In the recent past, there have been many mix-ups in the blockchain and cryptocurrency world. We have many cryptocurrencies in the blockchain, and many people find it difficult to tell the difference between these various cryptocurrencies.
For this reason, it now become a common question where people and even you seek for answers to the question “what is the difference between ripple and other cryptocurrencies?”
Ripple happens to be one of the cryptocurrencies that are gaining more presence in the crypto world. What exactly is Ripple? Is there any difference between ripple and other cryptocurrencies? Well, this post will give you the nitty-gritty of what you need to know about Ripple.
What Exactly is Ripple?
Ripple is a popular name that is popular in the crypto world. It is a token that was created to facilitate transactions of funds in the Ripple network between different cryptocurrencies.
It was launched in 2012 to make transactions fast, cheap, and reliable. The token makes it easy to carry out transactions across the border without restriction. In fact, XRP has one of the ambitious goals in the crypto space.
History of Ripple (XRP)
The history of Ripple is quite different from other cryptocurrencies like Bitcoin (BTC) and other individual cryptocurrencies. Most of them were created by an individual. For instance, Bitcoin was created by Satoshi Nakamoto.
In the aspect of Ripple, many people came together to create the technology that enables its proper running and helps the business side of it to grow. These people are co-founders of other businesses too.
Arthur Britto, Jed McCaleb, and Chris Larsen are three noticeable individuals that often credited for the birth of Ripple. Other individuals are David Schwartz and Stefan Thomas.
Arthur Britto is the one that developed the XRP Ledger. David Schwartz was the person that co-authored the Ripple whitepaper with Stefan Thomas. David Schwartz serves as the chief technology officer of Ripple.
How does Ripple works?
RippleNet is the infrastructure of Ripple’s blockchain that enables smooth transactions. The primary mission of Ripple is to enable banks to transact cross-border transactions at low costs within a short period.
Due to this, Ripple provides a better alternative for banks to carry out an international payment system. Most banks use SWIFT (Society for Worldwide Interbank Financial Telecommunication) which takes a long processing time at a high cost. Those that make international payments have many benefits on the Ripple platform.
Is there any difference between XRP and Ripple?
It is very common to see people using Ripple and XRP interchangeably. Are there the same, or is there any difference between the two? Well, the two are not totally the same. It is important to know the difference between the two.
XRP is a cryptocurrency like Bitcoin. On the other hand, Ripple is a for-profit company that develops and promotes XRP. The software behind XRP is XRP Ledger. They also develop other transaction-focused projects. The company insists that XRP and Ripple are not the same entities.
On the company’s website, the company expresses XRP as a less costly, faster, and more scalable digit asset that is better than any other digital asset. According to them, Ripple is engrossed in building a platform that facilitates innovative payment across the payment space.
Key differences between XRP and Other Cryptocurrencies
We have key differences between XRP and other cryptocurrencies in the blockchain. Some of them are:
1. Fast Transaction Confirmation
The concept Ripple uses for a transaction is through unique distribution consensus. The mechanism allows partaking nodes to verify the validity of transactions by carrying out a poll. This facilitates near-instant approval outside the central authority.
2. Speed and Energy Effective
XRP happens to be one of the most reliable cryptocurrencies that are faster than its competitors. When it comes to energy consumption, the consensus system makes it easy to use very little energy compared to other coins like Bitcoin.
3. Low Cost
The fees that are charged as processing fee during a transaction is very low. Despite the intensive way of mining cryptocurrencies, the fast confirmation period makes transaction fees very low. Organizations or individuals are charged with a little portion of XRP.
4. Availability of Coins
In contrast to a coin like Bitcoin which has a fixed amount of 21 million in existence, one billion XRP was released at the start. There is also a gradual release of the coins by the investors after the first release. The coin is available for anyone to transact across the border.
5. Easy to Transact
Individuals or organizations can buy XRP through any convenient channel. You can use peer-to-peer (P2P), centralized exchangers or decentralized exchanges (DEXs) to buy it.
To buy XRP on the P2P channel entails someone who has XRP to purchase the asset directly. To buy the asset on the centralized channel, you pay fiat money like EUR, USD, JPY, etc.
Conclusion – What Is The Difference Between Ripple And Other Cryptocurrencies?
XRP is a reliable coin that enables businesses to perform international transactions with ease. It provides a better alternative to SWIFT that banks are using, which takes a longer processing time. You can buy XRP with ease using any convenient channels.
The difference between XRP and other cryptocurrencies is the mechanism Ripple is using excellent technology to provide reliable, fast, low-cost, and cross-border services to organizations and individuals.