Bitcoin has gained immense popularity over the course last few years. It has reached new heights thus becoming one of the most investible cryptocurrencies. However, in recent years we see more cryptocurrencies being made. Examples, are Ripple coin, Ethereum, Dogecoin, Litecoin, and many others, Visit Official Website. With so many coins now in the market, it makes the investor very confused regarding which cryptocurrency to choose for investing. Therefore, in this article, we shall show you the difference between three leading cryptocurrencies, Ripple coin, Bitcoin, and Litecoin.
What is Ripple Coin?
Ripple refers to a technology that serves the purpose of cryptocurrency and acts as a payment network for recording any financial digital transaction. These were released in 2012 by founders Jed McCaleb and Chris Larsen. The main idea of this technology is to serve as a system for foreign financial transactions. Its goal is to safely make transfers when dealing with different currencies.
Therefore, ripple is not the coin. The digital currency created by the company ripple is called XRP. The main purpose of the token is to provide a temporary layer of denomination between two networks or currencies. Therefore, a ripple network essentially is an open network that allows for secure transactions between different currencies. The token XRP is to convert these into fiat money or other cryptocurrencies without any major hassle.
Therefore, XRP is nothing but a bridge between other foreign currencies. If you are someone who can only make the payment in Australian Dollars then you can use ripple. This will allow the receiver to choose the form of fiat money or digital currency they want. Therefore, this is essentially built on trust. If there is no trust in the system then there is no ripple.
What is Bitcoin?
Founded in 2009 by Satoshi Nakamoto, bitcoin is a digital currency system. It stores all of its value in the blockchain. Each blockchain is representative of the financial transaction that took place using bitcoins. The blockchains are protected by public and private keys. One can think of a bank account number to understand the public key and can take the private key as the ATM PIN. With the public key, anyone can give you or request you to give bitcoins. With the private key, you can authorize any such transaction. In addition to this, all such transactionsare recorded on a public platform allowing anyone and everyone to have a look at these transactions.
When the token is traded in the market it is referred to as BTC. Currently, it is the top cryptocurrency that people wish to invest in.Till now, many people believe that bitcoin is the only cryptocurrency. However, this is not true. When trading on an exchange platform you will find many cryptocurrencies. Therefore, to make sure that you invest in the correct cryptocurrency you should use the best trading platform. One such great platform.
What is Litecoin?
Similar to Bitcoin Litecoin runs on a blockchain system. It is part of decentralized cryptocurrencies free from government intervention. However, there are some key differences. This cryptocurrency was founded by a former Google engineer named Charlie Lee in the year 2011. There are differences between bitcoin and Litecoin- that the later can be mined pretty easily. So much so, that the founder during the debut even said “lite version of bitcoin”. At first, we see Bitcoin and Litecoin going head-to-head however, as the market started getting saturated and more players entered the field the popularity ofLitecoin thinned out.
Therefore, this is a basic introduction to the different coins. Now let us look at the differences.
Ripple coin or XRP is essentially a payment gateway system. It does not stem from an open-source. Whereas Bitcoin and Litecoin are both digital currencies stemming from open-source and following the decentralization process.
Ripple coin has already been mined to its full capacity, whereas bitcoin and Litecoin still have many blocks that have not been mined yet. In case of bitcoins, there is a determined amount of total coins.
While ripple is essentially a payment system the digital currencies bitcoin and Litecoin have a major difference. Bitcoin can be divisible to even 0.00001 whereas Litecoin cannot. So, if you wish to trade in whole, you should use Litecoin.
Therefore, as you can see these are some important differences between ripple, bitcoin, and Litecoin.