Ripple vs. Bitcoin
Whether you are just starting to invest in cryptocurrency or you’ve already dipped your toes, you’ve more than likely heard of Ripple (XRP) and Bitcoin (BTC).
You’ve probably even stumbled across this page in the hopes of getting an understanding of what makes Ripple and Bitcoin different. Well, it so happens that comparing them is a great way to learn just how different two crypto assets can be.
Let’s take a deeper dive into the difference between Bitcoin and Ripple.
Ripple presented a new way of operating a blockchain’s transaction and records system for payment settlements.
Bitcoin was created as a response to government monetary manipulation, and it seeks to serve as an alternative to traditional government currencies.
To further understand how these two complex networks work, read below for a side-by-side comparison of Ripple vs Bitcoin so you can start to better understand and appreciate the differences yourself.
The difference between Ripple and Bitcoin
XRP was created to complement traditional payments by migrating transactions that occur today within financial institutions to a more open infrastructure.
In order for XRP to work, Ripple built the XRP ledger, a software that introduced a new way of operating a blockchain’s transaction and records system.
Similar to Bitcoin, the XRP ledger allows users to send and receive its XRP cryptocurrency using digital signatures.
Bitcoin is an open-source software that allows its global user base to manage a digital money supply outside the control of any government or central bank.
It was created in response to the 2008 global economic crisis as a means to combat inflation. In fact, the first mined block contained the message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks,” a message many believe signifies the project’s revolutionary intent.
The Bitcoin software enables the computers running it to manage a ledger (the blockchain) that accounts for all transactions made using its currency (BTC) by enforcing a variety of rules.
The Bitcoin blockchain is a full record of the network’s transaction history validated by nodes, or individuals running its software. This ensures that each BTC cannot be copied or modified, and that bitcoins cannot be created or used in a way that is against its rules.
Bitcoins are scarce, divisible and transferable, making them a valuable alternative money.