Bitcoin as a system of record | Assessment

Contents
INTRODUCTION...................................................................................................... 2
PART 1................................................................................................................... 3
Ripple-................................................................................................................ 3
Architecture-.................................................................................................... 3
Features-......................................................................................................... 3
Challenges-...................................................................................................... 4
PART 2................................................................................................................... 5
Bitcoin as a platform-......................................................................................... 5
For intelligent procurement:............................................................................5
For computerized policymaking:.....................................................................5
Bitcoin as a system of record-............................................................................ 5
Online identification:....................................................................................... 5
Tokenization:................................................................................................... 5
PART 3-.................................................................................................................. 6
Bitcoin & Ripple-................................................................................................. 6
Similarities:...................................................................................................... 6
Differences:..................................................................................................... 6
CONCLUSION:........................................................................................................ 8
REFERENCES:......................................................................................................... 9

INTRODUCTION
Bitcoin, often defined as a cryptocurrency, a digital money, or a virtual currency,
is an entirely virtual kind of money. It's like cash variant online. Several
individuals like the reality that the state or financial institutions are not
controlling Bitcoin. Individuals can also expend quite confidentially on their
Bitcoins. While all exchanges are documented, except if one informed them, no
one would understand which 'account number' was theirs [1].
Ripple is both a monetary system and a framework. The Ripple framework is
a software system intended to make exchanges quick and inexpensive. Initially
intended as a day-to-day trading platform, Ripple is much safer than Bitcoin. The
exchanges are much faster and more efficient as the consequences. For this
reason it’s gaining popularity day by day [2].
This assignment deals with the details about Bitcoin & Ripple, their structure,
similarity & differences and the challenges they bring along with them.

PART 1
Ripple-
Ripple is an innovation that works for economic operations as both a
cryptocurrency and a online payment channel. Chris Larsen and Jed McCaleb co-
founded it for the 1st time in 2012. The cryptocurrency coin is pre-mined and
XRP is marked.
Architecture-
The architecture of Ripple offers banks with formal property possession
documents and personally responsible respondents and makes more sense for
banks as it imitates the actual finance environment [3]. In the true globe, all
monetary institution members are genuine and in order to retain responsibility,
organizations such as verifiers and broadcasters hold lawful credentials. Not only
is the system safer for banking, but it also has a substantial benefit for the
channel's latency. While Bitcoin and Ethereum can manage 3 to 7 transactions
per second, every second Ripple is intended to perform more than 1,500
transfers! As op codes are already licensed organizations, this enormous jump in
latency arises as a consequence of limited options being transferred to
extraction. Bitcoin's system was prone to delays and very large charges at
occasions of intense use where customers had to wait a couple of hours and pay
more than $20 in charges for their transfers. Although both Ripple as well as
Bitcoin are cryptocurrencies centred on blockchain that can be used to promote
inter-border transfers, there are some important distinctions that render each
one more appropriate for distinct apps. The main distinction between the two is
that while Ripple is allowed, Bitcoin is totally unauthorized.
Features-
Ripple is an optional cryptocurrency relying on Bitcoin technique for easy
transfer of cash; A solution that revolutionizes the functioning of banks.
It utilizes ripple technique, just delivering the cash. It would no longer depend on
banks, credit cards or any other ways to limit global transactions [4].