Bitcoin, introduced in 2009 by an entity under the pseudonym Satoshi Nakamoto, is the first decentralized cryptocurrency. At its core, Bitcoin operates on blockchain technology—a digital ledger that records all transactions across a network of computers. Transactions are grouped into “blocks” and verified by network participants called miners. The mining process involves solving complex cryptographic puzzles, which, upon completion, add a new block to the blockchain. This process not only secures the network but also introduces new Bitcoin into circulation, a feature known as the proof-of-work system.

This decentralized nature of Bitcoin means there is no central authority; instead, the network is maintained by a global consensus among its participants. However, this method has drawbacks, such as significant energy consumption due to the intensive computational power required for mining and relatively slow transaction speeds as the network scales.
Ripple Technology Overview

Ripple (XRP) was created in 2012 with a different approach. Unlike Bitcoin, Ripple doesn’t rely on a traditional blockchain or mining to validate transactions. Instead, it uses a unique distributed consensus mechanism through a network of validating servers and crypto tokens called XRP. This system allows for significantly faster transaction approval times and lower energy consumption compared to Bitcoin.

Ripple’s primary focus is on serving financial institutions for cross-border transactions, positioning itself as a bridge currency to facilitate payments between different currencies. The network can handle up to 1,500 transactions per second, showcasing exceptional scalability compared to Bitcoin.

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