What is Ripple?
admin,June 7, 2018
Ripple has been in the markets since 2012 and has gained much fame in Crypto markets along with Bitcoin.
Ripple is not only a token but both a digital currency and a network. The Ripple Network, called RippleNet (AKA Ripple Payment Protocol) is an open payment network, peer-to-peer and real time payment system which is used to transfer both fiat currencies (USD, GBP, JPY) and Ripple currency (XRP). The two different products existing on this network distinguishes it from Bitcoin’s blockchain and Ethereum network.
The goal of Ripple, according to their website, is to break free from the traditional financial network – ie. credit card, bank transfer, Paypal and other institutions which require fees, charges and delay processing time. Just like Bitcoin, Ripple doesn’t depend on any financial institutions to manage and secure the transactions. You can send the money globally without borders and time limits while the financial institutions process their customers’ payment instantly, wherever they are.
Quoted from David Schwartz, Ripple’s chief cryptographer :
“Payment systems today are where the email was in the early ’80s. Every provider built their own system for their customers and if people used different systems they couldn’t easily interact with each other. Ripple is designed to connect different payment systems together.”
The company plans to create 100 billion ripples. Half of them will be retained by the company, while the other half will be released to circulate in the market. Unlike Bitcoin, Mining in Ripple is not possible. Ripple only can be generated by the one who created it.
So, the only way to get Ripple is to buy it in a Cryptocurrency exchange. You can exchange your fiat currency (debit or credit card and Paypal) to Ripple at a certain price (which will be informed by the exchanger). Some familiar Ripple exchangers are Coinbase, BitPanda, CoinMama. Besides buying with Fiat Currency, you can exchange your crypto coin for Ripple such as Bitcoin to Ripper, Ether to Ripple. The exchangers who accept this are Shapeshift and Binance.
The flexibility that Ripple has, has made it possible to collaborate or partner with, not only with individuals all over the world but also other financial systems. Ripple can be integrated into traditional bank systems. Furthermore, Ripple could become the bridge or gateway for other cryptocurrencies, like Bitcoin, to the mainstream world of finance, promising fast transactions and stability.
Ripple doesn’t charge fees in transactions, but takes a “small portion of a ripple” (equivalent to ~1/1000th of a cent) from each transaction. Ripple rather than the company takes the deduction, this is as a protector against any individuals who may attempt to swamp the system with millions of transactions at once.
While this seems promising, Ripple fluctuates. From coinmarketcap.com, Ripple reached its highest price on Jan 4, 2018 at $3.65 and now the price has fallen to around $0.60.
So will you consider buying into Ripple?