How does ripple differ from bitcoin

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Are cryptocurrency buy low sell high are

This distributed ledger has an open-source code used to create digital assets called ripples, later renamed XRP. Along with Chris Larsen, the engineers went on to form a company that is now called Ripple. Bitcoin was created in by a person or group using the pseudonym Satoshi Nakamoto.

Bitcoin is the first successful decentralized cryptocurrency of its generation; it's also the first to use a blockchain type of distributed ledger. In a blockchain, new records of transactions are added in blocks of information that are strung together in a chain.

Each new block contains encrypted information about the blocks that proceeded it. If a person wants to alter one block, they'll also have to alter the one before it. And if they want to alter the following block, they'll have to alter the one they altered previously. Like the XRP Ledger, Bitcoin's blockchain ledger relies on multiple participants who all have access to the same information, which helps maintain its security and keep it decentralized.

It doesn't rely on one authority—like a government—to give it legitimacy. Bitcoins are created in a process called "mining" as a reward for lending computing power to the task of verifying transactions. Once a series of transactions are verified, they are permanently added as a block in the chain.

The miner who created the block is rewarded with 6. How Do Ripple and Bitcoin Compare? May be traded as a speculative investment. Provides an alternative, decentralized currency for making purchases. Twenty-one million bitcoins will eventually be created by forming new blocks in the blockchain. An XRP consists of 1 million drops, the only sub-units of the currency. A bitcoin consists of 1, millibitcoins, 1 million microbitcoins, and million satoshis.

This is the smallest division of a bitcoin that can be recorded in the blockchain. The all-time high price of XRP varies, depending on the pricing source. Cryptocurrency Regulations The federal government provides little oversight of spot trading , which is real-time trading as opposed to futures trading of cryptocurrencies.

But state governments and parts of the federal government play roles in regulating virtual currencies. They have the ability to prosecute anyone suspected of fraudulent activity related to virtual currencies. State bank regulators are tasked with overseeing cryptocurrency spot exchanges based on individual states' money transfer laws.

The Internal Revenue Service requires virtual currency traders to pay tax on capital gains from buying and selling cryptocurrency. The Securities and Exchange Commission SEC requires most initial coin offerings —the currency equivalent of initial public offerings of stocks—to be registered; the SEC has prosecuted unregistered issuers of new cryptocurrencies. The Commodity Futures Trading Commission CFTC has prosecuted companies and individuals for misrepresenting the risks of cryptocurrency and for manipulating their value.

It warns that crypto-trading platforms may lack safeguards against market manipulation and other means of protecting traders. Bitcoin and XRP Transaction Information Payments made using XRP can be completed in three to five seconds; those made using Bitcoin are intended to take an average of around 10 minutes.

The average fee for an XRP transaction on October 25, , was about 1, drops. Bitcoin uses a public ledger. Ripple uses a permissioned ledger wherein only entities that have been pre-approved by Ripple Labs can become network validators. Also read: Ripple vs Stellar — The Ultimate Showdown Bitcoin vs Ripple: The Differences Both Bitcoin and Ripple are two of the most prominent cryptocurrencies in the market today, with both generating significant interest lately.

Today Bitcoin is also used as an investment asset, with companies buying bitcoin to shore up their reserves and use it as a hedge against inflation. Ripple facilitates cross-border payments and remittances and also acts as a currency exchange system.

Transaction Speeds An average Bitcoin transaction can take around 10 mins to complete. The transaction speed depends on how congested the bitcoin network is at the time of the transaction. If there are more users on the network, the transaction is likely to take longer.

Higher value transactions on the Bitcoin network tend to be processed quicker than smaller transactions. Transactions on Ripple only take seconds. Ripple ensures fast transaction speeds as they are necessary for the protocol to function as a remittance and payment settlement system. Supply And Mining Bitcoin has a strict upper cap of 21 million tokens.