Ripple and IOTA are new cryptocurrencies that indicate an incredible guarantee to digital currency enthusiasts. How are these two coins different? Let’s do a comparison of Ripple vs IOTA to find out which is better for your project’s development.
Ripple, developed upon distributed open source internet protocol is a blockchain technology based cryptocurrency.
IOTA is an open-source distributed ledger. It’s being called the future generation cryptocurrency as it’s built using the technology platform called the ‘Tangle.’
Blockchain comprises of a chain of blocks that represent transactions which are uniquely identifiable by blocks’ height. As it is a chain of blocks, if a block needs to be changed then the similar data change needs to happen at previous blocks as well.
Tangle utilizes DAG (Directed Acyclic Graph) which is a mathematical concept of a directed graph without any cycles in it.
Unlike Blockchain where the control of transactions depends on miners, IOTA utilizes the idea of an integrated machine to machine and decentralized transaction execution.
Blockchain manages payment to payment transaction whereas IOTA manages machine to machine exchanges.
If you want to make a transaction through Tangle, you have to confirm past two transaction history before yours. The transaction input gets marked with a private key.
Through a particular algorithm, two unverified transactions in a random manner will get referenced to your transaction action. Your transaction will be accepted by the network using some proof of work.
The whole concept behind IOTA is: The more users use IOTA, the more transactions will be referenced and confirmed, making the network more scalable and faster as the confirmation rates and timing get better with the increase of numbers of connected devices.
The working style of Blockchain differs from Tangle. Each node or block in the chain gets a transaction request message, updates its ledger copy, and forwards the message to other connected nodes.
The transactions require monitoring by miners. It consumes more time for execution as compared to Tangle, which doesn’t need miners to monitor them.
Zero Transaction Fees – Sending IOTA from one account to another costs nothing. No other blockchain based cryptocurrency including Ripple is exempted from costs for making a transaction.
Robust technology platform – Unlike blockchain which limits the number of users using it at a given point in time, Tangle offers an advantage on usage. Its security and efficiency provisions get enhanced by the increase in the number of users on the network. There is no limit on it, numerous people at one time can use the Tangle simultaneously.
IOTA is future-proof – Quantum computing era is the future and Tangle’s developed to perform seamlessly with quantum computers. While Ripple with its blockchain technology is more vulnerable to decryption.
Awareness – Ripple cryptocurrency’s based on the blockchain. It was introduced prior to IOTA and therefore, has more awareness among users across the world. It makes its use rampant and increases its reliability as well.
Credibility – Ripple is experiencing faster adoption in major financial institutions all over the world than any other cryptocurrency. IOTA is recently launched in the market and thus, less used by users.
Availability – Ripple is available in simpler forms as compared to IOTA and hence, convenient for users to buy it.
The article is an overview of Ripple vs IOTA; their advantages and issues. If we discuss not so distant future, benefits provided by Ripple are more when compared with IOTA. Also, while having a glance at the foundation of Tangle, IOTA bears the potential to beat Ripple as far as advantages, unwavering character and straightforwardness are the concern.