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A beginner Guide to Ripple (XRP)

Ripple is phenomenal technology predominantly used for a financial transaction that is envisage as both a cryptocurrency and a decentralized network. Ripple is a privately-run company that harnesses the power of distributive ledger technology to build a global payment and exchange network (Ripplenet).

Ripple was primarily a profit-technology platform, but it is also a cryptocurrency referred to as XRP, it was initially put forward by Ripple Labs. Previously, the company provides a service of real-time payment settlements and currency exchange services to financial institutions such as banks and payment processors.

Fast and frictionless transactions of Ripple paves the way for its massive adoption by enterprises and individuals. As a result of the bullish trend of investors towards Ripple, it emerges as the third-largest cryptocurrency by market capitalization.

As of today, its current market valuation stood at $90 billion.

Even though Ripple can be used as a default medium of exchange for the products and services, but it was not designed for consumer use. Instead, it is a token that was designed specifically to provide liquidity to banks as is highly feasible for cross-border remittance transfers.

In contrast, all the traditional blockchain-driven cryptocurrencies that are reliant on the decentralized network of miners for their security, transparency, and anonymity, Ripple harnesses the potential of validating servers for its security whereby internal ledger guarantee transaction based on the consensus.

Ripple coins do need any energy-intensive mining rings because all the coins are already mined before getting injected into the ecosystem.

As of today, 38.7 billion Ripple coins are in circulation, and Ripple Labs will inject more coins into the market based on the market need.

Explanation of Ripple

Ripple is a reevaluation of an obsolete idea that dates back to medieval times. At that time, banks didn’t exist thereby if you want to send money to your friend who lived in a different geographic location, you should have to approach the payment agent who will get this job done for you.

 

The most crucial aspect of this methodology is the trust factor. You won’t be able to send money to your friend if there is a trust deficit between your agent and your friend’s agent.

 

Ripple transform the obsolete and inefficient cross-border remittance transfer system by devising an ecosystem that connects payment agents of both the sender and recipient

 

Additionally, Ripple proposed a solution for eliminating the trust deficit between the payment agents. If a third agent has known yours’ and your friend payment agent then he can act as mediator. On Ripple, these agents are regarded as the “gateways” and usually, they’re banks that accept deposits to transfer money.

History of Ripple

Ripple was first initiated in 2012, but the idea behind it emerges in 2004. In 2005, Ryan Fugger inaugurated RipplePay.com as a successor to the blockchain-oriented cryptocurrencies.

 

RipplePay lays down the foundation of secure online payment, but it failed to acquire a hefty market share at that time.

 

In 2011, Jareb McCaleb and Chris Larsen approached Fugger to transform RipplePay into a digital currency system where the transaction was verified by the community consensus. Instead of relying on miners to accomplish this job like a Bitcoin network.

 

Back in 2012, strides of reforms were done to remove the inefficiencies in the Ripple Transaction Protocol. The protocols were designed specifically to lay down the foundation of direct and instant money transfer between two peers, without imposing any extra transaction processing fees for the traditional money transfer service.

 

To ensure the highest level of liquidity, the protocol paves the way for the creation of a new token known as Ripple XPR.

History of Ripple

Ripple was first initiated in 2012, but the idea behind it emerges in 2004. In 2005, Ryan Fugger inaugurated RipplePay.com as a successor to the blockchain-oriented cryptocurrencies.

 

RipplePay lays down the foundation of secure online payment, but it failed to acquire a hefty market share at that time.

 

In 2011, Jareb McCaleb and Chris Larsen approached Fugger to transform RipplePay into a digital currency system where the transaction was verified by the community consensus. Instead of relying on miners to accomplish this job like a Bitcoin network.

 

Back in 2012, strides of reforms were done to remove the inefficiencies in the Ripple Transaction Protocol. The protocols were designed specifically to lay down the foundation of direct and instant money transfer between two peers, without imposing any extra transaction processing fees for the traditional money transfer service.

 

To ensure the highest level of liquidity, the protocol paves the way for the creation of a new token known as Ripple XPR.

Conclusion

Undoubtedly, Ripple is more convenient for the financial services sector that any other cryptocurrency that’s why it is gaining too much traction from the market.

We sincerely think it could very soon revolutionize the whole financial landscape and the global payment industry.

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