- Ethereum and Ripple represents the largest crypto projects in Europe and America respectively
- While Ripple manages 1,500 transactions per second, Ethereum suffers at 30 transactions per sec
- Ethereum is the second-largest crypto with a market cap of $202 billion
- While Ripple holds the 6th position with $20.5 billion in market capitalization
Since their launch in 2009, cryptocurrencies have grown to become an integral part of today’s society. Since the launch of the first crypto, Bitcoin, the location of a project has played an important part in its development.
Europe and America represent two different parts of the world, with two different approaches to regulating cryptos. The largest cryptos in Europe and America represent two of the leading cryptos in the world today.
Ethereum (ETH) vs Ripple (XRP)
Ethereum, the second-largest crypto represents the largest crypto in Europe. Ethereum was launched by Vitalik Buterin in July 2015. Ethereum introduced a new approach to blockchain and gained mainstream acceptance in 2017 for its use cases.
The Ethereum project aims at expanding the use of blockchain technology using smart contracts. It enables smart contracts and decentralized applications to be built and run without any downtime, fraud, or interference from a third party.
Ripple is a leading blockchain network solution that offers real-time power payments to customers worldwide. Ripple was designed and launched by a private organization, Ripple Labs in 2012. Ripple labs are located in San Francisco.
There’s often a bit of confusion about the difference between Ripple and the XRP tokens. The blockchain protocol that allows people and banks to send and receive funds is called ‘Ripple’ while the tokens used for transacting on the network are the XRP tokens.
On the Flipside
- Tesla has driven Bitcoin to a new high of above $44k.
- The electric car manufacture, led by Elon Musk, announced that it had acquired Bitcoins worth over $1.5 billion worth of Bitcoins
- After the announcement, Bitcoin gave into the Bulls, rushing to a new high of $44,112
Ripple operates on a semi-permissioned blockchain. This approach means that banks who are part of this network can use the Ripple ledger for better transactions. This is one of the major selling points of the Ripple project. When a user sends XRP coins to another person, it takes only 4 seconds for transaction verification.
On the other hand, Ethereum uses a public blockchain. On the Ethereum network, anyone can become a node of the network anytime. In comparison to Ripple, Ethereum approximately takes 15 seconds, which means it is 4 times slower than Ripple.
The native coin on the Ripple blockchain, the XRP tokens reach up to 1,000 times faster and 1,000 times cheaper than a Bitcoin transaction. Although the project focuses on the banking industry, anyone can use the Ripple blockchain to send and receive funds.
One of the most worrying issues for the Ethereum developers is the network’s ability to “scale” transactions. Scalability is used to understand how many transactions a system can handle in a second, and its ability to grow.
Even after moving to its layer 2.0 blockchain, Ethereum now manages only 30 transactions per second. On the other hand, Ripple XRP can process about 1,500 transactions per second, which is significantly more than Ethereum. The completion of Ethereum 2.0 promises up to 100,000 transactions per second. Until then, scalability remains a major issue for the Ethereum network.
Ethereum is ranked as the second-largest cryptocurrency with a market capitalization of $202 billion. The Ether currently trades at $1,751.
In this department, XRP falls behind the Ether. Ripple is ranked as the 6th largest crypto, currently exchanging hands at $0.4477 and holding a market capitalization of $20.4 billion.