1.1. ripple cryptocurrency
1.2. ripple wallet
1.3. should you invest in ripple?
It may well be hard to keep track of all the cryptocurrencies on the market, but there are some that stand out. Ripple is one such technology that acts as both a cryptocurrency and a digital payment network for financial transactions, hence the raised interest to it from banks. Ripple was released in 2012 and co-founded by Chris Larsen and Jed McCaleb. The cryptocurrency is pre-mined and its token name is XRP.
Ripple is known for its digital payment protocol, rather than as a cryptocurrency. Ripple operates on an open source and peer-to-peer decentralized platform that allows for transfer of money in any form, whether USD, Yen, Litecoin, or Bitcoin, or any other.
To understand how the system works, consider a money transfer structure where the two parties on either end of the transaction use their preferred middlemen to receive the money. The system works on mutual recognition of passwords between parties and is based on owing money that is written off from the accounts of the middlemen.
Ripple uses a medium known as Gateway that serves as the link in the trust chain between the parties in a transaction. Gateway acts as the credit intermediary that receives and sends currencies to public addresses on the Ripple network. Anyone can register and open a gateway, which will then authorize the registrant to act as a middleman for currencies exchange, maintaining liquidity, and transferring payments on the network. The XRP, acts as a bridge to other currencies. It makes no distinctions or discriminations between fiat/crypto currencies and makes it easy for any currency to be exchanged.
Ripple does not run on a proof-of-work system like Bitcoin or a proof-of-stake system. Instead, it relies on a consensus protocol in order to validate account balances and transactions on the system. The consensus exists to avoid double spending. All transaction flows among Ripple wallets are public on the Ripple ledger network.
The attractive thing about Ripple is that it improves some drawbacks of traditional banks. Transactions are settled in seconds through Ripple, despite the fact that the platform handles millions of transactions. Banks normally take days or even weeks to process such transactions for a various number of reasons rom human factor limitations to fees and fund reuse. The fee to conduct transactions on Ripple is minimal at 0.00001 XRP, incomparable with huge transactions of banks.
Ripple is the third largest cryptocurrency by market cap of over $13 billion, following Bitcoin (BTC) – and Ethereum. Unlike Bitcoin wallets, which are free, Ripple wallets require one to have at least 20XRP to create a wallet. The most popular wallets are Ledger Nano S, which is a hardware wallet that has recently added support for XRP. As a hardware wallet, it is one of the most secure ways to store cryptocurrency. Gatehub is also a popular website that allows storing XRP, as well as buying them for USD or Euro. CoinPayments comes recommended by CoinSutra reader “Dipen” as a good wallet for XRPs. It also allows storing other Altcoins. Binance is currently a growing exchange adopting cryptocurrencies for its users. If storing XRPs is needed, then Binance may come in handy.
Ripple has skyrocketed in value, becoming one of the most valuable cryptos by market cap in recent months. Many mistake it to be the same as BTC or Ethereum, however, this is a fundamental mistake, as the latter two are stores of value. Ripple is not a store of value, but a medium of value exchange. There is no need to mine XRP, as it is already mined. It is, in essence, a token of utility on the Ripple network. Hence there is a fee being paid for transactions on Ripple. Whether investing in it is a question or not is one that time will answer, but given its high market cap and the fact that it is successfully competing with banks and is not affected by hype, but rather than real market demand for the network’s services is a good reason to consider Ripple for investment.
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