Crypto Academy Season 2 Week1|| Homework post for (alphafx)|| Comparison Between Rippe Coin (XRP) and Bitcoin

This is a post in response to the homework
• Give detailed comparison of two blockchains of your choice

Given by Professor @alphafx

In this homework, I wil be comparing the Ripple coin and the Bitcoin

RIPPLE Blockchain

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Ripple Cryptocurrency is an open payment system. Its aim is to give people the will of cutting lose from financial institutions such as credit card companies, banks and various systems that stipulate transaction fees and still has some delays. In regards to market size and capital, Ripple was the fourth largest cryptocurrency as at September 2020, with its position immediately behind The Bitcoin, Ethereum and the USD Tether.
The Ripple system currently has billions of dollars’ worth of cryptocurrency. Ripple network was designed to encompass digital payments for individuals who may need to transact from fiat to cryptocurrency.

For clarity, note that Ripple is the company/network that launched the coin, and the crypto coin is known as XRP. The rate at which new coins are released into the system influences the price of the crypto coin. There are a total of 100 billion XRP currently in existence and Ripple possesses approximately 60 percent of this XRP.
Ripples initial release was in 2012 and its founders are Chris Larsen and Jed Mccaleb.

Ripple is steadily adding more value to its network and developing partnerships with various financial institutions and even global firms. Some banks such as SEB, Start One Credit Union, Cambridge Global Payment and BBVA have signed on to use the Ripple network.

As the service and network of Ripple continue to expand so also does the capacity of the value of Ripple grow.

About BITCOIN

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Bitcoin is a digital cryptocurrency which was first introduced in January 2009. It is governed by the ideas written in a whitepaper by Satoshi Nakamoto whose identity is unknown. Bitcoin fulfils the promise of less transaction fees than the online traditional payment system may incure and, contrary to government-issued fiat currency, it is decentralized.

Physical bitcoins do not exist anywhere rather there are balances stored on a public ledger which every user has access to. Every bitcoin transaction is verified by a so much of computing energy. Bitcoin is not dispensed by any government or financial institution.Never minding the fact that bitcoin is legally recognized, it has gained massive popularity and it has multivated and set the path for the launch of other. cryptocurrencies. Bitcoin is often abbreviated as BTC.

By market capitalization,the world most used cryptocurrency is the bitcoin.
Disimilar to fiat currency, bitcoin is created, dispersed, bought and sold using a ledger system(decentralized), called the blockchain. Bitcoin network is an aggregation of nodes that process bitcoin codes and stores it on the blockchain.

COMPARISON BETWEEN RIPPLE AND BITCOIN

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• The Supply
Ripple’s total supply of 100 billion XRP was minted at the instance of it's launching, and there are currently more than 45 billion XRP in circulation. When compared to Bitcoin, bitcoin supply is pegged at a total of 21 million and the quantity in supply is over 18 million bitcoins.

• Control Over Coin Issuance; The company Ripple dictates the total supply of XRP and sell some given quantity in the crypto market periodically. Apart from the 45 billion XRP in circulation, about 55 percent of existing available XRP tokens are being possessed by the Ripple company.
On the bitcoin network, the inverse is the case. Bitcoin could be mined through resolution of some computational math problem on the blockchain.Also, the supply of bitcoin is not presided by any individual or group of individuals; nevertheless, the supply of bitcoin cannot exceed 21 million.

• The fast and less expensive rate which Ripple majorly offers makes the platform to be low in transaction cost with a speedy rate of fiat or cryptocurrency exchange as well as a speedy transaction confirmation.
Bitcoin digital currency is decentralized and so does not feature a speedy transaction rate. Rather bitcoin puts more effort and resources on its opposition to Centralization.
For instance, the transaction confirmation of XRP transactions is done in seconds while that of bitcoin takes more time( an average of 10 minutes)

• Technologies:
Bitcoin network is dependent on the blockchain technology.
A consensus ledger is used by Ripple along side a collection of validating servers. These validating servers are chosen by Ripple and these servers are the gateway to the validation of transaction.

• Function:
Ripples key functions include remittances, international payments and currency exchange. Ripple offers a cheap, fast and dispute free medium to exchange currency and send money all over the world.
Bitcoin is a decentralized currency and therefore does not require involvement of third parties, middle men, or top executives influencing the supply and demand of bitcoin.

#blockchain #alphafx-s2week1 #cryptoacademy