The key difference between Ethereum and Ripple
If you have made a decision to exchange Ethereum to Ripple or vice versa XRP to ETH, It is always good to understand the difference between these two cryptocurrencies to make the right estimation. Created as an alternative to Bitcoin, Ethereum also allows creating decentralized apps on its basis that are fueled by smart contracts. This is a whole environment for creating applications that help people make deals between each other without involving any third-party for surveillance.
The purpose behind Ripple creation was of absolutely another sort. This project was launched in 2012 and it aimed to speed up the international money transfers between banks. Now it is mostly used by financial institutions and the main reason for blaming this cryptocurrency on the web is the fact that it is totally centralized. However, it is still a good way to send money overseas as the transaction occurs much faster and the fees are much lower than with such traditional companies as Western Union.
What is Ethereum mining algorithm?
If you are a cryptocurrency investor and you want to convert Ethereum to Ripple, it’s recommended to learn more about technologies that underlie these projects in order to make the right choice.
Ethereum is based on the Proof-of-work (PoW) mining algorithm and it is mined in a way that is very similar to Bitcoin, however, the blockchain is different. Ether can’t be mined on the specialized equipment and its production can’t be monopolized by huge companies. You can mine Ether on your home PC and it will be more profitable than joining a mining pool. Ethereum’s creator Vitalik Buterin plans to switch the project to the proof-of-stake algorithm, but the estimated time is not known yet, because this task is really difficult to accomplish.
How is XRP produced?
While Etherium and Bitcoin are created on many different machines all around the world, Ripple is more centralized as it has been issued by a single company. The whole set of XRP coins has been pre-mined and is now partially launched by the issuing company into the market pool. You cannot mine Ripple on your home PC or even on the special equipment, but you can easily trade Ethereum for Ripple if you want to get some of these coins for daily use or for long-term investment.
You should be aware of the coins’ supply before you decide to buy XRP with ETH or vice versa.
The circulating supply of Ethereum equals to 106,221,178. Its maximum supply equals to emission infinite.
For XRP, the circulating supply equals to 42,116,677,673, while its maximum supply equals to 100,000,000,000.
It is also wise to pay attention to the market capitalization before making an investment in the cryptocurrency area.
For Ethereum, the current market capitalization equals to $26,740,525,555.00. XRP capitalization equals to $16,242,186,453.00.
Volume of transactions
During the last 24 hours, Ethereum’s volume of transaction made up $8,804,012,656.88. For XRP, this index equals to $1,351,487,260.23.
Average transaction speed
Ethereum’s throughput is relatively low as it can only process 19 transactions per second at the highest. Get ready to wait from 5 to 20 minutes for a transaction to be confirmed on Ethereum network. Also, if the network is overloaded, the ETA may be even higher.
With Ripple there are no such issues. This coin was initially designed to make instatnt transactions overseas and it does this task very well. The highest TPS on Ripple is 1,500.