Ripple vs Litecoin – Main Differences Between These Two Cryptocurrencies
Ripple vs Litecoin is not going to be an easy comparison taking into account how different these digital assets are. However, there are some distinctions that we should make and take into account. Speed, reliability, fees, and consensus algorithms are some of the things we would have a look at.
Ripple (XRP) is one of the largest and fastest-growing cryptocurrencies in the market. In a similar way, Litecoin (LTC) has been a major player in the crypto space. Both of these virtual currencies have their pros and cons, and each of them offers great solutions to users.
Ripple vs Litecoin – Differences
Ripple (XRP) is the fourth-largest virtual currency in the world. It is used by companies in order to process faster cross border transactions and reduce costs. This cryptocurrency can also be used to source liquidity on-demand between fiat markets. This is very useful, considering it is very expensive and slow to perform fiat transactions in specific corridors.
Ripple is also a company. This firm is behind the main development of XRP and how it can be used to improve the financial market. Until now, Ripple was able to offer services to more than 300 clients.
Litecoin, instead, is the 8th largest cryptocurrency. This digital asset was created in order to offer faster and cheaper transfers than Bitcoin (BTC). In the last few years, it was also used by developers to test a wide range of new improvements. These improvements were planned to be used on the Bitcoin network. Thus, Litecoin worked as a testing network for Bitcoin.
This virtual currency is currently guided by the Litecoin Foundation. This Foundation is working to promote LTC, improve the whole network, and expand its usability. This is similar to the way in which Ripple works with the XRP digital asset.
The following sections will be used to describe with more detail the way in which Litecoin and Ripple work. We will take into account their consensus algorithms, prices, and future projects.
Ripple and Litecoin have different consensus algorithms. Ripple works with a network of servers that are distributed around the world, making the whole network decentralized. These servers allow the network to run and be as agile as it currently is. This is completely different from Proof-of-Stake (PoS) or Proof-of-Work (PoW) blockchain networks.
The main characteristics of this consensus algorithm include speed, reliability, and low transaction fees. At the same time, this network doesn’t consume large amounts of energy to operate.
Litecoin, instead, works with a Proof-of-Work (PoW) consensus algorithm. This makes it a very secure network and reliable as well. Despite the fact that everyone can have access to this network, it is highly centralized. Several mining farms located in China concentrate a large part of the total Litecoin hash rate.
Compared to Bitcoin, Litecoin is faster and cheaper to use. Nevertheless, it remains less energy-efficient than Ripple and its system.
While Ripple transactions are almost free and instant, Litecoin transactions may take a few seconds to be confirmed. LTC transfers are also more expensive than XRP transactions.
Ripple vs Litecoin Price Comparison
Before understanding the main differences between Ripple vs Litecoin, we need to see how many coins they have issued. There have been minted 100 billion XRP (100,000,000,000 XRP) of which around 43,810,000,000 XRP are in circulation. Meanwhile, there will never be more than 84 million LTC, with 65,864,560 LTC currently in circulation.
At the time of writing this article, the XRP price is $0.255266 and a valuation of $11,566,743,830. Things are different for Litecoin. Each LTC can be acquired for $58.62, and it has a market capitalization of $3,860,807,166.
The highest price ever reached by Litecoin was close to $375 in 2017. XRP reached an all-time high of $3.84 in January 2018, a few weeks after Litecoin. This shows how the cryptocurrency market is very volatile and how much things can change. The market is now waiting for new all-time highs in both of these cryptocurrencies.
It is worth noting that both Litecoin and Ripple have been in a bear market in 2018 and 2019. Litecoin experienced some momentum in 2019 before its halving event. Meanwhile, XRP investors got excited, with Swell events promoted by Ripple.
Acquiring and Storing Ripple and Litecoin
Buying and storing Ripple and Litecoin shouldn’t be a difficult thing to do. Indeed, most of the exchanges support both XRP and LTC. This makes things easier for those who want to have a diversified portfolio in cryptocurrencies.
Two of these platforms where you can purchase the aforementioned two virtual currencies are Coinbase and Binance. In addition to it, users will have the chance to store their funds in these platforms. However, the best thing to do is to store virtual currencies in a hardware wallet.
One of the best wallets to store both of these virtual currencies is Ledger. There are other platforms that would offer you different solutions according to your needs. This would help you decide which are the best exchanges where to buy Ripple or Litecoin.
The Future of Ripple and Litecoin
Ripple is planning to continue growing around the world. Indeed, they want to attract a larger number of companies working with cross border transactions. If that happens, the possibilities of having new XRP users will grow as well.
A world with XRP transfers would be better for individuals and firms. Costs will be reduced, and investments in the sector could also grow.
Moreover, Ripple has a wide range of projects, such as Xpring. These initiatives are expected to have a positive impact on the price of XRP. Other solutions include the On-Demand Liquidity and the Ripple Net. New partnerships with other companies are going to play a key role in pushing XRP higher.
Litecoin, instead, has new plans to take their solutions to other users. They are now working on more privacy features. This is expected to help users take care of their privacy when they perform transfers.
Additionally, Litecoin could be used to test new Bitcoin implementations in the future. This would certainly increase the demand for LTC and help it reach new highs in the future. It is worth mentioning that LTC experienced a halving event less than a year ago.
Both Ripple and Litecoin are very useful virtual currencies for the niches they are currently working on. Each of them has advantages and disadvantages. Ripple is working in order to offer better solutions to financial companies worldwide. Litecoin is being developed so as to help the Bitcoin scale and grow even further.
Clearly, both of these digital assets had a positive impact on the market. Litecoin and Ripple are certainly virtual currencies crypto enthusiasts and investors should own.