What is XRP and why to use it

Table of contents:

• Bitcoin vs. Ripple: An Overview
• THESE CENTRALS
• Bitcoin
• Wave
• Main differences

Bitcoin vs. Ripple: An Overview

From the outside, the cryptocurrency universe appears to be limited to Bitcoin. As the best known cryptocurrency, Bitcoin leads the way in terms of market capitalization and overall attractiveness to investors.

However, there are several other options for those looking to diversify their portfolio and experiment with currencies that offer a different take on the concept of digital currencies. Ripple's XRP is one of them. In July 2021, the cryptocurrency ranked sixth in terms of total market capitalization. Let's take a closer look at what distinguishes XRP from Bitcoin and other superior digital tokens, like xbt to usd does.

THESE CENTRALS

• Ripple is the company behind XRP, the cryptocurrency.
• Bitcoin transaction confirmations can take many minutes with high transaction costs, while XRP transactions are confirmed in seconds with low costs.
• XRP is a technology best known for its digital payments protocol and network.
• Many large banks use the XRP payment system.

Bitcoin

Bitcoin works on a public blockchain ledger that supports a digital currency that is used to facilitate payments for goods and services. The Bitcoin network is based on the blockchain concept, a public ledger for verified transactions and records.

Miners continually review transactions and add them to the Bitcoin blockchain. In exchange for their time and the computing power required to validate the ledger in this way, miners are rewarded with BTC after successfully validating transactions.

Wave

XRP is the native cryptocurrency for products developed by Ripple Labs. Its products are used for payment processing, asset exchange, and remittance systems that function more like SWIFT, an international money and value transfer service used by a network. of banks and financial intermediaries. XRP is pre-mining and uses a less complicated mining method compared to Bitcoin.

In news reports, XRP and Ripple are often used interchangeably. They are both really different. Ripple is the name of the company and the network behind the XRP cryptocurrency.

The company was founded as a trusted peer-to-peer network through social media. Users within a network could bypass banks and grant themselves open loans and lines of credit. But the network could not start.

In 2012, three years after Bitcoin announced the era of cryptocurrencies, Ripple changed lanes and became OpenCoin, a money transfer network where large corporations and financial services firms acted as counterparties to transactions.

XRP, its cryptocurrency, launched that same year with 80 billion tokens for the company and 20 billion for its co-founders. The purpose of XRP was to serve as an intermediate mechanism for exchanges between two currencies or networks. OpenCoin became Ripple Labs in September 2013.

Ripple describes itself as a global payment network and counts large banks and financial service providers among its clients. XRP is used in their products to allow fast conversion between different currencies.

Main differences

The main differences between Bitcoin and XRP are as follows:

They both have different methods for validating transactions. Instead of using the concept of blockchain mining, the Ripple network uses a unique distributed consensus mechanism to validate transactions, in which participating nodes verify the authenticity of a transaction by conducting a survey. This allows for almost instantaneous assertions without a central authority.