So, you’ve heard of three of the most popular cryptocurrencies: Bitcoin, Ripple, and Ethereum, but aren’t sure what are the differences between Ripple, Bitcoin, and Ethereum? Or maybe you’re familiar with what they do but aren’t sure how the three cryptocurrencies’ technology stacks up? Hold on tight because I’m about to let you know everything you need to know in either case!
Bitcoin was first, followed by Ripple, and finally Ethereum. Many more have come and gone as cryptocurrency and blockchain protocols have progressed from the fringe to the mainstream, but these three are still arguably the best.
The underlying blockchain technology and algorithms and the functional differences described above differ significantly between the top three cryptocurrencies. Choosing a favorite crypto coin is a personal decision that should be tailored to your specific requirements. What are the major distinctions?
How XRP is going to dominate BTC, & ETH?
Ethereum is distinct from the other two currencies in that it is designed for complex interactions among multiple parties rather than consumer transactions. According to CNBC, it has various applications, including reconciliation and the distribution of smart contracts on the Ethereum network.
While Ripple is currently the fourth most valuable cryptocurrency by market capitalization, with a market cap of $36 billion, it has advantages over both Bitcoin and Ethereum that could soon lead to a significant increase in its value.
Ripple is pre-mined, with a total of one hundred billion units in circulation, with the creators of the currency keeping twenty billion. This is in contrast to Bitcoin, which is entirely dependent on network mining at a fixed rate of 21 million potential Bitcoin units.
Ripple’s distributed platform, which is geared toward the financial services industry, is particularly well-liked. “Using XRP as an intermediary currency makes it possible to transfer funds from one currency to another instantly. The Motley Fool observed, “Clearly, Ripple is generating a lot of buzzes.”
Ripple will be appealing to the traditional financial hierarchy, according to New York Law School professor Houman Shadab, because of the “control they afford over the system.” Ripple, according to Shadab, isn’t “subject to the vagaries of price volatility of the underlying currencies,” and it has a “more secure, distributed authentication process that doesn’t rely on the incentives of miners who authenticate transactions based on the currency’s value.”
Bitcoin is the purest of the three cryptocurrencies, as it is completely decentralized and based on a libertarian ethos. Bitcoin can be seen as a reaction to central bank control of money, with a level of success that few could have predicted.
However, despite its near-unprecedented success, the established financial elite’s hostility to Bitcoin may ultimately be its undoing. While Bitcoin has so far been the investment story of the century, many investors are optimistic about its future potential.
One of the most difficult decisions a crypto investor may face is deciding between two coins or projects. However, XRP and Bitcoin were designed to perform different tasks and do not compete directly.
Bitcoin is the most accessible cryptocurrency because it allows anyone to trade or carry it around the world regardless of jurisdiction. XRP is a specialised technology for settling cross-border transactions at cheaper prices and faster speeds than conventional currency.