In today’s world cryptocurrencies have gained a prominent status. They are gaining popularity on a massive scale. But with so many cryptocurrencies available out there, choosing the best one becomes intimidating. Well, the title of top crypto assets is reserved for Bitcoin, Ripple, and Ethereum. These are the most popular cryptocurrencies.
If you are interested to know more, this is the article you ought to read. In this post, we will discuss the difference between Ripple and Ethereum based on different factors.
Introduction to Ripple and Ethereum
Ripple is a blockchain-based cryptocurrency and digital payment network that facilitates the real-time instant transfer of money between customers worldwide. In some companies, the Ripple coin, XRP is a cryptocurrency incorporated as a payment system. A Ripple cryptocurrency transaction is 1000 times faster and 1000 times less expensive than that of Bitcoin transaction.
Alternatively, Ethereum is an open-source blockchain platform that lets users create decentralized applications. Using Ethereum, people can send virtual currencies to any part of the world for a minimal fee. But one distinguishable feature that Ethereum offers it the creation of smart contracts. The platform enables you to write your own code for controlling money and is accessible from any part of the world.
Ripple vs. Ethereum
Ripple and Ethereum both cryptocurrencies have made it to the list of top three virtual currencies. Talking about its market cap, Ethereum has a $60 billion market cap, while the Ripple has a $26 billion market value. Moreover, in the past year, both crypto coins have achieved value higher than double their market value.
But both of these currencies have different goals. Ripple aims to simplify real-time global payments for banks and big corporations by excluding the worry of exchange rates. Whereas, ethereum is a decentralized platform that aims to augment blockchain technology’s use for the creation of smart contracts while mitigating the frauds, downtime involved, and third-party interference.
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Talking about the performance, Ripple excels ethereum.
Ripple is a semi-permissioned blockchain; all institutions that lie in the network can use its ledger. If a user sends XRP coins to another user, the transaction gets verified within 4 seconds. Besides, Ripple can execute more than 10,000 transactions in a single second. Thus, the xrp to INR exchange is affordable.
However, in the case of Ethereum, it takes 15 seconds per transaction, which is four times slower than Ripple. Also, the Eth to INR exchange rate would be a bit higher.
Ripple & Ethereum- Advantages and Disadvantages
- Ripple is focusing on reforming the global payment infrastructure. It makes cross-border payments faster, efficient, and transparent.
- Ripple is mainly targeted to meet the needs of large institutions.
- Ripple narrows down the gap between the traditional financial ecosystem and the digital financial world.
- The major downside of Ripple is that it is inherently private and is not decentralized.
- Being a public blockchain network, Eth assures high transparency and security.
- Ether as a currency will continue to be in demand as long as the Ethereum network operates. The smart contract functionality of Eth is consistently growing in popularity.
- The downfall of ethereum is that is its network fails; its crypto-asset will also fail.
Hence, there is no clear answer on which crypto makes a better investment.