Ethereum Vs Ripple : Differences You Need to Know
Crytpcurrencies such as Ethereum, Ripple, bitcoin, Dash and many more are the major talk of the finance market these days. If you are thinking the buzz in the digital market is all about Bitcoin, then you are wrong here. Smaller cryptocurrencies are becoming increasingly appealing to financial institutions. According to coinmarketcap.com, Ethereum has retained its second place with a market cap of $127 billion while Ripple is down to third place with a market cap of $68 billion.
Ripple is the new player in the digital world making the headlines from the start of this year after skyrocketing more than 1000 percent in value. It’s management believes that their platform offers a faster and more reliable transfer network than its direct competition. Also, it has faced its fall in price this week while Ether, on the other hand, has enjoyed a rise from the recent market developments.
One needs to know the differences before investing money in either of them. The differences mentioned below should give you an idea of how Ethereum vs Ripple battle is shaping up.
Differences between Ethereum and Ripple:
The first comparison among the two is scalability meaning how many transactions each cryptocurrency can conduct every second.
Ethereum can deliver 15 transactions per second but Ripple is capable of delivering a staggering 15,000 transactions per second which is a huge advantage over Ethereum.
This is one of the major reasons for Ripple occupying the third place after Ethereum which led to its early prominence.
2. Transaction Time
Another major difference is the transaction speed offered by both the platforms. Ethereum, however, delivers a transaction speed of two minutes in comparison to Bitcoin which can take up to an hour.
Ripple again has an advantage over the other in this case as the time of transaction offered by Ripple exchanges is merely 4 seconds.
Another major consideration is whether the cryptocurrencies have entered the mainstream of public consciousness or not. Besides Bitcoin, only Ethereum seems to be well known among the people.
While Ripple is not well known at the time of writing but it has been making headlines recently and can soon enter the mainstream.
4. Technical Differences
Ethereum can be considered slightly different from Ripple with 18 million units mined per year and it provides numerous potential uses such as reconciliation, enabling smart contracts to be distributed on its network.
Ripple is pre-mined, with one hundred billion units in existence, twenty billion of which are retained by the creators of the currency. The distributed platform provided by Ripple is particularly highly regarded as it is tailored towards the financial service sector.
Ripple’s detractors have pointed out that unlike Ethereum, the Ripple network is not an open blockchain and is centralized with its creators. This is because ripple’s focus is on being business-to-business(B2B) network and not the peer-to-peer network. Also the people are casting their gaze on Ethereum which is becoming the most popular decentralised computing platform in the world.
Some of the experts believe that there is room for all the three cryptocurrencies to cooperate in the crypto market. People are soon going to realise that there is not going to be one crypto rule them all.