Bitcoin vs Ripple

Over the past few weeks, there has been a fair bit of confusion on cryptocurrencies, digital assets, and tokens. Even though there are distinct similarities between the three, now would be a good time to take a closer look at what Ripple – or XRP – and Bitcoin are trying to achieve. Comparing these two directly is quite interesting, although it is important to remember they are completely different projects in the end.

2. Bitcoin

Most people active in the world of cryptocurrency and digital assets have heard of Bitcoin. It is a peer-to-peer cryptocurrency focusing on decentralization. It is also a payment method for both consumers and merchants alike. Completing smaller payments remains a bit of a challenge, although the Lightning Network may – hopefully – alleviate those concerns some day.

Bitcoin is a cryptocurrency in its truest form, issued on a blockchain through the process we know as “mining.” It has a global reach and continues to make a lot of headway all over the world. It is also a currency without any real governance, even though mining pools are responsible for validating transactions. Some people will argue the mining pools make Bitcoin less decentralized than it should be since a few pools control the majority of the network’s mining power.

Perhaps the biggest drawback to Bitcoin is how it takes 10 minutes – or sometimes, hours and days – to fully settle a transaction. This is mainly due to the current block size limit and all payments occurring on-chain. These technical challenges may some day be resolved, though. Bitcoin is a proper currency for people who want to be free of banks and traditional finance.

1. Ripple

Ever since the Ripple project was launched, a lot of people have been opposing the idea. Then again, Ripple – and its XRP currency – are often wrongfully labeled as a cryptocurrency, since that is not entirely true. Ripple’s XRP token is a digital asset issued on a distributed ledger. It also shares some decentralization traits, although on a much smaller scale compared to Bitcoin.

All XRP transactions pass through nodes and validators, similar to Bitcoin. However, on the Ripple network, those transactions do not rely on the mining protocol. That is not surprising since it is impossible to mine XRP whatsoever. Ripple also has a higher degree of governance, as the Ripple Consensus ledger relies on institutional validators run by global banks and a few other institutions.

One thing Ripple provides the Bitcoin network cannot – in its current form – is a lightning-fast settlement speed. The consensus mechanism used by the Ripple Consensus ledger settles transactions in mere seconds, assuming the transaction took place using the XRP asset. It is evident Ripple can’t be put in the same category as bitcoin, but that doesn’t mean it can’t be successful. It is not a digital asset most diehard cryptocurrency users would like to have in their portfolio, but that is understandable.

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  • Joe Tattooski

    Fuck Xrp ill use it like a two cent hooker just to obtain btc and pump my baby ETH

    • AR

      lol i like this guy

    • Pete M.

      awe you must have forgot to buy some when it was below 1/2 cent lol

      • Joe Tattooski

        No i had 18k or .26 btc invested at 550 satoshis and sold off xrp and made 3 btc and invested again in the king Ethereum and i started buying ETH at $7…My balance is 6.25 btc and growing 🙂

        • CryptoLife

          XRP Is pretty cheap at the moment (after the recent plunge). Buy back in.

          • Akande Oyinloye Michael

            Where can I buy XPR?

          • CryptoLife

            Poloniex or Gatehub (.net). STart by buying bitcoin on coinbase, then transfer the bitcoin to Poloniex. I also believe Kraken now offers USD to XRp trades.

          • Akande Oyinloye Michael

            I have coinbase account but doesn’t offer XRP, and I have 100$ worth of bitcoin. Also I do not really understand how Kraken trade USD with XRP.

          • CryptoLife

            There are rumor of coinbase accepting XRP one of these days (we are all hoping they are true). I dont use Kraken (only Poloniex, Coinbase and Gatehub.net).

          • FakaLakaDingDong

            Not liking poloniex much right now. They only have 2k USD daily limit. How the hell is anyone with serious capital supposed to withdraw from there? Even if you go level 2 verification, your limit us still only $25k. People that end up with millions are going to have a long and painful extraction process.

