What Is Ripple?
Ripple cryptocurrency in one of those currencies which code was written from scratch. What does it mean?
Currently, there are a lot of various cryptocurrencies and their number constantly rises. After the great Bitcoin boom on the market, a large number of cryptocurrencies and applications appeared. They spread all over the world. And, as a result, Ripple currency appeared.
Ripple is a global system of mutual settlements, which allows you to transfer almost any currency to anywhere in the world in a few seconds.
Ripple connects banks, digital asset exchanges, payment providers and corporates through the RippleNet.
Currently, Ripple is focused on working with banks, offering them a more economical way of making money transactions all over the world. A large number of banks co-operate with Ripple digital currency.
Ripple is the name for digital currency (XRP) and an open payment network.
Ripple technology is a technology of interbank transfers. It is technology which helps banks to transmit money from one country to another, from one bank to another. If Bitcoin allows one person to transmit his money to another, Ripple does the same but with banks. It does not use any third party. Banks use this technology in order to perform secure, fast and transaction with minimal fees.
Ripple’s capitalization includes more than 8 billion dollars. This proves that Ripple’s cryptocurrency is trusted today by users of the network, consider it promising and reliable. Ripple is focused on the principle of “Internet values”. What does it mean? It means that in the current era of technology, money transfers should be made at the same speed as information exchange. With Ripple, you do not have to pay a lot and wait several days before your money reaches the recipient, even if he is on the other side of the world.
Ripple may be represented as a transaction system processed via the Internet, based on certain “arrangements” between the Ripple network nodes. So-called “register” (ledger) is the main part of the Ripple system. It is shared between all servers. A new ledger is created every few seconds.
So, the main Ripple function is to connect various payment systems together. Ripple wants to release people from the “walled gardens” of financial networks. Because every provider makes its own payment system it becomes more difficult to interact with various users, using various payment systems as well. To solve this problem, Ripple was designed. It connects different payment systems together, making the process of money transferring much easier.
Moreover, Ripple does not include any commission, instead, it has a number of advantages, such as instantaneous money transactions and the fully open source code of all the system components.
Ripple is exclusively used by banks. The main Ripple idea is to allow banks sending any type of asset (EUR, USD, gold and more). The process of money transferring occurs instantaneously.
It should be mentioned that Ripple is not the same as Bitcoin. Ripple technology is based on “principle of trust”. The idea which leads to Ripple creation is much older than Bitcoin.
The History of Ripple?
In 2004 RipplePay which was the predecessor of the Ripple payment protocol, was developed by web developer Ryan Fugger in Vancouver, British Columbia.
Fugger, after working in the local exchange trading system in Vancouver, came up with the idea to create a decentralized monetary system, allowing individuals to create their own money.
The first step to this new money system, RipplePay.com was launched in 2005. The purpose of this idea was to provide secure money transfer options for the online community members via the Internet, which leads to a new idea developed by Jed McCaleb and David Schwartz.
Jed McCaleb and David Schwartz developed a new digital currency system, which did not use mining. Here transactions were verified by consensus among members of the network, which is quite different from Bitcoin money system. The updated Ripple version eliminated online exchanges. It uses less electricity than Bitcoin, and the transactions are much faster.
In August 2012, Chris Larsen and McCaleb talked to Ryan Fugger and discussed their idea of digital currency. Chris Larsen and McCaleb became co-founders of the company. In 2012 the team founded the corporation OpenCoin, or OpenCoin Inc, which developed a new payment protocol, known as the Ripple Transaction Protocol (RTXP). This protocol was based on the Ryan Fugger concept, providing direct money transfer between individuals (from one person to another). OpenCoin Company creates own currency –XRP. In September 2013, this company changed its name. OpenCoin was renamed to Ripple Labs Inc.
Initially, the Ripple Labs Inc. didn’t plan to create its own cryptocurrency. It was aimed at the banking sector – to provide a unique form of payment for banks. Instead of this, Ripple connects banks, digital asset exchanges, payment providers via the Ripple Network, enabling acceptable money transfer all over the world.
How Does Ripple Work?
