What is Ripple?
Ripple is a platform used to transfer currency (RippleNet) and digital currency (ripple XRP). The platform itself is an open-source protocol designed to provide fast and cheap transactions between two parties. Any type of currency can be exchanged on the platform, from fiat currencies, such as EUR or USD, to cryptocurrencies and airline miles. In other words, the Ripple protocol provides low-cost, secure, and high-speed payments between people and financial institutions. The idea is to allow banks and financial companies to incorporate the Ripple protocol into their systems so that their customers can also use the service. We, at Guarda, provide the best service regarding ripple coin wallet.
What is RPCA?
The differences between Ripple and other cryptocurrencies are obvious. One of them is the absence of blockchain. The question arises of how you can check transactions if there is no blockchain. Ripple solves this problem differently. Ripple has its own mechanism for confirming each transaction. RPCA is a new generation algorithm. According to its creators, it is superior in many ways to the proof-of-work concept used to find consensus in the Bitcoin computing network. With RPCA, there is no need to expend resources on computation, transactions are confirmed much faster, and the RPCA network is quite resistant to potential attackers who try to slip a fork of the base with fake transactions.
What are the differences between Ripple and Bitcoin?
In order to understand the main differences between these currencies, it is necessary to have a wallet for ripple. However, the basic things we will describe below. The main differences between Bitcoin and Ripple are as follows:
Both have different ways of checking transactions
Instead of using the concept of blockchain mining, the Ripple network uses RPCA. As a result, XRP runs faster and more reliably than many of its competitors. It also means that XRP's consensus system consumes little energy compared to Bitcoin, which is considered energy-dependent.
XRP is cheaper and faster than Bitcoin
Due to the complex and intensive nature of the mining used in cryptocurrency, confirmation of Bitcoin transactions can take even hours and is associated with high transaction costs. XRP transactions are confirmed in seconds and tend to be very cheap.
XRP has more economic collateral in the cryptocurrency market.
About 1 billion XRP was released to the market, by key investors. At the same time, Bitcoin set a limit of 21 million coins. Thus, it created an artificial deficit around itself and thus attracted the interest of investors.
XRP and Bitcoin have different distribution mechanisms
Bitcoins are released and added to the network as they are discovered by miners. They do not adhere to a release schedule, and their supply depends largely on the speed of the network and the complexity of the algorithm used to mine the coins. Unlike Ripple, the smart contract regulates the launch of XRP. Ripple planned to issue no more than one billion XRP tokens each month, which is governed by the built-in smart contract. Any portion of XRP not used in a given month will be transferred back. This mechanism ensures that there is no potential for abuse due to an overabundance of XRP cryptocurrency.