Perhaps most of your friends have been talking about bitcoin last year but the truth is, there are thousands of cryptocurrencies. The community often refers to them as altcoins. Some of these altcoins are just bitcoin copycats while others serve a completely different purpose.
Perhaps most of your friends have been talking about bitcoin last year but the truth is, there are thousands of cryptocurrencies. The community often refers to them as altcoins. Some of these altcoins are just bitcoin copycats while others serve a completely different purpose. While all of them utilize some kind of a blockchain network, sometimes the technology that underpins a certain token is unique.
Ripple is one of Bitcoin’s bitter rivals despite the fact it is entirely different. The token running on the top of the Ripple network is the XRP. The XRP itself is not a currency like litecoin, Bitcoin or ether. It is easier to think of it as a way of settling a payment. Ripple was intentionally built to process payments faster and transparently. Try to assume the XRP as a courier – the sender converts Euros into XRPs and transfers it to the receiver who later converts the XRPs into USD. Thus, the whole process happens quickly without the need for exchange fees or mediators.
Renowned financial institutions like Fidor Bank, Santander, Bank of England, Saudi Arabia Central Bank, Commonwealth Bank of Australia and more the 60 Japanese and South Korean banks already praise the technology.
While Bitcoin is mined through the computing power of network users, the XRP is not minable. 55 billion tokens are created and a smart contract releases one billion tokens each month for crypto trade. This, on one hand, saves hundreds of megawatts but on the other hand, gives more of a centralized nature to Ripple. Furthermore, the blockchain is not equally spread among the community because a group of trusted partners controls the money supply and all the transactions. As far as we can tell, the trusted partners include the above-mentioned institutions.
Traders do not buy Ripple directly but instead have to purchase bitcoin or ether first and then exchange them for XRPs. What’s more, you can’t pay your dinner with Ripple because it was never meant to be a currency but rather a transfer method for other currencies and commodities.
If you wish to find out more about how to invest in Ripple, you can check this article.