Ripple is one of the most divisive and misunderstood of all the cryptocurrencies currently available on the market.
Launched in 2012, Ripple software was actually designed to connect different payment systems together. Because Ripple is a centralized currency, the brand’s focus is selling their software to banks and financial institutions. However, as cryptocurrencies rapidly gain traction, interest from individuals in XRP (Ripple cryptocurrency) has spiked.
Like Ethereum, Ripple is commonly misunderstood to be the name of the currency itself. In actuality, much like Ethereum is the name of the software, and Ether is the name of the coin — Ripple is the name of the open payment network, while the currency itself is called XRP.
Three key differences to know about Ripple vs Bitcoin
- Mining coins: Whereas Bitcoins are mined by users themselves, XRP is not mineable, it can only be acquired through purchasing.
- Transaction speed: Bitcoin transactions must be individually approved by miners, whereas Ripple transactions do not, making Ripple transactions quicker to authorize.
- Information tracking: The Bitcoin network only tracks the movement of Bitcoin, whereas Ripple is able to track information of any kind, including account balance.