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Ripple vs Litecoin

Updated on March 11, 2024
Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

Difference Between Ripple and Litecoin

Both Ripple and Litecoin are cryptocurrencies; Ripple has established in the year 2012 for-profit organization with the main motive of facilitating payments in financial institutions and large corporations, whereas Litecoin was established in the year 2011 with the main motive of facilitating peer-to-peer along with the daily transactions.

Both Litecoin and Ripple are making huge waves in the cryptocurrency market. There are similarities between them because they look at making the transaction simple, secure, and at a low cost. Now and then, a new cryptocurrency emerges, and this competition between them helps them to grow faster, and implement new technologies. As a result, the cryptocurrency space is a more secure place to do transactions.

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  • Ripple was created to make cross-border transactions secure and cheaper and deliver them faster. While Ripple started growing, it started attracting a lot of big corporations and financial institutions like banks.
  • Later on, Ripple started concentrating more on the big picture, making transactions for the big financial institutions and large corporations. It made Ripple leave the individual transactions behind. It has become very popular that some big multinational corporations are seriously considering using ripple for cross-border transactions.
  • Litecoin is an open-source system that is run on the Scrypt algorithm. It is also useful for transactions. Litecoin was created for the same purpose as Ripple. But Litecoin has more functions when compared with Ripple. For example, Litecoin can be used for day-to-day transactions, and the transactions can also be done on a peer-to-peer basis.

Both cryptocurrencies are very similar to each other. The competition between them makes each other stronger as Ripple and Litecoin try to increase their market share. There has also been a lot of voting on which is better? Ripple or Litecoin?

People seem to have different opinions on these two cryptocurrencies and choose either one of them for various reasons. Either way, these cryptocurrencies will be there for the long haul. They also have the potential to make it big in the crypto world.

Ripple vs Litecoin Infographics

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Key Differences Between Ripple and Litecoin

  • One of the key differences is the number of functions each possesses. Ripple has a single function in mind, and it has been constantly updated. It is to make sure that simple, safe and secure low-cost cross-border transactions are taking place in the best possible way. Litecoin was created with Bitcoin in mind, and hence Litecoin has more functions.
  • Ripple attracts large corporations and financial institutions by providing them with a fast and safe method of cross-border transactions at a low cost. On the other hand, Litecoin attracts more peer-to-peer and daily transactions.
  • Ripple has currently placed 3rd place in the overall cryptocurrency rankings. Litecoin is not very far behind, and it is currently placed at the 5th position in the overall rankings.
  • Overall process and maintenance of Ripple is minimal as it doesn’t have to rely on more than one function. On the other hand, Litecoin has to run many processes, and individual transactions from peers take a lot of effort to maintain and carry out the process swiftly.

Comparative Table

Basis for comparison Ripple Litecoin
Established  2012. 2011
Mainly Used Mainly used as a mechanism that is used for cross-border transactions. Mainly used for daily transactions.
Used By For payment in large corporations and financial institutions. For peer-to-peer cross-currently placed in the 5th border transactions.
Current Position Currently placed in the 3rd position. Currently placed in the 5th position.
Functions Used only for a single function, which is a cross-border transaction. They are used for more than one function, including cross-border transactions and transactions from peer-to-peer daily.

Final Thoughts

Both Ripple and Litecoin are very similar. It can also be said that these two cryptocurrencies are in perfect competition. Although Ripple might be in front of Litecoin at the moment, many people favor choosing Litecoin over Ripple.

With Ripple, there is limited growth potential as it concentrates on only one function at the time being. But, if we consider Litecoin, there is unlimited growth potential. Now that more and more people are slowly getting to know about cryptocurrencies and how they are useful to them. It is the best time for any cryptocurrency to make it count with their products. It is so that more people will use them, and hence they gain in popularity and market share.

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