If you only check the HBAR vs XRP comparison for coin values, you’ll see that Ripple has a higher worth per token. But those picking the next investment for their crypto portfolio should learn more about both projects before choosing. Our guide discusses the foundations of Hedera and XRP and the technologies behind the projects.
What Is HBAR?
Mance Harmon and Leemon Baird created Hedera in 2018, featuring the hashgraph distributed ledger instead of a blockchain. Although the structure is different, Hedera has similar goals to Ethereum and other altcoins. Its purpose is to offer a network where companies could build dApps and a successful decentralized economy. HBAR is the network’s native coin, and you can trade it on https://godex.io and other reputable crypto exchanges.
Hedera supports smart contracts and features a virtual machine that uses the Solidity programming language. Hedera has a Council that leads the network. Some members include IBM, BitGo, Google, and Boeing. Hedera promises that members stay true to decentralization, stability, and network innovation.
What Is XRP?
Ripple is a US-based company that created the XRP Ledger with the goal of offering fast international transactions. BTC already served large crypto transfers, so this payment protocol focused on frequent everyday transfers. That means the focus was on speed, efficiency, and affordability.
Once the creators launched the network, XRP was pre-mined. That ensured a lower carbon footprint than some crypto competitors, along with faster transaction times. XRP Ledger was supported by a variety of utilities and other tools that can help enterprises enter the world of digital transactions.
Technology Comparison: HBAR vs XRP
Hedera and XRP use different consensus algorithms. HBAR relies on the so-called hashgraph consensus, which features asynchronous Byzantine fault tolerance. It’s the highest security level that relies on “gossip.” Gossip refers to data information that includes timestamps, signatures, and different transaction details. The network uses these to create “gossip about gossip,” which establishes a chain of events on the ledger. Validators use virtual voting to confirm the data.
XRP also uses a unique mechanism named XRPL or Federated Consensus. It relies on reputable validators that are on the Unique Node List (UNL). Once the majority of validators agree, the transaction is finalized and becomes permanent.
The analysis shows that XRP can process up to 1,500 transfers per second. HBAR takes that to 10,000 TPS, which is impressive. Both networks have excellent scalability properties, considering they can settle transactions in as little as five seconds. Their energy efficiency is better than most other crypto projects, including BTC.
Use Cases and Adoption
Hedera has a wide range of use cases since it supports smart contracts and dApp building. From healthcare and agriculture to the supply chain and DeFi platforms, Hedera has thousands of projects on its blockchain. It focuses on enterprise solutions, powering companies to create their decentralized apps and enter the Web3 world.
Ripple is primarily a payment protocol, so its use cases are connected to that. It’s fast and convenient for cross-border payments and remittances. Low costs make XRP suitable for frequent microtransactions.
Market Performance and Investment Potential
You can trade HBAR at around $0.0517. The coin has been stable during the last year, including a slight positive growth. Hedera has a market cap of over $1.95 billion, and it’s in the top 50 in the crypto rankings in that category. From the total supply of 50 billion coins, you can now find around 37 billion in circulation.
XRP has a price of about $0.53 per coin. It maintained stability over the last month and year while keeping the market cap at over $30 billion. In that aspect, it’s in the top ten in the rankings. The maximum supply is 100 billion XRP coins, but only about 56% are circulating now.
HBAR vs XRP: Which Is the Better Choice?
Hedera went with the unique hashgraph structure to offer an alternative to standard blockchains. The idea proved to be successful, and many are excited to see the improvements the network has in store for the future.
Ripple, the company behind XRP, has gone through some tough times. However, it successfully navigated the SEC lawsuit, and most agree that it came out as the winner. That generated a lot of fresh buzz for XRP, which remains one of the top payment protocols in the crypto industry. Ultimately, both HBAR and XRP have great reputations and price forecasts, so the decision on a better investment is solely up to your preference.