          • CryptoLife

            you can step up your verification levels which in turn, increases your withdrawal limits as well as you purchasing limits (per day/week limits).

  • Alano

    That was a nice introduction, but where’s the article???

  • CryptoLife

    At least explain to people that crypto fanboys hate ripple only because ripple works with banks instead of against banks. Ripple is better than Bitcoin in every way!!!! It’s MANY times faster than bitcoin (it matches and can actually exceed the throughput capacity of Visa), and transaction costs are a fraction of the cost of bitcoins transaction costs, which have sky rocketed as of late. Honestly, Bitcoins only saving grace is that it was the first on the block!

    • Jayvee Reyes

      You got it. But ripple is really better than bitcoin they just hating it because it was backed by big banks.anyway good article.

      • onyekwere iwobi

        do you think its some that will eventually become popular in use

  • Johan Stén

    So what’s the deal with Ripple not being a crypto currency? Isn’t that just, like, an *opinion*?
    I’ve seen that sentiment expressed a lot lately, and I just don’t get it. I’m not particularly fond of Ripple myself as I don’t see any possible use case where it would be used by actual people, outside of inter-bank settlements, but it’s not bloody OneCoin, is it?

  • slipbuck

    Ripple has none of the attributes that makes bitcoin a breakthrough technology…. ZERO…NONE. It’s fun watching the banks pump it and the clueless buy it though.

    • stckpkr7000

      Ignorance is bliss in your case. I’ve been involved with BTC for 4 years now, but it’s incredibly obvious (to anyone who hasn’t fallen in love with just BTC) a better widget exists. Ripple will easily surpass BTC over the coming months. It already has in some metrics. BTC will have a seat at the table for a long time as it has the advantage of being the first in the door, however people need to open their eyes to what’s coming.

  • Fritz Lamarre

    I am new to crytocurrency, and I’m loving it. If the big institution are creating there own crytocurrency much like ripple, I bet you it will rise as fast a Bitcoin, because the big institution have a lot of money backing them up , if they wanted to they could have made XRP started around $10.00. I watch ETH rise to $148.00 today it is an extremely exciting increase from $12.00 about 2 Months ago. I became a believer once I realize my account was tripling in numbers.

  • Pete Steel

    People who bash XRP have to realize, BTC had 10 years to get their problems straightened out but sat on their hands. Now they’re held hostage by 5 Chinese mining pools. The only thing Bitcoin is good for is a money transfer. It is not the future of digital payments. Yes Ripple is big business doing crypto. If you’re in crypto for an investment, then get on board with XRP. If you’re in crypto to fight the control of big banks then you’d better back a different coin than bitcoin because the have peaked and are nothing spectacular.

  • Ethereum Kev

    Why would the banks need to specifically use XRP? The idea of Ripple is the only value I see here. I think there are a lot of confused “investors” snapping up XRP thinking they will have real value in the future. Over 60% of all XRP is held by a private company.

  • CryptoLife

    I own ‘other coins’, but XRP has the most potential to be worth much more than current prices within 2 years.

  • CryptoLife

    There are much better coins out there than MAID!

  • Kyle Kelvas

    Many people love bitcoin because its bubble has grown so large. It was never meant to be used as a form of speculation, which is what most people are currently using it for. It was meant to be used as a way to pay for goods and services quicker, cheaper, and more dependable than what it costs to go through governments, taxes and regulations. Unless there is a widespread acceptance of bitcoin around the world as a global currency, I don’t understand how it would be logical to continue “investing.” Is there something I am missing? I personally see a more trusting investment in the technology behind it all.

  • Purdue Pete

    XRP has many benefits for banks as opposed to the antiquated SWIFT system for international value transfer between financial institutions. The reason Ripple gets so much criticism from the crypto community is because most cryptos (bitcoin, litecoin, monero, etc) were created to circumvent the traditional banking system and need for 3rd parties.