What are the differences between Bitcoin and Ripple?


Bitcoin was developed for the purpose of paying for goods and services with a decentralized digital currency. XRP, on the other hand, is a payment settlement between banks and payment networks, a money transfer system and a company headquartered in the USA. Ripple's aim is to make money transfer between countries more efficient in the financial sector. It plans to reduce both cost and processing time by removing the middleman.

The main purpose of XRP is to offer a cheaper, transparent and secure method compared to traditional payment transfer systems. In this context, it eliminates the inefficiencies of the SWIFT system. The Bitcoin network is managed by a group of developers spread around the world. All these developers contribute voluntarily to the Bitcoin network.

The Bitcoin network is decentralized, not managed by any bank, government or institution. It is created by an unknown person or group (known as Satoshi Nakamoto).

The XRP registry is based on an algorithm where servers on the network somehow validate each other, rather than validation mechanisms called "Proof of Stake" or "Proof of Work". This ensures that Ripple (XRP) transactions are completed within 3-5 seconds and is faster than other cryptocurrencies.

Another important difference is that unlike Bitcoin, XRP is not mined. As it is known, miners are rewarded by producing Bitcoin. However, XRP was previously created in the form of 100 billion XRP, of which 39 billion were released. The remaining amount is held in Ripple labs for timely release.