As per the reports, the bitcoins are the largest cryptocurrency across the world marked by the market cap. Most of the people have heard about it, many are aware of its facts and figures, and as you turn on the TV, you will find someone mentioning this term in certain sections. Isn’t it? But, Ripple is quite different from it, and mainly has better functionalities than the bitcoins.
Sadly, being the fourth largest cryptocurrency in the world, many people are still not aware of this term and didn’t know about its applications and usage. So, might be wondering what is Ripple is all about? Well, like the Ethereum and bitcoins, Ripple would also be hard to understand as it is pretty different from these cryptocurrencies.
Furthermore, Ripple is defined as both a cryptocurrency as well as a payment a network, which was created in the year 2012. Moreover, Ripple is older than the bitcoins. It wasn’t released in the year 2012; rather, the original version of it was created in 2004, as per the reports of the Bitcoin Magazine.
But, at that time, it didn’t go really good, though, until a professional management team was placed in the company that included the founder of MtGox Jed McCaleb, and co-founder of E-Loan Chris Larsen. The RippleNet helps to connect with various banks as well as with other big institutions, which allows them to transfer the money and other necessary assets through the passage of networks.
The best part of this system is, it records all the transactions that are passing through the network on the decentralized XRP ledger. The Ripple XRP is the currencies that are used in the payment network for the transaction, minimizes the money and time that are linked to the cross-border payments systems.
The systems that are supposed to be processed in the networks take only four seconds for the execution. And if you compare this other such as Ethereum, then it takes even more than two minutes, and most shockingly, Bitcoins takes an hour for the execution. The traditional systems are no more on the scene as it takes more than five days.
The currencies that are coming under the Ripple is also scalable as it can handle 1,500 transactions per second, and this makes the Ripple cryptocurrency unique in certain sections. In case of the bitcoin, it can only handle seven in the same timeframe, and this is the vital reason why bitcoin cash exists now.
Also Read: Everything You Need To Know About Bitcoin
As per the present day scenario, everyone wants to pay less and in return wants more. Isn’t true? Every business heads are searching for better opportunities in the market, and Ripple is the most convenient one as that offers very low transaction fees to the customers. Being the most relevant system and having so much of advantages, this system has already been adopted by 75% or more financial institutions in the world.
Difference between Ripple and Bitcoin
There is a main difference between the Bitcoin and Ripple. Ripple is the type of payment network that is used for the financial institutions as well as a competitor for the systems such as SWIFT. This can also be traded, but it has been used neither intended to be a part of the process where users can buy the online stuff, whereas, the bitcoins are those stuff that targets to become globally famous and have adopted the currency that could easily enhance or improve the conventional money.
The faster speed of transaction and easier systems for the financial process embraces the virtual currency, and this has lead to increase the demand of Ripple in the marketplace and has drastically changed over the past few days. The value of Ripple has, therefore, changes and expected to reach the place where Bitcoin is standing, and soon, as per the predictions, more relevant options will be introduced for the process, and the potentiality of Ripple will touch the sky. And the present scenario, Ripple can hold the market for the longer period, at least up to the end of 2018.
Marketers observe that number of projects are supposed to be recorded and implemented with other algorithms such as ETH, XRP and might take the next big coin as well. Ripple is likely to go up day by day for one or two notches that are related to the cryptocurrencies, and these reasons are essential to understanding.
The first reason would be due to the sheer dollar volumes that are used to separate each of these currencies from each other and to find the major differences among them regarding the market caps. As per the reposts, Bitcoins are at over $191 billion, Ripple is at $35 billion, and Ethereum is at $84 billion. The second reason would be that Ripple is mostly used for the trade of assets, and these are never meant for the day to day spending.
And finally, the third reason is that Ripple cannot be purchased with the fiat currencies, and needs to buy the existing cryptocurrency such as the Ethereum or Bitcoin to purchase the XRP. These three reasons are going to enhance the demand for Ripple across the world and will solidify the current positions and will take the currencies to the top position of the market.
Why choose Ripple?
Bitcoins are not new to the markets, and these are the innovative ways to make the payments that are bypassed by the financial institutes and banks. Whereas, Ripple, on the other side, is trying to work with banks, actually, it is working to some extends, and have the target to speed up the process of the cross-border payments systems as well as to reduce the fees.
Some portion of the Ripple is going against the policy of the cryptocurrencies, and this is the reason for which may don’t like the standard. Apart from this, another criticism of the Ripple XRP is associated with the decentralization process as it is not coming under this category like the other cryptocurrencies such as Bitcoins.
The companies are therefore creating the coins and launch them too to own more than the expected supply. Often, people ask is it good to invest in Ripple trade? Well, as per the reports are concerned. Currently, Ripple has traded near about $0.25, and this makes it less valuable than the other like Ethereum and Bitcoins.
Unlike the other cryptocurrencies, you cannot mine Ripple. No one can be sure about it whether to invest it or not, as the value of the cryptocurrency has risen to a great extent, and it’s very hard to estimate when the price will fall or rise. In many ways, Bitcoin and Ripple are same, but Ripple’ XRP is defined as the unit that is digitally designed based on the formulas of mathematics as well as has the limited number of units, which can be mined.
In addition to this, Ripple could give more ways to connect with the users in the forms of currencies. It always promises to increase the stability and expedited transactions. In case of the distributed network, Ripple doesn’t rely on the single firm to control and manage, and most importantly, it helps in ensuring secure transaction database.
Furthermore, there will be no waiting blocks for the confirmation as well as for the transaction confirmations, and it can even go through the network quickly. Another benefit of this would be using the peer-to-peer process during the absence of the “central target or in the failure time of the system,” Ripples works effectively.
Key factors that make Ripple different from others
The most vital to notice is that Ripple is both, a centralized cryptocurrency and decentralized transaction network. This allows the system to accept all types of token that are representing the fiat currency, commodity or cryptocurrency, or any other unit, which has the value of mobile minutes and frequent fliers. Ripple is never considered as a real competitor of Bitcoin.
Rather, it is the core part or idea that offers you the cryptocurrencies and other relevant tokens provides you different ways to link those to various forms of the currencies. The best things about the system are that it offers you a fast and secure process for confirming the transactions.
This approach has been used by many of the companies across the globe such as UBS, UniCredit, and Santander. And this trend is becoming more and more famous, and more companies are trying to adopt it soon. It has a huge demand in the banking sectors, payments networks, and the infrastructure industry.
As per the American bankers, Ripple has many advantages over the other cryptocurrencies, which includes the security and price. Unlike the other cryptocurrencies Bitcoins, Ripple is the digital currency system, where the transactions are verified by skilled and consensus members of the networks, rather than any single member or by a mining process. This is possible because Ripple doesn’t need the Proof of Work in the mining process, and the transaction can be handled effectively and saves lots of money as well.