There is so much hype and confusion in the blockchain, distributed ledger and cryptocurrency world and one name that keeps increasingly coming up in that space is Ripple. I often get asked about 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.
Ripple v BitcoinWhile Bitcoin is a digital currency intended as a means of payment for goods and services, Ripple is a payment settling, currency exchange and remittance system intended for banks and payment networks. The idea is to provide a system for direct transfer of assets (e.g. money, gold, etc.) that settles in almost real-time, and is a cheaper, more transparent and secure alternative to transfer systems used by banks today, such as the SWIFT payment system.
XRP tokensXRP– which is the actual cryptocurrency – is a token which is used on the Ripple network to facilitate transfers of money between different currencies. Existing settlement systems generally use US dollars as a common currency for converting between other currencies. This incurs currency exchange fees and takes time – which is why bank transfers between accounts in different countries often take up to three days to process.
By first converting the value of the transfer into XRP, rather than USD, exchange fees are eliminated and processing of payments is reduced to seconds.
To Know more:
www.blockchainx.tech/crypto-currency-development
Topic: What Is The Difference Between Bitcoin And Ripple? (Read 54 times)