Bitcoin and Ripple: Analysis of Cryptocurrencies and Applications

This report provides a comprehensive analysis of Bitcoin and Ripple, two prominent cryptocurrencies. It begins by exploring Ripple, detailing its architecture, features, and the challenges it faces. The report then delves into the applications of Bitcoin, examining its role as a platform and a system of record, with specific examples like intelligent procurement and online identification. A crucial part of the report is the comparative analysis of Bitcoin and Ripple, highlighting their similarities and differences, including their underlying technologies, transaction speeds, and intended use cases. The report concludes by summarizing the key findings and discussing the potential future of these digital currencies in the evolving financial landscape. The report draws upon research from online sources including scholarly articles to provide a comprehensive overview of these technologies.

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].
Its use allows banks to decrease operational costs significantly and promise fresh facilities for
immediate global deposits and credits to their customers.

It offers connections to any fractional reserve network, velocity for immediate settlements and
payments, assurance for cash gathering and expense at the lower limit for each user-made payment.
Big international banks have begun utilizing Ripple procedures for cross-network actual-time trading
and swap of currencies. Their real use, unlike other crypto currency coins, has implied that too many
banks are using them to give their clients quality services, beginning with cost reductions. Ripple's
aspirations and benefits have resulted big businesses like Google Projects, Standard Chartered,
Accenture projects to spend so much money of usd in their industry.
Challenges-
Although Ripple is "not a poor investment" at present, there are significant difficulties for its fund-
oriented electronic coin (XRP), as per Weiss Ratings, if it comes to long-term opportunities.
Autonomous ratings agency Weiss Ratings has started to record cryptocurrency scores since this
year's beginning. While the comparatively small score of a C+ (lately updated to a B-) gained most
publicity from Bitcoin, several other cryptocurrencies were also categorized by the organization,
assisting investors to select the greatest chance while ignoring the lowest profitable [5].
Weiss Ratings lately focused on the third most common electronic currency, Ripple (XRP), which
presently has a market valuation of less than US$ 28 billion.
Stakeholders in Ripple's XRP coin may create some good yields in the immediate future, but there
are two major conundrums that should not be overlooked about the coin as a lengthy-term
investment.
First, Ripple's founder business relies strongly on dealing with financial institutions, assisting them
tokenize their currency by conducting business through the Ripple mechanism to reduce expenses
and effort. However the Ripple system is simply a platform for transferring from paper money to
Ripple and return to paper money. Moreover, financial institutions are not even required to use the
XRP coin for these exchanges.
Secondly, since Ripple is not a government corporation — and XRP coins are not shares — the
holders of such digital money have no right to the future earnings of the corporation. One might
even believe of XRP coins to impress banking institutions as trifling "preview" digital currencies.
That's all it is.
One of Ripple's greatest problems is that it is actually a centrally controlled business that, except for
Bitcoin, is much less resilient to legislative crackdowns. It would thus pull far less to ban
decentralized exchange rates.

PART 2
Bitcoin is the first continuous, distributed, worldwide, confident directory of documents in tradition.
Since its creation, the consequences of this growth have come to know businessmen in sectors
across the globe.
Bitcoin as a platform-
For intelligent procurement: A group of the largest global banks, various insurers,
headed by a developer, seeks to create a forum for the creation of fresh electronic
connections among banks. A mixture of Ricardian agreements and mapped company theory
is their strategy to obtaining these fresh electronic interactions. In brief, the purpose of this
type of blockchain technology is to use blockchain data and records to help complicated
lawful arrangements.
For computerized policymaking: Bitcoin itself is an instance of computerized
policymaking, or an independent decentralized organisation. It and other initiatives stay
management experimentation, and there is a lot of lack of studies on this topic [6].
Bitcoin as a system of record-
Online identification: encryption keys in persons' hands enable fresh property rights and
a base for creating exciting electronic interactions. Blockchains, provide a chance to build a
powerful digital identity structure. Because it is not focused on consideration and account-
related authorizations, because it is a push transfer, and because possession of encryption
keys is possession of the cryptographic protocol, this creates a fresh and safe way to handle
privacy in the digital globe that prevents consumers from being exposed to exchanging too
much sensitive private data.
Tokenization: The products are coupled with a correlating electronic coin to authenticate a
particular physical product. This fundamentally implies binding the physical and virtual
worlds by using coins. Such electronic coins are helpful for the handling of distribution chain,
proprietary information, and identification of forgery and deception.

