Is Ripple a Bitcoin rival?
Ripple positions itself as a complement to, rather than a competitor to Bitcoin. Ripple is a payment system, international remittance network, and currency exchange system.
The Ripple network called RippleNet, works as a platform for transactions in different currencies i.e. a user can fund its ripple XRPs and bitcoin through dollars, euros, yen, pounds etc. thus trading in bitcoin can be done through ripple payment system. Thus ripple provides an additional platform to bitcoin which will result in surge transactions in bitcoin over time.
Ripple is more refined than bitcoin when compared in respect of its transaction speed, scalability (transaction per second), the stability of XRPs unit price, security, technological efficiency, low operationality and liquidity costs.
Difference between Ripple and Bitcoin
To buy or sell bitcoins, the user has to go through the centralised exchange while in the case of Ripples it can be used on its own secured differences.
The ripple information tracking system is more advanced as compared to bitcoin network as it traces comprehensive information about the transactions rather than just tracing bitcoin movement as in case of bitcoin.
How would bitcoin users will be benefitted by Ripple and its payment system?
Ripple would benefit bitcoin users in multiple ways. First, it will help in decreasing the transaction time for users along with providing more stability to the system. Second, Ripple works as a distributed network so there is no dependence on a single company or group of companies which prevent delays and failures because there is no central point in the system which will or can fail. It also increases the scalability of transactions.
Free or not?
Although RippleNet does not charge a user for transactions unlike other payment or transfer systems, but a small amount equal to 1/1000 cent (approximately) is deducted for each transaction. This amount is not collected but destroyed over time. It is just a safeguard measure to maintain stability in the system and to prevent it from being misused.
The next bitcoin?
Ripple is the third largest cryptocurrency after Bitcoin and Ethereum regarding of market capitalisation. Ripple is unique in terms of its payment system and the transaction infrastructure with the added advantage of real-time operations, scalability. Ripple distribution is growing at a quick pace, but XRP has still not witnessed the rally that bitcoin & Ethereum. Ripple has the due potential to become the next bitcoin and may be better than it.
