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Tarulika Jain
Apr 6, 2020
by Tarulika Jain

A Detailed Comparison Between Ethereum And Ripple

ripple-vs-ethereum
Is Ripple built on Ethereum? Or are they both separate protocols? Are they traded at competitive rates in crypto markets? Can they be exchanged with each other? Do they have any similarities? Phew!! So much in mind. But do not worry, your search ends here and I will try to answer all the questions related to Ripple vs Ethereum.

Both of them had established their position in a short time, after launching in the blockchain sector and certainly in the crypto markets with their native coins ETH and XRP.

Brief Introduction Of Ethereum And Ripple

Ethereum and Ripple, both the coins are slowly captivating the crypto markets and becoming popular after Bitcoins. Both of the coins compete for second place in the crypto market with different purposes and protocols. With a contrasting approach in technology, they are making groundbreaking achievements in the blockchain sector.

Ethereum was founded by Vitalik Buterin and launched in 2015. Ethereum blockchain was made to overcome the limitations of Bitcoin. For the first time, Ethereum facilitates the people with smart contracts (which automatically completes the transaction based on pre-programmed conditions) for the efficient trading in crypto markets.

Ripple was designed and launched by Ripple Labs (a private organization) and was created in 2012. Ripple blockchain has an entirely different objective from Ethereum. Ripple wanted to revolutionize the cross-border payments system used in the banking sector. Ripple Labs focusses on their core mission while blockchain is open to all for send and receive funds and can trade XRP, native coin in crypto markets. Thus, Ripple is a technology and XRP is a coin. The transactions of XRP involve less transaction cost and allow faster transfers.

Ripple Vs Ethereum

Native coins of both the blockchains most of the time remaining in the top three cryptocurrencies in terms of market caps. Ethereum and Ripple, both of them aim at reducing the intermediaries, thereby reducing the chances of the man in the middle attacks and transaction costs also. So, let us try to understand the striking differences which resulted in the crypto fight: Ripple Vs Ethereum.

 

Ripple Vs Ethereum

 

  • Unique Purposes: Ripple visions to create fast and trackable international payment systems by closely working with banks and helping them to change their outdated systems. Being based on blockchain technology, Ripple increased the traceability, reduced the transaction fees and also made the cross-border payments quicker than ever before. Ethereum wanted to expand the utility of blockchain beyond the payment service provider. It launched smart contracts based blockchain which adds a set of rules over blockchain for the blueprint of Decentralized Apps and since then attracted huge investors.

  • Governance: Ripple is centralized in its management but decentralized in its use, i.e., Anyone can use XRP, but Ripple Labs will determine the direction of the network. Ripple has pre-mined coins, hence no miners. On the contrary, Ethereum provides a decentralized system under the concept of “proof of work”. Miners receive the Ether after completing the block verification, thereby not managed by any private organization.

  • Tokens (XRP and ETH): Both XRP (Ripple) and ETH (Ethereum) are utility tokens but are traded differently. While XRP has the maximum cap limit and traded in a planned manner by Ripple Labs, on the other hand, ETH does not have any cap on the threshold. XRP serves financial institutions, while ETH can represent units of account and use as a medium of exchange.

    • Ethereum and Ripple are entirely different and serve varied purposes. They vary on certain factors also like transaction time, fees to exchange the coins and minimally on the prices of their tokens also. But some of you might be overheard that Ripple is built on ethereum. Undoubtedly, Ethereum blockchain facilitates the developer to design applications on it. But Ripple, which was created three years before the Eethereum was launched, means Ripple has its ledger protocol. Thus, next time if somebody gets confused with the question-Is Ripple built on Ethereum, then please make them understand about the basics of both the blockchains and clear them with purposes of both the coins.

    Can ETH and XRP Be Traded Against Each Other?

    Ripple Vs Ethereum, both are the major altcoins in the crypto markets after bitcoins. But is it possible to buy Ripple with ethereum? Or interchangeably how to trade ethereum for Ripple? Yes, of course. Why not? Ethereum and Ripple are readily tradable on almost every crypto exchange. If you know about necessary trading on the crypto exchanges, then you can easily trade against each other. But how to buy Ripple with ethereum?

     

    ETH and XRP

     

    Crypto to crypto exchanges like Binance, Bittrex etc. can be easily used to buy Ripple with ethereum in a similar manner as you exchange the other coins by creating the crypto account, link your bank account to crypto account, buy bitcoins and exchange it with any cryptocurrency. Decentralized exchanges which assure complete anonymity like Wave, Changehero etc. can also be utilized to facilitate the trading in an entirely decentralized manner. Crypto brokers like Changelly, Swapy etc can be used to swap the coins through smart contracts. Platforms like LocalBitcoins which act as a bridge between buyers and sellers help you in smooth exchange. Similarly, ethereum can be used to buy Ripple through the platforms mentioned. Ethereum to ripple exchange rate and vice versa depends on the prices of both the tokens at the time of trading and on the platform via which trading has been established.

    What Should Be Preferred Between Ethereum And Ripple?

     

    Ethereum And Ripple

     

    You might be clear about the basics and utilities of both the protocols. But are you confused, which one should be purchased? Or should you buy both Ethereum and Ripple? Both the projects are unique in themselves, having tremendous potential for the future of the blockchain. On the one hand, Ethereum promises the future of decentralized applications (Dapps). On the other hand, Ripple confirms to revolutionize the cross border financial system. Thereby, you can start investing in both of them by dividing your money as per the prices of coins in the present crypto markets.

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      Tarulika Jain
      Tarulika is an engineering graduate and an eloquent crypto blogger. Being a digital economy supporter, she keeps herself updated with the latest innovation in the crypto industry, Blockchain Technology, Internet of Things and other technologies. Currently, she curates the simple and interesting content for Crypto guides for beginners. If you want to learn more about the cryptocurrencies, latest trends of blockchain-powered AI applications, you are free to follow her on LinkedIn and Twitter.

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