What’s The Difference Between XRP’s Tech And Other Cryptocurrency Assets?


Spot the difference between XRP’s tech and other cryptocurrency assets.

Sometimes, it appears like there is no public support for cryptocurrency networks, but this isn’t the case: at least not exactly. It’s true that cryptocurrencies come in different forms, but they all share the same logic regarding programming, private key cryptography, and peer-to-peer networking.

So, What Makes XRP Different?

XRP was created in 2012 but has already secured $40 billion in value. Regarding market capitalization, it ranks as the third largest cryptocurrency worldwide. Ripple, the company in charge of its operations, has been able to link up some impressive partnerships for the asset successfully.

New reports have revealed that the asset, XRP, isn’t as successful as it appears. Ripple’s other financial products have contributed to its overall value. If you want to benefit from the market, learning as much as you can about the distinction between Ripple’s tech and other products (say Bitcoin and Ethereum) in the market will be helpful.

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Although Ethereum, Bitcoin, and XRP trade on public exchanges, the method of operation is different. For starters, the ledger and consensus algorithm isn’t the same. XRP as a cryptocurrency runs on the XRP ledger. The difference between this cryptocurrency and others is how the system solves a common challenge. The main problem people face with an algorithm like this is the double-spend problem. Ethereum and Bitcoin solve this problem with the proof of work algorithm. However, XRP solves it with an alternative trust-based system that depends on a segment of nodes to make the ultimate decision.

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The segment is referred to as Unique Node List. This system allows the blockchain to cope with a higher throughput of transactions compared to other systems that depend on the proof of work.

The development and governance, supply and token economics, and value proposition techniques all contribute to make XRP a rather exceptional product. Statistics have revealed that it will continue to rise in value as time goes on.

Legal Disclaimer: Smartereum does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Smartereum or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Smartereum makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of cryptocurrency.

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