We are going to talk about the top-ranking cryptocurrencies, which are placed next to one another as per the market capitalization. There are many differences between the two, but before going ahead with the distinctions, let us understand a few basics about both of them. Ripple is the name of the organization, and the token is called XRP, and it was created before Ethereum, in 2012, which is approximately three years before ETH was formed. Ethereum was created in 2015 by Vitalik Buterin, and it became the first blockchain project to enable users to enter into agreements, without the intervention of a third party and this formation is called “smart contract”. It can automatically process transactions when conditions are met.
Ripple Labs created Ripple (XRP) to enable cross-border payment, which can be used by banks and financial institutions to transfer money abroad. It is mostly designed to be used by financial institutions. It has partnered with most of the banking institutions, including Axis Bank, American Express, etc.
Ethereum is like the Android of the blockchain, where you can build your own applications. ETH has been created to promote smart contract technology, which is pre-programmed for any agreement to happen, without any third-party beings. Many Ethereum blockchain-based coins have been created, and those are called ERC20 tokens.
In the case of Ethereum, the fund transfer can happen in around 16 seconds. This is also called the block time, which is much faster than the largest cryptocurrency, Bitcoin, which takes 10 minutes to confirm. Ethereum scalability is also better than Bitcoin, as it can process around 15 transactions per second, which will improve like crazy after the Ethereum 2.0.
On the other hand, XRP block time is 4 seconds which is around 4X times faster than ETH. Ripple can process 100X more transactions per second than Ethereum. In terms of performance, Ripple looks much better than Ethereum. Ripple has already set up its standard when it comes to inter-bank transactions.
The Ethereum Foundation comprises of highly skilled developers, who are responsible for promoting and educating people about their innovations and technology updates. The entire team is led by the co-founder of Ethereum, Vitalik Buterin. Ethereum has forked or split seven times till now, the latest one being Ethereum Constantinople hard fork and the upcoming is the Istanbul hard fork. Ethereum has one of the strongest community of developers.
XRP is managed by its parent company, Ripple Labs, which is based out of San Francisco. The main guys behind XRP are the CEO of the organization, Brad Garlinghouse and Chris Larsen, the company’s chairman. A significant amount of XRP is held by the company; hence some people call it centralized.
As the blockchain technology doesn’t depend on any centralized authority, there are certain devices that took the responsibility of confirming the transactions, which are called nodes. For Ethereum, it follows the same consensus algorithm as Bitcoin- Proof of Work (PoW). Ethereum uses Ethash Proof of Work algorithm, which prevents from using expensive hardware like ASIC.
Ripple works on Federated Byzantine Agreement (FBA), which is slightly different from PoW. Some selected nodes will be required to trust a certain number of other nodes, known as “Circle”. Ethereum allows anyone with a GPU to contribute to the network, but Ripple doesn’t. It uses Transaction validators, who are the only ones that can contribute to the network.
Ethereum is currently trading at $173.55, with a market capitalization of $18.6 million, and is positioned as number two, as per the market capitalization.
XRP is currently trading at $0.257068 with a market capitalization of around $11 million and is positioned as number three as per the market capitalization. As per as XRP vs ETH chart, both fell by around 2% in the last 24 hours.
We have already mentioned the basic differences between Ripple and Ethereum above.
XRP has very good potential to grow, with its vast number of partnerships; hence, it can be a good investment, but make sure you do some thorough research before taking any investment-related decisions.
Smart contract technology makes Ethereum unique, and there are other differences, which are stated above.
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2019-07-24 07:31:05.220118 | 2 min