What Is Ripple (XRP)?
Before we get into details, it is very important that you understand that ripple possesses a dual-status; A platform and a digital currency. The platform itself is an open-sourced platform well known for its fast transaction rate. It is also known for its cheap rate charge for the transactions being carried out.
Unlike other cryptocurrencies, Ripple aims to be the most used payment platform worldwide through its offered currency, XRP, and its other services.
What Exactly Is RippleNet?
RippleNet is a network that allows the developed solutions by ripple to be available for payment providing institutions. It provides a frictionless experience for the transaction of monetary value globally.
This platform allows interested individuals to make payment using any currency. This is being carried out with a cheap internal commission rate.
Banks are focused on blockchain because that’s where the increase of the value that can be provided for their end customers in terms of efficiency, speed, accuracy, and awareness. It all kicks in using blockchain technology and in Ripple’s case, its net of value version of that creates a significant value of proposition for their customers worldwide. Ripple’s (XRP) Global Head of Strategic Accounts, Marcus Treacher
XRP is the accompanying token that is used for the exchange of value in association with the ripple network. XRP is developed for the main function of being the mediator for both Fiat currencies and cryptocurrencies on exchanges.
The XRP is also well known for its use in paying for the transaction levies doe the transactions being carried out on the platform.
Ripple’s Consensus Algorithm Consensus
Uniquely, Ripple does not have a blockchain as its foundation in comparison with the other cryptocurrencies. It employs its technology for the purpose which blockchain technology provides. That is the verification and authentication of transactions.
The consensus mechanism provides a platform where all the participating nodes have to be in consensus before an agreement is reached. This ultimately means that if a node does not come in agreement on a particular transaction like the other nodes, the transaction is not completed.
Ripple (XRP) Product Suite
Ripple has three main projects on RippleNet. With these products, the international payment network company has been growing at light speed pace. 90+ customers and 75+ banks have partnered with them over the last couple of years. Thanks to these products, Ripple is on pace to take significant shares from Swift.
xCurrent represents Ripple’s enterprise software division. It allows banks and financial institutions to settle cross-border payments instantly and provides the fastest transaction tracking. Banks can communicate back-and-forth through the system.
xRapid is sorely for institutions and payment processors. xRapid reduces processing costs and increases transaction speed with real-time payment and processing.
xVia main targets are corporations, banks and financial institutions. xVia functions using an Application Program Interface (API). Therefore, does not require any software installation. Payments can be processed and sent anywhere around the world seamlessly.
Benefits Of Ripple Platform
The Ripple platform is well known for its wide applications and use cases. Some of these include:
Low commission on transactions
Ripple is well known for its low rates when it comes to the transaction cost. As a means to attract more users and facilitate more transactions, the Ripple network transaction commission rate is near zero.
Many currencies are not eligible to be converted directly to each other. Hence, banks and other institution use the US dollar as a mediator. In the same way, XRP is being used as a mediator in the cryptocurrency world for different currency exchange.
One of the major reasons why cryptocurrencies, in general, are being accepted is their use in carrying out international transactions. These transactions could take up to a day or more with centralized administrators.
With Ripple and other cryptocurrency platforms, the time required has been reduced to about 4 seconds. This facilitates a better and faster transaction rate for more transactions to take place even on the international scene.
Ripple platform allows its user to create personalized currencies for a faster and cheaper transaction rate. These are tailored to the need of the customer.
With the payment ecosystem of the ripple well managed, these transactions are monitored and recorded for accounting purposes.
Can Ripple (XRP) be Mined or Minted?
The number of released XRPs is set in stone; meaning it can never be mined or minted. Ripple has a total of 100 billion XRP coins with 42.89 coins currently in circulation. 60% of the coins are held in ledger escrow by Ripple Labs, formerly OpenCoin.
The company’s policy allows the release of 1 billions XRPs per month. There isn’t any anticipation the company’s heads will release the floodgate. This is a well planned project, so the coins will be made available for trading responsible. Ripple is the Swifts of the future. Are you ready for the ride?
Why are There So Many Ripple Coins (XRP)?
I was one of the first, if not the first, people going around encouraging individuals to buy and hold Ripple (XRP). At the time Ripple was only 4 cents. Some did invest and others didn’t. Those that did benefited greatly when Ripple’s (XRP) price reached an all time high ($3.40) in January 7, 2018.
One of the main concerns often expressed by those attending my workshops was Ripple’s circulating supply of 42.89 coins. It is absolutely true that a coin with such huge supply will need an enormous marketcap to be highly profitable to its investors.
But, one thing these people didn’t know is that Ripple’s supply is set in stone; meaning it cannot be mined or minted. The better news of all is the fact that every time a bank process a transaction using XRP that fraction of XRP used to complete the transaction is shredded and gone forever.
Ripple’s supply, overtime, will only decrease, as a result and demand will increase due to the shrinkage of the supply. If Ripple didn’t release a huge amount of XRPs, they would eventually run out and would be light out for the company and its investors.
Ripple as a platform and XRP as its token are two main aspects of this platform. they are well known for their functionality and their investment platform. Due to its increasing usefulness, it is not only utilized as a means of transactions only. It is also widely used as an investment opportunity just like bitcoin and other viable cryptocurrencies