1. A general overview
Ryan Fugger first proposed developing Ripple as a decentralized digital money system in 2001. (RipplePay).
This system began operating in 2005 with the purpose of offering secure payment solutions across a global network.
Fugger founded OpenCoin, a technological business based in the United States, alongside Jed McCaleb and Chris Larsen in 2012. Andressen Horowitz and Google Ventures are among the primary investors in Ripple.
Since then, Ripple has evolved into a payment-focused protocol for banks and financial organizations. By 2013, OpenCoin had changed its name to Ripple Labs, and by 2015, the firm had adopted the term Ripple as its official name.
2. How do Ripple and Bitcoin vary from one another?
Many investors are curious about the differences between Ripple and Bitcoin, and whether they are direct competitors. We’ll respond to this question collectively in a moment:
Bitcoin is a digital currency designed to be used as a payment method for goods and services. Ripple is a payment system, an exchange platform, and a method for sending money to banks and other financial institutions. Ripple’s goal is to create a system that can directly transmit value like money or gold in real time, while also being cheaper, safer, and more transparent than existing systems. the bank is utilizing
Ripple does not use blockchain, but Bitcoin is built on top of it. Ripple, on the other hand, uses distributed ledgers based on a network of verification servers and the XRP coin.
Ripple currently has a transaction speed of up to 1,500 transactions per second, but Bitcoin only has a transaction speed of 3-6 transactions per second.
Furthermore, unlike Bitcoin, Ethereum, Litecoin, and many other cryptocurrencies, Ripple’s token, XRP, cannot be mined. To put it another way, you can’t mine Ripple like you can Bitcoin. All tokens were released with a total value of 100 billion coins at the time of Ripple’s creation.
3. The XRP coin’s benefits and drawbacks
Transaction time is reduced to a maximum with XRP coin; a quick transaction takes only about 4 seconds to complete.
Transaction fees for the XRP coin are incredibly low, at roughly 0.00001 USD each transaction.
Ripple has partnered with over 100 banks, including some of the largest banks in the world, including Bank of America, UBS, Standard Chartered, Barclays, JP Morgan, Santander, and American Express.
By recording each transaction to an immutable public database, the XRP coin blockchain brings transparency and security to transactions.
XRP coin transactions are completely peer-to-peer.
The Benefits of XRP
There will be no inflation: Because all tokens have been issued from the beginning and are now in circulation, the leadership team is comprised of financial specialists.
The fact that Ripple works with over 100 banks is a significant benefit of XRP: The more banks that use XRP, the more valuable it becomes.
Rather than being a Blockchain company, Ripple is an official organization trusted by several banks. As a result, unlike other cryptocurrencies, XRP is not subject to as many governmental examinations.
The XRP token can be converted into any money or asset of value with a low spread commission.
The Benefits of XRP
Highly centralized: Because XRP coins are available right away, Ripple engineers have complete control over when and how many coins are released. The XRP coin’s collaboration with a number of institutions goes against the spirit of cryptocurrencies.
The project’s viability is primarily reliant on the acceptance of banks and financial institutions. It will be extremely harmful once this acceptance is lost.
Because the code is open source, the chances of being hacked are fairly significant once hackers have access to it.
4. Should Ripple (XRP) be used by investors?
Investors can use this possible Ripple (XRP) coin while making digital currency transactions following Thuvientaichinh’s research because of the following advantages:
Payment transactions using Ripple (XRP) are exceptionally rapid; the transaction takes only 4 seconds to complete.
Ripple (XRP) has the capacity to work with over 100 banks throughout the world, making it even more convenient. Banks including Bank of America, UBS, Standard Chartered, Santander, and American Express, among others. The use of XRP by an increasing number of banks has increased the coin’s value in the financial market.
The transaction charge for Ripple (XRP) is merely 0.00001 USD.
Ripple (XRP) is unlikely to experience inflation because the XRP coin has previously been produced and existed. At the same time, Ripple’s powerful finance staff, which includes the two “golden” CEOs of Ripple, Chris Larsen and Jed McCaleb, will not allow it to happen.
Ripple’s (XRP) ability to convert to any currency or asset class with only a modest commission difference is one of its strongest features.
You should also be aware of some of the limits of this digital money if you want to invest in it. Because there are dangers and drawbacks associated with each virtual money transaction.
Because XRP’s code is open source, there’s a good chance that after it’s been hacked, hackers will be able to divulge transaction data. Or, in the worst-case scenario, trading accounts will be lost.
As previously said, Ripple (XRP) is a system that links with financial banks, which goes against traditional coin requirements. Bitcoin was created with the intention of “overwhelming” global financial institutions. Furthermore, when a project has the appearance of the Ripple (XRP) coin, it will be significantly reliant on bank and financial institution judgment.
5. Ripple items and technology
XRP Ledger, Ripplenet, xCurrent, xVia, xRapid, and XRP cryptocurrency are some of the areas that Ripple technology and products are separated into.
Ledger XRP (XRPL)
Ripple Consensus Ledger (RCL) – The XRP Ledger (XRPL) is the precursor to Ripple’s Ripple Consensus Ledger (RCL), which was launched in 2012.
XRPL functions as a decentralized economy. The XRP ledger not only maintains transaction data, but it also offers trading services for a variety of currency pairs.
XRPL is an open source protocol that allows for real-time transactions. Through a consensus method, network participants safeguard and verify these transactions.
The XRP Ledger (XRPL), unlike Bitcoin, does not use the Proof of Work consensus algorithm. They don’t rely on validating blocks to verify transactions as a result.
Instead, the network uses a consensus mechanism, formerly known as the Ripple Protocol Consensus Algorithm, to establish consensus (RPCA).
Independent validating nodes administer XRPL, which continually and directly reconcile transaction records. A Ripple Validator node can be set up and launched by anyone. Not only that, but validators can be chosen from among trusted nodes.
To guarantee transaction security, Ripple recommends that users only validate transactions using a list of known and trusted nodes. The Unique Node List is the name given to this list (UNL).
Furthermore, because XRPL is an open source distributed ledger, anyone can contribute to its development. As a result, even if the company is shut down, XRPL can continue to operate.
6. XRP Development Team
The company OpenCoin, whose CEO is Chris Larsen and CTO is Jed McCaleb, created and developed the XRP or Ripple Protocol.
Chris Larsen is the co-founder and CEO of the financial firm E-LOAN. Several firms in the field of online financial services were co-founded by me. He is also known by the moniker Angel Investor.
McCaleb: Co-founder of Mt. Gox, as well as other well-known Crypto projects including Stellar (XLM), eDonkey, Overnet, and others.
In addition, the Ripple team comprises a number of other well-known industry figures who are exceptionally educated in blockchain and cryptocurrency.
Ripple’s price might explode if it can be extended to banks more extensively and entirely revolutionize the financial system via payment networks, but it must first overcome SEC lawsuits.
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