Ripple is an open source platform which allows doing cheap and fast transactions.
I have put together this complete beginner guide for you. I am going to discuss everything you need to know about Ripple (XPR).
Ripple is one of the top five cryptocurrencies and on the top of the list is as usual bitcoin and Ethereum is holding a second position. Ripple is in the third position.
We are going to cover every aspect of ripple for you, so have patience and read it till the end. You are going to learn so many new things about Ripple in this article you may have not heard before.
For deeper information about Ripple keep reading. The topic I am going to cover are:
- what is Ripple (XPR) ?
- What is RippleNet – How does Ripple Work?
- What is the Ripple protocol Consensus algorithm RPCA?
- Uses of the Ripple.
- Banks Support Ripple.
- Benefits Of Ripple.
- Is it safe to invest in Ripple?
- How is it different from Bitcoin?
- Where can you buy XRP?
- Which wallet to save XRP?
- Conclusion
So, you must be thinking what is Ripple (XPR)?
Ripple was founded in 2012 by a San-Francisco Fintech company name Ripple Lab Inc. The aim of this company was to provide instant, secure and affordable transaction platform.
Brad is the CEO of Ripple
Ripple has built upon the open source an internet protocol. Ripple has an aim to increase the efficiency of the transaction between financial institutions. The word Ripple is most of the time used to refer its digital currency XRP.
But they allow other people to use this platform and create their own RippleNet.
What is RippleNet – How does Ripple Work?
Might be you have not understood what actually Ripplenet network does and how it helps individuals. Here is an example for you.
Justin lives in Newyork and has a cookie box he does not need. He is just interested in watching a football match. But he does not have a ticket.
Adam who lives in a California has a rare book which he would like to giveaway for a cookie box.
Annie who lives in Los Angles has a ticket for a football game and has not any interest in a football game. But want to read an interesting or a rare book.
We are living in a system where we don’t have sources to find each other and make our not valuable things valuable.
But in the Ripple platform, you could by saying “Hey, I have a cookie box but I want a football game ticket”. Then Ripple network will look for a shortest and efficient way to make it happen.
Besides it, it allows making payment in any currency including bitcoin. The minimal transactional fee is $0.00001. It is only because of preventing the system from DDOS attack.
What is the Ripple protocol Consensus algorithm RPCA?
As I told you before that Ripple has a distinctive way of working than Bitcoin and Ethereum. It does not have a blockchain but uses its own technology RPCA to verify transition and make sure everything is ok.
Word ‘Consensus’ means that if every node agrees with the rest then it means there is no issue.
Here is an example: Suppose there is a place where ten wise man lives and a city need all of them agreed on one thing to make a decision. The decision could be anything like about the release of prisoner or rises of tax etc. But if one of them disagree then nothing will happen until we figure out what is his problem.
Pros of Ripple
- Low commission currency exchange
As you all probably aware of the fact that many currencies can’t convert directly with each other. That’s why the banks use the US dollar as a medium to convert currencies. Therefore banks take a double commission for converting money.
They will convert A money to US dollar and again US dollar to B money. Ripple also works as mediators but is much cheaper than US dollar.
- Fast Worldwide Transactions
Regardless of cheap commission Ripple is a fast international transaction mediator. The average transaction time of Ripple is 4 second. If we compare it with Bitcoin which takes hours for the transaction and regular banks take days.
- Payment ecosystem
It is an interesting fact that a user can create his/her own currency for transaction. For example, an individual can create a currency to buy a football game.
Banks Support for Ripple
- Yes Bank
- Santander
- Axis Bank
- Westpac
- UBS
- Union Credit
- NBAD
Benefits Of Ripple
There are so many benefits of Ripple that can amaze you. Here are a few important ones I am going to highlight in this post.
- More powerful than bitcoin because it is a day to the day payment system. Moreover, it is the fattest and efficient platform in a transaction.
- An official organization started Ripple. So their main goal is to be used by a bank.
- Ripple has an ability to change in any currency including gold etc with a minimal commission.
Is it safe to invest in Ripple?
As I told before in 8 Best Cryptocurrency To Invest In 2019 article that what are the best cryptocurrencies for you to invest in.
As you all know that there is not a single place in this world where investment is 100% safe. There is always risk include in your any decision. Regardless of all the fact following are some advantage and disadvantages for you.
Advantages:
- As I mentioned above that Ripple is the most trusted digital currencies by many banks. Because it is not a company with no name but there is an organization behind it.
- All the tokens have already existed, and there is no doubt of inflation.
- Ripple currency is climbing the currency chart and now is on 3rd position.
- The XRP value will be increased if banks start to use it as their transaction platform.
Disadvantage:
- It is centralized, but the cryptocurrencies are recognised for decentralization. Ripples developer can control its number of releasing or not releasing. It is like a bank.
- There is also on another drawback that ripples lab has owned it 61 percent of coins.
- There are chances of being hacked despite its open source and very smart built.
Difference between Ripple & Bitcoin
The main contrast between Ripple and Bitcoin is that:
- Ripple is centralised but Bitcoin is decentralised.
- Bitcoin is blockchain based technology but Ripple is not.
- Ripple uses HashTree to compile the data.
- The main focus of Ripple is to move money across the world fast.
- Token of Ripple is not mined like Bitcoin or other cryptocurrencies.
Where can you buy XRP?
There are different platforms available where you can buy XRP. You can buy it from these exchanges.
- Binance
- Bittrex
- Bitstamp
- Kraken
- Bitfinex
There are many other different places where you can buy but these are the most popular and trusted one.
Which wallet to save XRP?
When you will buy XRP, you must have to hold them in a wallet safely. I am going to share with you the best wallet for XRP.
The ledger Nano S is the most used hardware wallet, its support XRP storage. As it is a hardware wallet and it is safer to store your cryptocurrency and easy to use.
I will always recommend using a hardware wallet.
It is another one of the most used wallets, Toast Wallet is an open source wallet. It is available on Windows, Mac, Linux, IOS and Android. It is a software wallet and I will not recommend you to store a large amount of XRP.
Conclusion
I hope you could understand now What Ripple is and how it’s work – It allows almost immediate cross border transaction with cheap cost. Ripple is the 3rd biggest coin by market capitalization.
Moreover, Standing at the same position for a long time is not an easy task but XRP is doing it for a long time. Ripple is reaching their goals by doing all the advancements in the system and adding more banks to their system.
Ripple holds significant financial capital and doing all the effective partnership with big companies. Besides, if XRP got to succeed in gaining Worldwide adoption then the transaction amount will be tiny as compared to current costs.
But nothing is happening like this for now. But we can be hopeful for a change.
What do you think about Ripple and XRP? Are you going to invest in XRP in future or have you invested? Let me know by commenting below and if you have any query feel free to ask.
I am going to cover many other cryptocurrencies topics that you should know except What is Ripple (XPR) – A complete beginner guide. So keep visiting our Blog or bookmark our website and visit it daily or weekly for the latest cryptocurrency updates.
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