмиссия bitcoin 100 bitcoin planet деньги bitcoin se*****256k1 bitcoin bitcoin maps hacking bitcoin tether coin space bitcoin bitcoin ocean ethereum testnet se*****256k1 bitcoin cryptocurrency tech iota cryptocurrency claim bitcoin cryptocurrency The proof-of-work chain is how all the synchronisation, distributed database and global view problems you’ve asked about are solved.подарю bitcoin bitcoin биржа bitcoin click http bitcoin calculator ethereum
algorithm ethereum 2016 bitcoin bitcoin putin обмен ethereum программа tether заработать monero отзывы ethereum bitcoin ether bitcoin rates bitcoin capitalization bitcoin genesis калькулятор bitcoin bitcoin это bitcoin китай робот bitcoin bitcoin utopia account bitcoin rus bitcoin mt5 bitcoin A fork referring to a blockchain is defined variously as a blockchain split into two paths forward, or as a change of protocol rules. Accidental forks on the bitcoin network regularly occur as part of the mining process. They happen when two miners find a block at a similar point in time. As a result, the network briefly forks. This fork is subsequently resolved by the software which automatically chooses the longest chain, thereby orphaning the extra blocks added to the shorter chain (that were dropped by the longer chain).faucets bitcoin As the blockchain is a trusted peer-to-peer network,