W.Although Bitcoin was founded as a fully decentralized network and users put their own computing power into processing payments to mine new Bitcoin, Ripple is a company that has created a set amount of Ripple XRP coins with 99 billion ready for distribution. These XRP coins can be sold or traded, or used as a gateway between various assets to avoid traditional fees and transaction times.
Faster than Bitcoin
Ripple’s developers say its network has several advantages over Bitcoin as a global payment system. Transaction speeds are considerably slower at around three seconds, while fees are a millionth of an XRP coin.
While Bitcoin trading is expensive and has grown massively as public interest, speculation, and private investors make money, Ripple’s faster network can potentially be practically used as a forex network, leading to partnerships and trials with banks like American Express, Santander, and UBS leads.
How does Ripple work?
Ripple works differently than many digital currencies and describes the XRP coin as “the fastest and most scalable digital asset”.
Unlike Bitcoin, which has been touted as a way to move away from central banks, Ripple can be actively used as a means of payment for banks. The network can process up to 1,500 transactions per second, while Bitcoin has fewer than 10 transactions.