XRP and Ripple are often confused. However, Ripple is the company and facilitates the network where the XRP coin runs as currency. This often results in confusion. XRP has been on place 2 on the cryptocoin market cap for some time now. XRP is a pre-mined coin which means that all coins are made at once. Approximately 40,000,000,000 XRPs have been released on the crypto market. The company Ripple manages a fixed amount of 100,000,000,000 XRP. The uniqueness of XRP is that these coins are not mined and offer a transaction protocol for banks and the financial world, in contrast to mined coins such as Bitcoin and Ethereum.
XRP has a super fast transaction time of 4 seconds and is much more efficient in terms of transaction costs and transaction capacity than Bitcoin and Ethereum. Below is a comparison:
- Transaction speed 4 seconds
- Max. amount of coins: 100.000.000.000
- Max. transactions: 1500 per second
- Mining: Not. All XRP is released at once.
- Transaction speed average 6 minutes
- Max. amount of coins: no maximum
- Max. transactions: 10-30 per second
- Mining: proof of work, become proof of stake
- Transaction speed average 78 minutes
- Max. amount of coins: 21.000.000
- Max. transactions: 7 per second
- Mining: proof of work
Often is said that XRP would be a bankers coin and totally does not meet the idealistic story of Bitcoin and other mined coins. The basic philosophy is that crypto coins should operate outside the current financial system and provide a more transparent and fairer financial system. This is a wonderful idea, but the current banking world does not let itself go away so quickly. From a more realistic perspective, XRP has a lot of potential in the near future and will be used as a use case in the financial world.