What is the difference between Bitcoin and Ripple?

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There is so much clamor and confusion in the blockchain, in the world of the distributed register and the cryptocurrency and a name that continues to increase in that space is Ripple. I am often asked about & nbsp; the difference between Bitcoin (still the best known cryptocurrency based on blockchain) and Ripple. So in this post I try to explain what exactly Ripple is and what makes it different from Bitcoin.

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Before entering into every detail, & nbsp; always remember that investing in cryptogames or tokens is highly speculative and the market is largely unregulated. Anyone who considers it should be ready to lose the entire investment.

Ripple v Bitcoin

While Bitcoin is a digital currency intended as a means of payment of goods and services, Ripple is a system of payment settlement, exchange and remittance of banks and payment networks. The idea is to provide a system for the direct transfer of goods (for example money, gold, etc.) That resolves almost in real time and is a cheaper, more transparent and secure alternative to systems transfer rates currently used by banks, such as & nbsp; SWIFT payment system.

Bitcoin is based on blockchain technology, while Ripple does not use & nbsp; blockchain but uses a ledger of distributed consent using a validation server network and cryptographic tokens called XRP (sometimes referred to as Ripples).

Token XRP

XRP – which is the current cryptocurrency – is a token that is used on the Ripple network to facilitate the transfer of money between different currencies. Existing settlement systems generally use US dollars as a common currency for conversion between other currencies. This entails exchange costs and takes time – which is why bank transfers between accounts in different countries often take up to three days for processing.

By initially converting the value of the transfer into XRP instead of USD, the exchange fees are eliminated and the processing of payments is reduced to seconds.

Banks included Fidor Bank, Santander, Commonwealth Bank of Australia and a consortium of 61 Japanese banks they said they are experimenting with or implementing applications using the Ripple Network payment system.

XRP is a token used to represent the transfer of value through the Ripple Network. Unlike bitcoin, where new coins are created (up to the level covered) as a reward for participants offering & nbsp; computing power to maintain the blockchain network, Ripple created 100 billion XRP coins at its inception.

Ripple & nbsp; has recently added a new feature thanks to an intelligent contract system (escrows), the company & nbsp;releases 1 billion XRPs & nbsp; holding back each month to help finance business operations, incentivize customers and sell to accredited investors. All unused tokens will be returned to storage. According to internal sources, last month (which was the first month of escrow) Ripple & nbsp; used only about 100 & nbsp; millions & nbsp; and has deposited 900 & nbsp; millions & nbsp; warranty.

Where can I pass Ripple's XRP?

Ripple was never designed to be a currency or a payment method. However, there is a small list of merchants that accept online XRP token payments. For example, you can buy honey,& Nbsp;spicy sauces& Nbsp; is jewelry. You can find a list of sellers who are presumably willing to accept Ripple's XRP, but things change constantly and some of those listed do not accept it or accept it any more. & nbsp; The & nbsp; The primary use case of XRP is intended for the transfer of other currencies (or indeed commodities such as gold or oil) on the Ripple network. "& nbsp; Every time an organization that transfers money (or good) as a bank uses the network to make a transfer and a settlement, the cost is deducted in a small amount of XRP, which is what gives XRP their value – somehow can be considered "fuel" for the machines that drive these transfers.

How can I invest in Ripple? And should I?

Ripple has certainly gained a lot of momentum and the list of organizations that use it indicates that the tokens themselves will become full-fledged assets. In fact, last year, the increase in value of an XRP token outperformed Bitcoin or any other cryptocurrency. In early 2017, an XRP was valued at $ 0.006. They peaked, at the start of this year, at & £ 3.87, before collapsing rapidly up to the current value of around $ 1 per XRP.

XRPs are exchanged on exchanges of cryptocurrency like Binance is Poloniex. Usually, you can not buy them with currencies already issued by the government (fiat): first you have to buy Bitcoin or Ethereum, then transfer them to an exchange to exchange them with XRP.

As for the question "should you?" – well, since I am not a financial advisor I would not advise on investments, but it is fair to say that the absorption of Ripple by the main financial institutions is generally considered a strong indicator of the future value of XRP. However, before investing in any cryptorivalence, you should first investigate it in depth and decide if it is likely to be a valuable asset in the future. As we have seen, the value of all cryptocurrencies is highly volatile and can go down rapidly as fast as it goes up. A solid advice is to never invest more than you can comfortably afford to lose.

