By now, you should know that we have more than 1000 known cryptocurrencies, with many more coming. The crypto community is advancing by the day, and the future of money seems certain in its hands. The cryptocurrency community is such that all the coin runs on a blockchain technology, which is designed to keep the crypto transactions monitored and transparent in a decentralized manner.
Going deeper into each coin, you’ll understand that every coin has its own unique purpose. Bitcoin, for example, was developed to replace money in such a way that it could be accepted in all marketplaces. Some coins, however, ripple (XRP) and Ethereum (Ether), have specific applications. Their purpose isn’t to replace money; although they are cryptocurrencies like bitcoin, they are not the same as Bitcoin in purpose or usage.
Difference between Ripple (XRP) and other cryptos:
As mentioned earlier, cryptocurrencies have their similarities, and they also have their differences. In this post, we’ll be examining the difference between ripple and other coins. The difference between ripple and other cryptos will be ripple price to a layman, but there’s much more than that. Here are some of the technical differences.
● Ripple’s Ledger system:
Every cryptocurrency is backed up in a ledger system where all transactions are recorded. With this system, nodes (individual verifiers on a particular blockchain) can easily confirm the legitimacy of the transaction and the smooth running from the payer to the payee. This ledger system also meets the criteria for smart contracts and other blockchain payment processes.
XRP only requires 80% of the nodes to validate the transaction, meaning transactions on the XRP blockchain are faster than networks like bitcoin. The system is such that each transaction takes little or no time for them to be confirmed from one end to the other.
XRP is the currency spent on the ripple network the same way ether is spent on the ethereum network.
Ripple’s processing speed is one that speaks significant volume and highly of the coin. The ripple transfer speed is similar to the same way the credit card works. Most merchants and institutions that carry cross-border transactions make use of XRP because of the speed associated with the ripple blockchain. On average, XRP has the capacity of processing at least 1500 transactions per sec with an average approval time of 4secs. Unlike bitcoin, which could take up to 10minutes, and ether which could take 12secs. So comparing ripple’s price to the speed it delivers, compared with other top cryptocurrencies, ripple stays far above them all. It’s essential that every crypto investor looks into ripple as one with such a great future, especially when considering its distinguishing factors.
Can ripple be mined? No, it cannot. Ripple wasn’t designed to be mined. It is majorly known for its digital payment protocols and network, which some financial banks adopt. Mining is the process whereby validators verify transactions on an available network while being compensated with the coin. The process, however, is possible on the ethereum and Bitcoin network. Unlike these two networks, ripple destroys every coin after each validation in the form of a transaction fee.
● Employs both centralization and decentralization:
One of the significant differences between ripple and other cryptocurrencies is that while other cryptos are mainly decentralized, ripple makes use of both. A blend of both distribution and allocation of governing power makes this coin unique.
Ripple Labs has the capacity to the protocols validators will follow. It releases a unique node list of verified and trusted validators (UNL). Note that, although these validators are recommended, ripple users are not required to use them. So, how is ripple centralized? It is centralized regarding its acceptance unto the network and with regards to its protocol, and it’s decentralized with respect to how its transactions are validated and confirmed. Irrespective of ripple’s practicality, it still remains a very volatile coin allowing its adopters to gain potential gains and losses.
Ripple is one of the top 10 cryptocurrencies ever, and it still has the capacity to do more. Ripple’s price is such that it remains pocket-friendly even though it has some various applications, better than Bitcoin. With the growth in the ripple network, its price is expected to go as high as $5 by 2025, putting it at the forefront. As various opportunities begin to come up, the ripple´s price and its acceptability become more elaborate. Hence, it is therefore important to note that at this point, ripple remains one of the best cryptocurrency to invest.