The number of cryptocurrencies is surging like a rocket, and bitcoin is the inspiration of all these projects. However, the first delimitation of the virtual coin was merely bitcoin. You might think that bitcoin is the first definition of cryptocurrency with evidence of other virtual coins. Although undoubtedly, the notion of virtual coin emerged before bitcoin, you have never seen a digital currency succeeding and acquiring limelight amongst retail investors.
Bitcoin was the first to do it all by itself, regardless of its complicated network underlying challenging processes and elements. Check the pattern-trader.app/ to get a detailed guide to bitcoin trading. The community of approvers in the bitcoin network characterize the authenticity and legitimacy of each exchange taking place. This token does not have an infinite supply like the traditional banknotes.
Undeniably, bitcoin has set up standards in the marketplace, but a virtual coin has to display characters like bitcoin to be called a cryptocurrency. After Ethereum, Ripple is another popular model with a large market cap in this community. However, some developers rank Ripple out of the cryptocurrency category due to its features. So, let’s find out whether Ripple is a cryptocurrency and how it resembles and differentiate it from bitcoin.
Ripple: A combination of centralization and decentralization!
Ripple seems to be partially decentralized due to its few attributes. The developers of Ripple did not organize this coin as a standard cryptocurrency. The attribute of a standard digital currency like BTC includes secure transactions and fewer transaction fees.
The native token of model Ripple, XRP, is ranked as an asset and does not embrace the potential of blockchain. However, Ripple is highly beneficial to large scale industries and companies. The parent company of XRP, Ripple, invented this native token but inserted features of a standard digital currency like BTC.
A network without a miner!
Mining is a robust business opportunity and an essential aspect of the cryptocurrency marketplace. If a cryptocurrency operates without miners, it is prone to many theft elements. Ripple is one of the cryptocurrencies that operates without a community of miners.
You might wonder if Ripple is not having a single miner to approve the transactions and then who maintains the security of this network. This is because miners mandate digital currencies having a decentralized blockchain, but a ripple network comprises a centralized blockchain.
The centralization of blockchain has transformed this network into a faster payment method. Mining tends to be the core of digital currency networks, especially for the tokens using consensus mechanisms like Proof of work. Mining ensures decentralization and security, but on the other hand, also given rise to many challenges the world is facing right now, for example, the environmental impacts of this process.
A centralized blockchain!
Like other cryptocurrencies, Ripple’s notion of a wallet is also present. However, having the freedom to access the public ledger in the ripple network is almost impossible. In short, the ledger of Ripple is not public, which makes ripple different from prominent cryptocurrencies.
Unlike bitcoin, Ripple does not comprise any network of nodes, but hosts registered approvers to make transactions secure and validated. The ripple network has possibly explored blockchain’s use case as it executes all the operations on blockchain in a closed source ecosystem.
If the mining community of a particular cryptocurrency network decides to stop mining, the explicit network will jam in a few seconds. But in ripple networks, miners do not have the power to decide such operations.
Is Ripple a cryptocurrency?
Ripple can be classified as a partial cryptocurrency; neither is a total flash digital coin nor a pure fiat currency. In short, Ripple has the feature of both fiat currency and cryptocurrency. Therefore, this platform’s developers do not advise anyone to consider Ripple’s native token, XRP, for trading.
Ripple is a complete masterpiece, which is why the network experience much lesser price swings than other cryptocurrencies. Furthermore, since not everyone can access the Ripple network’s ledger, it does not lead to any rumours or news of a whale selling off its cryptocurrency token. Currently, XRPs in circulation are 100 billion, and it is way more as of the popular cryptocurrency.
In short, Ripple is not entirely a cryptocurrency. The infinite supply and a centralized blockchain make Ripple different bitcoin.