Ripple is a technology that works both as a digital payment network and a cryptocurrency for financial transactions. Ripple was first launched in 2012; it was co-founded by Jed McCaleb and Chris Larsen. This network is popularly known for its digital payment protocol. Ripple operates as a peer-to-peer, decentralized, and open-source platform that allows seamless transfer of money in any form, whether it is Bitcoin, Litecoin, or USD.
Ripple is a peer-to-peer technology known for its digital payment network and protocol; it has its own cryptocurrency XRP. XRP has been created for use on the Ripple blockchain. Using a common unit of currency helps in easier recording of transactions; the sender who wants to transfer money converts their currency to XRP and transfers it to the recipient. In turn, the recipient converts XRP to their native currency; here, XRP functions as an accounting entry. Using Ripple’s global network, financial establishments process their user payment reliably, instantly, and cost-effectively around the world.
Bitcoin, as the most well-known cryptocurrency with easily the largest market cap, is an easy comparison to make when discussing other cryptocurrencies. However, Ripple is quite different from bitcoin in a number of ways.
Ripple issues the third-largest cryptocurrency (based on market capitalization) in the world. But its value proposition doesn’t stem from being a Bitcoin copycat. It actually stems from being one of the unique cryptocurrencies on the market. In Ripple, you can transact purely in IOUs all day, every day, without touching XRPs for anything other than the fees. This ties to the central value proposition of XRPs – being the universal medium of exchange.
Ripple is a technology mostly known for its digital payment network and protocol. However, it also has its native cryptocurrency, XRP. Ripple’s primary process is a payment settlement asset exchange and remittance system similar to the SWIFT system for international money and security transfers that banks and financial intermediaries use. Rather than use blockchain mining, Ripple uses a consensus mechanism through a group of servers to confirm transactions. Ripple is one of those cryptocurrencies which has a highly focused approach and future vision. With several banks and financial institutions already getting on board, it appears to be on the path of success. Apart from that, according to the recent news on Ripple, the crypto might see tremendous growth.
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