PART 3-
Bitcoin & Ripple-
Similarities: It is possible to transfer both Ripple and Bitcoin on cryptocurrency exchanges.
Transactions enable customers to sell trade and purchase distinct cryptocurrencies (in return today
there are more than 1,600 distinct cryptocurrencies).
On every swap or broking, not every sort of cryptocurrency is depicted. Since they are swapped and
still mostly uncontrolled, they function as the more unstable components of the share market with
up and down pricing, sometimes quite fast. Not only are poorly regulated the separate
cryptocurrencies, but the transactions are also entirely unregulated, which implies they can be
dangerous. If one decides to purchase Bitcoin or Ripple, investing as much as they can afford to give
up easily is a nice general rule.
Ripple was a major game changer in 2017, achieving 35,000 percent worth of eye-popping, while
Bitcoin attained 1,200 percent worth across the same timespan. Both of these profits are enormous
and almost unthinkable of in more passive investments, which is why so many individuals leap into
the fad of cryptocurrency. Each of these cryptocurrencies are presently exchanging at a much
reduced cost than the end 2017 and starting 2018 peaks they achieved. If Ripple is able to make a go
of the industry they are fabricating, and the tech used to resolve the issue of currency exchanges
throughout fiat currency structures, they may have plenty of room for growth.
Differences: In order to pay for services and products, Bitcoin was created as a cryptocurrency. In
addition, Ripple was established as a deposit resolution, remittance scheme, and monetary swap for
banks and payment services. Ripple's primary concept was to develop a scheme of actual-time direct
property transfers that would be affordable, clearer and safer than current techniques of deposit,
such as SWIFT deposits.
Bitcoin is a mining (evidence-of-work) Blockchain-based currency, and Ripple utilizes an incremental
agreement directory and database validation channel along with XRP cryptocurrency coins. A variety
of autonomous databases handle the Ripple system, continuously reviewing their usage logs. A fresh
Ripple directory is developed every moment. Ripple is not intended for mining at all. That's why
these two currencies vary very much from one another. Bitcoin miners generally receive a prize in
the sort of fresh Bitcoin.
Verifications of Bitcoin transactions take roughly 10 minutes, while verifications of XRP transactions
take 5 secs.
Bitcoin is used in cash ability. The objective of Ripple is to use it across the system to move certain
currencies or goods such as petroleum or gold [7].

The Ripple network is a completely distributed swap of currency, while Bitcoin involves restricted
currency exchanges. It implies that customers are meant to swap XRP for USD; with no middlemen
or third parties, this can be done within the Ripple system.
So if somebody wishes to offer their XRP for USD, they can do that inside the system without a third
party being needed.

CONCLUSION:
This assignment discusses and analyses bitcoin and ripple in detail. It shows that despite hitting few
roadblocks recently, ripple is gaining popularity and making its way to the top. The speed and
reliability makes it more lucrative compared to bitcoin and in coming days, chances are there that it
may topple Bitcoin and take its place at the top of the list of cryptocurrencies. The affordability of
ripple also makes it more desired than other competitors. Bitcoin stays a genuinely public system
controlled by no person, power, or state. Ripple is controlled and managed by a private corporation
with the same title, although it is globalized. Although both have their own distinctive
cryptocurrency coins, the two common digital devices are tailored to various applications.

REFERENCES:
[1]"What is bitcoin? - CoinDesk", CoinDesk, 2019. [Online]. Available:
https://www.coindesk.com/information/what-is-bitcoin. [Accessed: 10- Aug- 2019].
[2]Bitcoinmagazine.com, 2019. [Online]. Available: https://bitcoinmagazine.com/guides/what-ripple.
[Accessed: 10- Aug- 2019].
[3]"The history of Ripple cryptocurrency - BitcoinWiki", En.bitcoinwiki.org, 2019. [Online]. Available:
https://en.bitcoinwiki.org/wiki/Ripple_history. [Accessed: 10- Aug- 2019].
[4]"The Best Ripple Wallets: Detailed List and Main Features", Wallets.com, 2019. [Online].
Available: https://wallets.com/ripple/. [Accessed: 10- Aug- 2019].
[5]"Ripple: Big Long-Term Challenges - Weiss Crypto Ratings", Weisscrypto.com, 2019. [Online].
Available: https://weisscrypto.com/en/article/ripple-big-long-term-challenges-ripplenet-swift-banks-
governments. [Accessed: 10- Aug- 2019].
[6]"What Are the Applications and Use Cases of Blockchains? - CoinDesk", CoinDesk, 2019. [Online].
Available: https://www.coindesk.com/information/applications-use-cases-blockchains. [Accessed:
10- Aug- 2019].
[7]"Ripple vs Bitcoin Comparison | CoinCentral", CoinCentral, 2019. [Online]. Available:
https://coincentral.com/ripple-vs-bitcoin/. [Accessed: 10- Aug- 2019].