Bitcoin versus Ripple

Bitcoin versus Ripple Blanc Media LTD

XRP's Ripple network centralizes things a bit: while anyone can download its validation software, it maintains what's known as unique lists of nodes that users can select to review their transactions based on which participants are least likely
2021-09-15, by ,

#Bitcoin || #Crypto || #cash ||

Table of contents:



Bitcoin remains a truly public system that does not belong to any particular person, agency, or government. The Ripple network, while decentralized, is owned and operated by a private company of the same name. Although both have their own unique cryptocurrency tokens, the two popular virtual systems lend themselves to different purposes - see this article, for instance: https://nsbroker.com/.

What is Ripple?

Ripple is a payment processing system and a currency exchange network that can process transactions around the world. The idea is for Ripple to act as a trusted agent between two parties in a transaction, as the network can quickly confirm that the exchange was successful. Ripple can facilitate exchanges of a variety of fiat currencies, cryptocurrencies like bitcoin, and even commodities like gold.

"Ripple was designed from the ground up to replace SWIFT [a leading money transfer network] or to replace the settlement layer between large financial institutions," said Pat White, CEO of Bitwave.

Whenever users conduct a transaction over the network, the network deducts a small amount of XRP, a cryptocurrency, as a fee.

"The standard fee for transacting with Ripple is 0.00001 XRP, which is minimal compared to the high fees banks charge for making cross-border payments," said El Lee, a board member of Onchain Custodian. At the end of April 2021, the price of XRP was $ 1.38 per token, which means that the transaction fee is only $ 0.0000138.

What is XRP?

XRP is a cryptocurrency that runs on XRP Ledger, a blockchain developed by Jed McCaleb, Arthur Britto, and David Schwartz. McCaleb and Britto founded Ripple and used XRP to facilitate network transactions. You can buy XRP as an investment, as a currency to exchange for other cryptocurrencies, or as a way to fund transactions on the Ripple network.

In particular, the XRP blockchain works a bit differently than most other cryptocurrencies. Other cryptocurrencies open their transaction books and verification processes to anyone who can solve complex equations quickly, but transactions are secure as most ledger owners must accept verification in order to add them.

Instead, XRP's Ripple network centralizes things a bit: while anyone can download its validation software, it maintains what's known as unique lists of nodes that users can select to review their transactions based on which participants are least likely. to deceive them. The standard list currently contains 35 trusted validators. Ripple decides which validators are allowed for this list and also forms six of these validation nodes. However, users can choose not to participate in this default list and, hypothetically, completely remove Ripple's validators from their transactions instead of creating their own trusted validator lists. This would allow the network to continue approving transactions without the Ripple company remaining involved or even continuing to exist.

As new transactions come in, validators update their ledgers every three to five seconds, making sure they match the other ledgers. If there is a discrepancy, they stop to find out what went wrong. This allows Ripple to validate transactions safely and efficiently, giving it an advantage over other cryptocurrencies such as Bitcoin.

"Bitcoin transaction confirmations can take minutes or hours and are typically associated with high transaction costs," says Lee. "XRP transactions are confirmed in about four to five seconds at a much lower cost."

Boss Heights

Boss Heights contributor to blancmedia.co.uk
Public figure