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There is so much clamor and confusion in the blockchain, in the world of the distributed register and the cryptocurrency and a name that continues to increase in that space is Ripple. I am often asked about the difference between Bitcoin (still the best-known blockchain based cryptocurrency) and Ripple. So in this post I try to explain what exactly Ripple is and what makes it different from Bitcoin.

Before going into further details, always remember that investing in cryptography or token is highly speculative and the market is largely unregulated. Anyone who considers it should be ready to lose the entire investment.

Ripple v Bitcoin

While Bitcoin is a digital currency intended as a means of payment for goods and services, Ripple is a system for settlement of payments, exchange and remittance of banks and payment networks. The idea is to provide a system for the direct transfer of goods (for example money, gold, etc.) that installs in near real time and is a cheaper, more transparent and secure alternative to systems transfer systems used by banks today, such as the SWIFT payment system.

Bitcoin is based on blockchain technology, while Ripple does not use blockchain, but uses a distributed consensus ledger using a network of validation servers and cryptographic tokens called XRP (sometimes referred to as Ripples).

Token XRP

XRP – which is the current cryptocurrency – is a token that is used on the Ripple network to facilitate the transfer of money between different currencies. Existing settlement systems generally use US dollars as a common currency for conversion between other currencies. This entails exchange costs and takes time – which is why bank transfers between accounts in different countries often take up to three days for processing.

By initially converting the value of the transfer into XRP instead of USD, the exchange fees are eliminated and the processing of payments is reduced to seconds.

Banks including Fidor Bank, Santander, the Commonwealth Bank of Australia and a consortium of 61 Japanese banks all said they are experimenting with or implementing applications using the Ripple Network payment system.

XRP is a token used to represent the transfer of value through the Ripple Network. Unlike bitcoin, where new coins are created (up to the maximum level) as a reward for participants who offer computing power to maintain the blockchain network, Ripple created 100 billion XRP coins at its beginning.

Ripple has recently added a new feature thanks to which, through an intelligent system of contracts (escrow), the company releases 1 billion XRP held each month to help finance corporate operations, incentivize customers and sell to accredited investors. All unused tokens will be returned to storage. According to internal sources, last month (which was the first month of escrow) Ripple used only about 100 million and returned 900 million in escrow.

Where can I pass Ripple's XRP?

Ripple was never designed to be a currency or a payment method. However, there is a small list of merchants that accept online XRP token payments. For example, you can buy honey, spicy sauces and jewels. You can find a list of suppliers who are presumably willing to accept Ripple's XRP, but things change constantly and some of those listed do not accept it or accept it any more. The primary use case for XRP is intended for the transfer of other currencies (or even raw materials such as gold or oil) on the Ripple network. "Whenever an organization transfers money (or good) as a bank uses the network to conduct a transfer and a transaction, the cost is deducted in a small amount of XRP .This is what gives XRP the their value – somehow they can be considered "fuel" for the machines that make these transfers.

How can I invest in Ripple? And should I?

Ripple has certainly gained a lot of momentum and the list of organizations that use it indicates that the tokens themselves will become full-fledged assets. In fact, last year, the increase in value of an XRP token outperformed Bitcoin or any other cryptocurrency. In early 2017, an XRP was valued at $ 0.006. They peaked, at the start of this year, at £ 3.87, before rapidly collapsing to the current value of around $ 1 per XRP.

The XRPs are traded on cryptocurrency exchanges such as Binance and Poloniex. Usually, you can not buy them with currencies already issued by the government (fiat): first you have to buy Bitcoin or Ethereum, then transfer them to an exchange to exchange them with XRP.

As for the question "should you?" – well, since I am not a financial advisor I would not advise on investments, but it is fair to say that the absorption of Ripple by the main financial institutions is generally considered a strong indicator of the future value of XRP. However, before investing in any cryptorivalence, you should first investigate it in depth and decide if it is likely to be a valuable asset in the future. As we have seen, the value of all cryptocurrencies is highly volatile and can go down rapidly as fast as it goes up. A solid advice is to never invest more than you can comfortably afford to lose.

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