Difference between Ripple XRP and Bitcoin explained
For the many new investors in the cryptocurrency market we will explain these differences and answer the major questions: What exactly is Ripple (or XRP) is and what makes it different from Bitcoin. By far the best known cryptocurrency based on blockchain is still Bitcoin. The total Marketcap of Bitcoin makes it the largest crytpocurrency in the world. Ripple XRP will probably take over the number one position within a few years. But there is more difference between Ripple XRP and Bitcoin.
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Ripple XPR versus Bitcoin
Bitcoin BTC is a digital currency, originally intended as a means of digital payment for goods and services. Ripple XRP on the other hand is a payment settling, and currency exchange system intended for banks and payment networks (like Moneygram or Western Union). The basic idea behind the Ripple currency XRP is to provide a system for direct value transfers. Transfers with XRP can the settled in almost real-time. Ripple XRP is a much cheaper, more secure and faster alternative to transfer systems like the old SWIFT system the banks used until 2018.
Bitcoin is a cryptocurrency based on blockchain technology. That’s antoher major difference between Ripple and other crypto coins: Ripple XRP uses a distributed consensus ledger using a network of validating servers and crypto tokens. This crypto token is called XRP (by most people referred to as “Ripples”).
Ripple network to facilitate cross-border transfers between different countries or currencies runs on the Riplle XRP token. Existing settlement systems generally use currency like Yen, Dollar or Euro for global money transfers. The ‘old’ SWIFT system used by banks money transfers takes time (sometimes up to four days) and large exchange fees. Cross-border money transfers with the XRP within 3 seconds and with a fraction of the costs .
Banks including Fidor Bank, the Commonwealth Bank of Australia, Banco Santander and a consortium of approximatly 61 Japanese banks have have started a implementing applications utilizing the XRapid payment system. All using the XRP cryptocurrency token. Ripple XRapid Network only uses the XRP only token for settle moneytransfer across borders.
There is another major difference to bitcoin, where new coins can be created (mining of bitcoin) . This is the reward for Bitcoin holders who offer computing power to maintain the blockchain network. It’s not possible to mine the Ripple XRP token. 100 Billion XRP coins have been created at its inception.
Ripple has added a smart contract system (escrows) where the company releases 1 billion of its XRP holding to themselves each month as a means of funding the on-going business. Alle the unused Tokens must be placed back into escrow.
Before you decide to buy tokens please always, remember that investing in cryptocurrency or tokens is very speculative and the market is largely unregulated.