Nowadays there is a great variety of digital cryptocurrencies, and most all of them are based on the same function, having some slight differences. A lot of people have already acquainted with Ripple system, but there are those who even did not hear what the Ripple is.
In order to understand how Ripple works you need to realize all the process of money transferring from one country’s bank to another. In such money transferring a third party takes place. It is necessary in order to protect the funds of one person (who sells money) to another (receiver).
So, what is Ripple? How does it work?
The principle of Ripple work is similar to the contractual-based real exchange operations which do not require paying commissions or charges. Imagine that you are in point A, and you need to transfer money to point B. You are not able to do it personally because the point B is in too far from you. How can you transfer funds? There are two ways: you may send it through the bank transfer or find someone in your city who has a rich relative or friend where you want to send money (to the point B). So, you decide to give you money to the man who lives in your city and his friend (or relative) transfers the money to the point B to the place you need.
XRP work is similar to bank work. But instead of permitting any bank or institution to be a part of its system, Ripple has a great policy system with the two-way verification process, which is very helpful to perform the process of transactions. If the identity is not confirmed, the transaction will not act at all. Ripple has a powerful system of money transaction, which allows sending money instantaneous from the point A to point B.
Ripple performs financial transactions of various currencies in the easiest way. It is used to convert one currency to another. Ripple technology allows banks to send payments all over the world on different networks. Like other cryptocurrencies existing nowadays, Ripple’s cryptocurrency, which is well-known as XRP, also uses the blockchain technology. But, unlike other cryptocurrencies, it is aimed to regulate and facilitate the transfer of funds to banks.
Ripple is a digital currency functioning to perform instantaneous money transaction all over the world. Ripple is not a coin. It is a new cryptocurrency network which has its own coin called XRP.
Someone may ask what the similar features in bitcoin and Ripple are. Yes, in some ways they are similar. Ripple’s XRP, as well as Bitcoin, is a digital currency, which is based on mathematical formulae. Both these currencies can be sent from one account to another, P2P, without the need of any third party.
What Is XRP?
XRP is a form of cryptocurrency which exists only in the Ripple system. XRP can be sent from one Ripple account to any other Ripple account. XRP can be traded but not “mined”. Instead of mining, Ripple confirms the transaction with a consensus of the network participants. It eliminated the dependence of centralized exchanges. XRP is not tied to USD or gold. It can be used as an intermediate currency in institutions. It has one great benefit which leads to the transaction costs: they are very low.
Ripple Network System
You have already acquainted with the Ripple work. But how is it connected or how does it interact with the whole world? It is explained by the one world-“gateways”. Gateways act as a link between The Ripple network and exchanges, stores or other services, which allow you to make purchases easily and instantaneously (in a few seconds).
Just add the correct gateway and you will be able to change your currency to another in one click. It means that gateways serve as an open platform between the Ripple network and all the supported payment system types. Moreover, they allow instantly convert your cryptocurrency into dollars and pay them to the store you selected. To make it short, gateways are the businesses that link the XRP Ledger to the rest of the world.
How To Invest In Ripple?
With the help of these “new money”, many were able to earn a lot. That is why a lot of investors are interested in Ripple nowadays. Ripple is the third highest currency behind Bitcoin and Ethereum. Ripple has a number of benefits. In order to invest in Ripple, you need to know all the information about it: why to invest in Ripple, where to buy it and what are the best Ripple wallets.
Investing in Ripple means the physical purchase of the cryptocurrency at the site of specialized exchanges, such as KRAKEN, Poloniex or BitStamp.
Taking into consideration the investment Ripple prospects, its price will increase with time. It means that if you buy this cryptocurrency today, it will be much more expensive to sell tomorrow.
You should know that Ripple is now as one of the most attractive and promising digital currencies for growth. Now the price of Ripple’s cryptocurrency continues to grow, and all the investors earn quite well.
Why Should You Invest In Ripple?
Like most other cryptocurrencies, Ripple can be bought on different cryptocurrency exchanges. Currently, Ripple is listed on numerous exchanges.
Today a lot of people are interested in Ripple. They want to know where to buy it, what are the benefits, how to invest in it. The question which concerns the process how to download and how to install the Ripple wallet is not less