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Bitcoin vs. Ripple Explainer

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Bitcoin Ripple

Whether you’re new to the world of blockchain technology or are simply looking to sharpen your sensibilities when it comes to distinguishing the market’s key players, there is always more to learn. Cryptocurrency trading is fueled by hype and that means that new players are always popping up and disappearing. Bitcoin remains the constant staple in this everchanging landscape and also serves as a useful benchmark against which to understand and evaluate other actors. If you’ve got things like a graph of bitcoin price history saved to your bookmarks, there’s a good chance you’ve also encountered the name Ripple. If you are interested to learn how it stacks up against its forebearer, read on to discover the similarities and differences between Bitcoin and Ripple. 

The risk remains the same

One thing to clear up right off the bat is that all cryptocurrencies exist in a volatile and very speculative market. Although a lack of regulations is part of the draw, it also means that anything goes and there are really no guaranteed bets. Ripple and Bitcoin are both parts of this ecosystem, so keep in mind that if you’re thinking about investing in either, or any blockchain cryptocurrency for that matter, you should go in ready to potentially lose your complete initial investment. When it comes to investing in any cryptocurrency, you’d be best to hedge your bets and only put forth capital that you would be comfortable without. 

Ripple 101

When thinking about Bitcoin, most people understand it as a digital currency that can be used to purchase a variety of goods and services in the online marketplace. Therefore, the number one thing to understand about Ripple is that it serves a slightly different function. Simply put, Ripple is a system for currency exchange, payment settling, and remittance that can be used by payment networks and banks to provide higher transparency and security. Unlike Bitcoin, Ripple was never designed to be an independent method of payment. One of the biggest advantages of Ripple is that it allows for a fairly seamless transfer of assets that plays out in near real-time, providing more peace of mind for those involved in the transaction. 

Ripple doesn’t use blockchain

Another important distinction to make between Bitcoin and Ripple is the fact that Ripple doesn’t use blockchain to fulfill its function. Unlike Bitcoin, Ripple works through a network of validating servers and crypto tokens. The tokens are often referred to as Ripples but are formally called XRP. These are the actual cryptocurrency being exchanged in Ripple, which uses a distributed consensus ledger. 

A closer look at XRP tokens

In terms of how Ripple replaces standard settlement systems, it is useful to think of XRP tokens as a replacement for US dollars, which are frequently used as a middle ground currency for exchanging others. Due to established standards of exchange and the regulations in place, using US dollars not only takes considerably more time but is also accompanied by the dreaded currency exchange fees. 

On top of costing more than most are happy to pay, standard international transfers can sometimes take three days or more to process. Enter the XRP token. Completely supplanting the process, the value of the assets being exchanged are first converted into XPR (as opposed to USD), allowing for fees to be wiped away and the waiting time to be reduced from days to mere seconds. Returning to the Bitcoin comparison, it is worth noting that Bitcoin transactions tend to take around 10 minutes, and although this is certainly less than three days, it is still significantly more than the five-second transaction rate Ripple can achieve. 

Different origin stories 

Unlike the more mysterious emergence of Bitcoin, which is currently maintained by a team of dedicated developers and not tied to any government, bank, or third part, Ripple is more mainstream. Founded in 2012, Ripple was developed by an actual company and had set goals outlined from the get-go. This more standard entry onto the world stage has likely been one aspect that has helped make Ripple more palatable for major financial institutions. Santander and Fidor Bank are just a few of the big names who have said that they are in the process of testing or even implementing various applications of the Ripple Network payment apparatus. 

No mining for Ripple

Another difference that might be hard for Bitcoin enthusiasts to wrap their heads around is that Ripple was not, in fact, designed to be mined at all. An important part of the Bitcoin ecosystem, miners of the cryptocurrency will typically be rewarded for their efforts in the form of a new Bitcoin. Ripple, meanwhile, is pre-mined. There are currently around 38 billion XPR tokens populating the market. The remainder resides in Ripple labs and will be released onto the market in incremental amounts. For further information on Bitcoin payments, check out dchained.

Featured Image Courtesy of Unsplash

Bitcoin

Blockchain technology outshines Bitcoin and Gold during global pandemic

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As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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