Difference Between Ripple vs Bitcoin
Ripple vs Bitcoin in this, Ripple can be defined as a crypto-currency that is taken into use for purposes like settlement of payments, exchange of currencies, and remittance for banking institutions and payment networks with respect to international transactions. In other words, Ripple is used in order to facilitate direct, easy, and fast transfer of financial assets. Ripple is also a more transparent, cheaper, and safer alternative as compared to the other transfer options. Ripple is a technology used for the purpose of initiating online payments, and it is solely used for securing foreign transactions and ensuring that these are executed in real-time and that too at the cheapest costs. Ripple was established by Jed McCaleb and Chris Larsen in 2012.
Bitcoin can be defined as a cryptocurrency (or digital currency) that is taken into use for trading in goods or services with trading parties that are willing to accept Bitcoins as a payment option. In other words, Bitcoin is a cryptocurrency that is meant to be taken into use for making payments for products or services. Bitcoin was initiated in the year 2009 by Satoshi Nakamoto, who happens to be a mysterious individual or a group of individuals. Bitcoin was developed to act as a currency that eliminates the interference of middlemen.
Head to Head Comparison Between Ripple vs Bitcoin(Infographics)
Below are the top 20 differences between Ripple vs Bitcoin:
Key Differences Between Ripple vs Bitcoin
The key differences between ripple and bitcoin are provided and enumerated as follows:
- Ripple’s coins are currency trading and cross-currency payments, whereas the coins used in Bitcoin are digital cash, currency trading, and merchant payments.
- Ripple was developed in the year 2012, whereas Bitcoin was developed in the year 2009.
- Ripple was developed by Jed McCaleb and Chris Larsen, whereas Bitcoin was developed by an unknown individual or a group of individuals named Satoshi Nakamoto.
- Ripple is owned and, at the moment operated by Ripple whereas no one owns Bitcoin.
- The hashing algorithm used in the case of Ripple is RPCA or Ripple Protocol Consensus Algorithm, whereas the hashing algorithm used in the case of Bitcoin is SHA – 256.
- The coin supply in the case of Ripple is a hundred billion, whereas twenty-one million in the case of Bitcoin.
- The energy cost per transaction in the case of Ripple is bare minimum, whereas in the case of Bitcoin is approximately 250 kilowatt per hour.
- Ripple’s primary focus is on initiating payments in any currency, whereas the primary focus of Bitcoin is always on new currencies.
- The market cap is 4 percent and 56 percent in the case of Ripple and Bitcoin.
- Ripple is not blockchain technology, whereas Bitcoin operates on blockchain technology.
- Ripple does not support mining purposes, whereas Bitcoin is processor intensive which means the latter requires to initiate reimbursement to miners on account of a higher rate of mining consumption.
- The transaction speed is much faster in the case of Ripple since it hardly takes a minimum of three seconds and a maximum of five seconds, whereas a minimum of ten minutes while a maximum of one hour is taken in the case of a Bitcoin transaction.
- Ripple is cheaper as compared to Bitcoin. The total transaction costs incurred in the execution of Ripple transactions are $ 0.004, whereas the total transaction costs incurred in the execution of Bitcoin transactions are $40.
- Bitcoin payment does not require any sort of third-party interference, whereas transferring of payments in Ripple requires trusted gateways or middlemen interference.
Comparison Table Between Ripple vs Bitcoin
Given below are the major difference between Ripple vs Bitcoin:
| Basis of Comparison |
Ripple |
Bitcoin |
| Ownership | Private company – Ripple is owned and presently operated by Ripple. | Publicity – Bitcoin is not owned. |
| Decentralized or interference of middlemen | Transferring of payments through Ripple will necessarily require trusted gateways or middlemen interference. | Bitcoin payment does not require middlemen interference. |
| Block time | Four seconds. | Fifteen seconds. |
| Transaction fees | Ripple requires a negligible amount of transaction fees. The total transaction costs that are incurred in Ripple transactions are $ 0.004. | Bitcoin has a higher amount of transaction fees. The total transaction costs that are incurred in Bitcoin transactions are $40. |
| Maximum supply | 100,000,000,000. | Supply is not at all fixed. |
| Block reward | There is no block reward in Ripple since it is premised. | 2 Ether (ETH) |
| Throughput | 1500 TPS | 15 to 20 TPS |
| Year of foundation | Ripple was created in the year 2012. | Bitcoin was created in the year 2009. |
| Developers | Ripple was developed by Jed McCaleb and Chris Larsen. | Bitcoin was developed by Satoshi Nakamoto, who happens to be a mysterious individual or a group of individuals. |
| Medium | Any currency in the case of Ripple. | Crypto-currency only. |
| Blockchain technology | Ripple does not use blockchain technology. | Bitcoin functions on the basis of blockchain technology. |
| Mining | Ripple is not developed for the purpose of mining at all. | Processor intensive – Bitcoin is mined, which means it requires to make a reimbursement to miners for a higher rate of energy consumption. |
| Transaction speed | Ripple transaction confirmation takes only five seconds. | Bitcoin transaction confirmation takes an average of ten minutes. Sometimes it may even take an hour. The transaction speed is highly dependent on the fee. |
| Total number of transactions per second | 1.500 | 10 approximately. |
| Hashing algorithm | RPCA or Ripple Protocol Consensus Algorithm. | Proof-of-work or SHA – 256. |
| Coin supply | Hundred billion. | Twenty-one million. |
| Energy cost per transaction | Bare minimum. | Approximately 250 kilowatts per hour. |
| Primary focus | The primary focus of Ripple is on payments in any form of currency. | The primary focus of Bitcoin is on new currencies. |
| Market cap | Four percent. | Fifty-six percent. |
| Transactions made through | Currency issued by Ripple Labs (XRP). | Blockchain or mining (BTC). |
Conclusion
Ripple can be defined as a mechanism that serves various functions, such as the settlement of payments, currency exchange, and remittance, not just for banking companies but also for payment networks. In other words, Ripple is a real-time payment settlement, remittance network, and currency exchange system Ripple. On the other hand, Bitcoin can be defined as a crypto-currency used for payments with respect to goods or services. In other words, Bitcoin is a decentralized crypto-currency used for peer-to-peer networking.
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