XRP cryptocurrency
In 2012, three years after Bitcoin announced the era of cryptocurrencies, Ripple changed lanes and became OpenCoin
Ripple recently added a new feature in which the company releases 1 billion of its XRP holdings for itself each month through a smart contract .
As a result, XRP remains decentralized and is faster and more reliable than many of its competitors. It also means that the XRP consensus system uses a negligible amount of energy compared to bitcoin, which is considered an energy consumer - https://nsbroker.com/xbt-usd post explains it perfectly.
XRP is cheaper and faster than Bitcoin
Due to the complex and intensive nature of mining used in cryptocurrencies, confirming bitcoin transactions can take several minutes and result in high transaction costs. XRP transactions are confirmed within seconds and are usually executed at a very low cost.
Much like the processing fee for Bitcoin transactions, there is a fee for XRP transactions. Whenever a transaction takes place on the Ripple network, the user (individual or organization) is billed for a small amount of XRP.
More coins on the XRP market
About 1 billion XRP has already been mined at launch, and major investors have gradually entered the market. In contrast, the bitcoin supply is capped at 21 million, which means that there will only be 21 million bitcoins. The artificial shortage of BTC has helped spark investor interest in its potential as a store of value.
XRP and Bitcoin have different mechanisms
Bitcoins are issued and added to the network when miners find them. They do not follow the exit plan and their delivery depends mainly on the speed of the network and the complexity of the algorithm used to extract the coins.
The smart contract controls the introduction of XRP. Ripple planned to issue a maximum of 1 billion XRP tokens each month under a built-in smart contract; The current circulation exceeds 50 billion.
Each unused portion of XRP for a given month is returned to an escrow account. This mechanism ensures that abuse due to the oversupply of XRP cryptocurrency is not possible and that it will take many years before all cryptocurrencies are available.
Overall, XRP is better than Bitcoin due to shorter processing times and lower transaction costs. To understand the two with real comparisons, here are some analogies.
Peter, who lives in the United States, goes to Walmart and pays for his purchases in US dollars. You can also use your US dollar to buy other currencies for trading and investing purposes, such as GBP or JPY, and then sell them later at a profit or a loss.
Bitcoin is an equivalent digital currency, such as an alternative to real US dollars. Peter can buy and pay in bitcoin, or he can buy bitcoin to trade and invest later and sell at a profit or a loss, just like when trading any other fiat currency such as the British Pound or Japanese Yen.
If Peter wants to send Paul $ 100 in Italy in the US, he can do so by hiring his US bank to do the transaction. After paying the required fees, Peter's American Bank will issue instructions through the current SWIFT system, which will credit Paul's Italian bank account with an equivalent amount in euros (or US dollars). This process can be costly on both sides and takes several days.
Log into Ripple, a payment and billing system that also has the XRP currency.
The Ripple payment system uses XRP tokens to transfer assets over the Ripple network. Peter can instantly convert that same $ 100 into equivalent XRP tokens which can be instantly transferred to Paul's account through the Ripple network.
After the transaction is successfully verified and authenticated by the decentralized Ripple network, Paul receives XRP tokens. You have the option to convert it back to USD or any other currency of your choice, or even save it as an XRP token. The verification process is faster than Bitcoin and traditional money transfer systems.
Summary
Although Ripple works a bit more complex, the example above explains the main features. The Ripple system performs better than the Bitcoin network due to faster processing times and lower transaction fees. On the other hand, BTC is generally more widely used and known than XRP, which gives it an edge in other ways.