Cryptocurrency giants- Bitcoin and Ripple

Running head: CRYPTOCURRENCY
Cryptocurrency giants- Bitcoin and Ripple
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CRYPTOCURRENCY
1
Table of Contents
Introduction........................................................................................2
Discussion...........................................................................................2
Bitcoin applications............................................................................4
As a platform............................................................................................4
As a system of record...............................................................................4
Comparison between Bitcoin & Ripple...............................................5
Similarities...............................................................................................5
Differences...............................................................................................5
Conclusion..........................................................................................6
References..........................................................................................7

CRYPTOCURRENCY
2
Introduction
Cryptocurrency is generally a virtual or digital currency which uses the
cryptography technology to generate the units of the currency and verification of
transfers. Most of the cryptocurrencies are based on decentralized or distributed
systems [1]. The systems are based on blockchain technology. This report
discusses about the famous cryptocurrencies (Bitcoin & Ripple) and analyses the
application of these currencies. It also discusses the similarities and difference
between Bitcoin and Ripple.
Discussion
Bitcoin is one of the most valuable cryptocurrencies and payment system
on the world level. It was started as an open-source software in 2009. Bitcoin
works without any administrator and central bank system for managing the units
of currency. The information about the transactions is kept in blockchain (public
distributed ledger) which are verified by the network nodes using cryptography.
Bitcoins are obtained from a rewards process called mining [2]. Later the Bitcoin
can be converted into other currencies, product or services. Whereas, ripple was
released in 2012 by Open Coin company which is not designed to mine at all.
Ripple is both a cryptocurrency and mainly a digital payment system which
evolved even when the Bitcoin is the most valuable and famous cryptocurrency.
Unlike Bitcoin, Ripple is very fast in terms of transferring any funds to other
currencies.
i. Architecture: Ripple's XRP technology is based on a centralized
blockchain architecture. It follows the iterative approach to finding
information about transactions. When a transaction reaches any node, the
node checks that the account from which the request has come, can bear
it or not it. This process checks the availability of the XRP [3].