Ripple (XRP) vs Bitcoin (BTC): A battle for the Crown

Cryptocurrencies are in the trend in our modern society. Almost everyone is aware of Bitcoins across the globe. Bitcoin is the most known and famous cryptocurrency. Not everyone knows about Ripple but the people who know Bitcoin is a cryptocurrency knows what Ripple is. If anyone is interested in cryptocurrencies they know the value of Ripple. Ripple is gaining popularity by each passing day.

ripple-vs-bitcoinBoth Bitcoin and Ripple are the top cryptocurrencies. Investors and traders from all over the world are investing and gaining profit from these coins. We have heard about both Bitcoins and Ripple, a lot of similarity and differences. There are so many things common in both these cryptocurrencies and so many differences too.

Bitcoin and Ripple: a brief introduction


Both the cryptocurrencies Bitcoin and Ripple are blockchain supported technology and sounds very much similar to each other.


Bitcoin was the first ever cryptocurrency which was created in 2009 with an unknown developer named Satoshi Nakamoto. The motive to create and develop this cryptocurrency was to create and set up a new global payment system. He wanted to establish a peer-to-peer network with no involvement of any third-party and so this decentralized system was created. There is no one person or authority to control Bitcoin but miners on the decentralized network. These miners evaluate and confirm the transactions which are a process of Bitcoin mining. The mining process consumes a lot of time and electricity and in return, they are rewarded with Bitcoins.

Ripple coin was introduced in 2012 however the protocol Ripplepay was founded in 2004. The sole idea behind Ripple was to establish a network which our banks and financial institutions could use for in-house and cross-border transactions to make it smooth and cheaper.

People often get confused between Ripple and XRP and believe that it is one. Ripple and XRP are two different terms with different functions. Ripple is the term of Ripple blockchain technology which is used to send and receive money however XRP is the ripple coin like bitcoin or Ethereum.
This is the basic background of Ripple and Bitcoin let’s get into it more!!

A view over technology

  •      Bitcoin Technology

Bitcoin is the most known cryptocurrency on the planet. On an average Bitcoin take approximately 10 minutes to confirm a transaction regardless to whom or where it is sent. Bitcoin was the first ever cryptocurrency and executing a transaction especially if it is a cross border in 10 minutes was really a big deal then. This, of course, made bitcoin famous as banks generally take 3 to 5 days to complete a cross border transaction.

bitcoin-technology

Not just the completion time but transaction fees were also very low. Later when Bitcoin was adopted by people and its usage increased the transaction fee increased eventually. In 2017 end the transaction fees were once up to 40$ which is not suitable for mini and micropayments.

Though the bitcoin gained so much popularity and is still the most popular cryptocurrency, it has a limit of 7 transactions per second which is less than other cryptocurrencies

  • Ripple technology

Ripple blockchain in return is much ahead than Bitcoin in technicality. Ripple only takes a few seconds to confirm a transaction and this is the reason banks and financial institutions are adapting ripple technology for cross-border fund transfer. The transaction fees of Ripple are almost negligible, and scalability is much higher than Bitcoin. You can send 1500 or more transactions per second unlike seven transactions per second through Bitcoin.

ripple-technology

These technical differences make ripple a choice for the banking industry and the financial sector. As of now, Bank is using a third-party called SWIFT to send and receive transactions or funds across borders. These transactions take approximately three days and are very much expensive.

  • Specifications that matters

Now that you have an idea of how these two blockchains technologies are in nature let us look at the specifications that matter.

  • Decentralization

The most important factor for any cryptocurrency is decentralization. This parameter signifies that the particular cryptocurrency is not owned by one particular person or organization. There is an extent to which a cryptocurrency should be decentralized to survive in this market. Let us have a look over decentralization of Bitcoin and ripple.

Bitcoin BTC: As we all know Bitcoin is the first ever cryptocurrency and is known for its decentralization as much as it is known as a cryptocurrency. There is no single person or organization to control the bitcoin network however there are still many challenges. When Bitcoin was launched it was exactly this way. It was easy for anybody to start bitcoin mining with CPU or GPU which were cheaper to buy. These days ASIC devices are used which are very much expensive but powerful as well. This has eliminated the chance of people who cannot afford to buy ASIC devices.

Moreover, there are bitcoin mining farms created which miners can join and contribute to the mining process as it increases the winning chances.

This has shifted power to the hands of these people and created categories on the basis of what they can afford.

Ripple XRP: Ripple has this one big challenge from critics that Ripple is not completely decentralized or at least as much as it should be. Some people also claim that ripple is not decentralized at all!!

There is nothing in the air without fumes of it being the truth.

Unlike Bitcoin and other cryptocurrencies, Ripple is controlled by an organization called Ripple Labs. Ripple labs control the supply of ripple XRP however cannot change/edit or amend any transaction of funds. Ripple has a cap of 100 billion out of which 60 billion is already released and rest is in control of Ripple Labs.

Ripple claims that it is decentralized as Ripple XRP can be mined as well. The people who mine ripple are called as validators. Reason for it to be criticized is that transaction validators can be the banks and institutions who have installed Ripple. There is no one entity controlling ripple mining however it is not in free hands as well.

  • Consensus Mechanism

There is no person or organization involved in the transactions executed with cryptocurrencies so how it is verified that the transaction is valid? 

Here comes consensus in the business. The devices which are connected to cryptocurrency network are called nodes. To verify a transaction as valid, a few percentages of these nodes should attain consensus which means they need to agree to the agreement to make the transaction valid.

Both Bitcoin and ripple have their own algorithms for the consensus mechanism. Let us look at both one by one.

  • Proof of work: Bitcoin

Proof-of-work is the first ever consensus mechanism created for firstest ever cryptocurrency Bitcoin. The algorithm was developed by Bitcoin developers and it really has a very difficult calculation.

Bitcoin proof of work algorithm has a really touch calculation which takes approximately 10 minutes to solve. There is a number of nodes or computers competing to solve this calculation and who so ever solves it first wins the Bitcoin.

The very significant problem is that it requires a very hardcore expensive machine and electricity.

  • FBA: Ripple

The consensus mechanism used by Ripple is Federated Byzantine Agreement. FBA is slightly different than the proof of work consensus mechanism. There is a concept of Circle in which in the node has a trust relationship with a few other limited nodes. These circles make the ripple network. To make any transaction valid it requires 80% of the validators to reach consensus. Transaction validators are selected randomly which means none of the banks or financial institution using the ripple network can manipulate the transactions.

FBA mechanism doesn’t require solving a complex calculation and uses a decent amount of electricity. This is a very good advantage for Ripple as it is cheaper and not even consuming high electricity.

Final Call


Before writing this article, I had so many thoughts about both the coins and the technologies. Indeed, both the coins are very much popular and loved. Both the coins have a different history and different goals, yet they are in the same pool. Ripple blockchain technology is considered as the most powerful blockchain technology however no matter how much popular ripple is, Bitcoin is still at the top.

Both the coins have their own advantage and disadvantage. Both of them are doing really well. Ripple and bitcoin are compared at each and every stage and this is an achievement for ripple for sure. Most people say that Ripple is the next bitcoin. What do you think, will ripple be the next Bitcoin?

Do you think ripple will leave bitcoin to win the crown of topmost cryptocurrency? Ripple or bitcoin which one is your favorite?