The first thing to know is that digital Ripple is both a platform and a currency. The platform is an open-source protocol designed to allow fast and cheap transactions.
Unlike Bitcoin, which was not intended to be a simple payment machine, Ripple’s digital currency will drive all international transactions worldwide. But is it possible for the fiat currencies to disappear in a few years?
The Ripple platform or platform has its digital currency (XRP), but it also allows everyone to use the platform to create their coins via RippleNet.
What is the RippleNet?
RippleNet is a network of institutional payment providers such as banks and financial services companies that use solutions developed in cryptocurrency to provide a global money-sending experience.
For example, John lives in New York and has a box of chocolates that he does not need. He might be very interested in watching a football match, but he doesn’t have a ticket. Ms. Yonela lives in London and has a rare stamp that she would like to sell for a box of chocolates. Finally, we have Mr. Brown, who lives in Alaska, is looking for a rare stamp, and has a ticket to a soccer match.
In our current system, these people will never find each other.
But in the digital world of Ripple, they can say the platform allows you to make payments in any currency, including Bitcoin, and it has a minimum internal trading order of $ 0.00001. Yes, that’s the right amount of zeros. The only reason it is not free is to prevent DDos attacks.
What is XRP digital Ripple?
XRP is a symbol used to represent a value transfer across the Ripple network. The primary purpose of XRP is to be a middleman for others – both for cryptocurrencies and cash exchanges. The best way to describe XRP is “the Joker.” If you want to exchange dollars for euros, the transaction cost on the digital ripple platform is $ 0.00001.
Interesting fact: After the transaction, the $ 0.00001 amount “disappears” from the platform and cannot be recovered.
Who created digital Ripple?
The protocol was created as a functional prototype in 2004. But the real story began in 2013, when EDonkey’s founder, Jade McCallb, invited a group of prominent investors to invest in Ripple Labs.
Who are the founders of Ripple Labs?
Chris Larsen is an angel investor, business manager, and privacy activist and is considered the wealthiest person in the cryptocurrency space. He is best known for co-founding various online financial services companies, starting with Mortgage Online in 1996.
Jaid Malkalb is a well-known programmer and entrepreneur. He founded several cryptocurrency startups, including Ripple, Stellar and eDonkey, and the cryptocurrency exchange Mt. Gox.
Important uses of Digital Ripple
It reduced the exchange commission. Many currencies cannot be converted directly into one another. So banks need to use the US dollar as a middleman. So there is a double commission: converting Currency A to US Dollar and US Dollar to Currency B. Ripple is also a broker, but it is much cheaper than the US dollar.
Fast international transactions. The average deal duration is 4 seconds. Compare it to an hour or more for Bitcoin and a few days for regular banking systems. It is assumed that digital Ripple will soon replace the SWIFT system, precisely because of the speed of financial transactions.
Payments system. The user can, in principle, issue his currency for fast and cheap transactions.
What are the advantages of the Ripple?
- It was initially designed as a daily payment system, so it has much more power than Bitcoin. As a result, transactions are much faster and cheaper.
- It started as a formal organization because its main focus was for banks to use it. So it’s not about multiple regulatory controls, as it is with other crypto investments.
- It can be exchanged for any currency or value (such as gold) with a standard minimum commission.
Is it a good investment?
No investment is 100% safe, and every decision has its risks. In any case, it is up to you to choose. However, here are some of the pros and cons to help you.
- Ripple is an official organization that enjoys the trust of many banks. It is not another version of blockchain technology.
- It is not inflated. All chips are initially mined and are already there.
- The more banks it uses as a trading platform, the higher its value. If all banks decide one day to use it as a single bank currency instead of handling redundant foreign currencies, it will be a good fortune for all of those who have invested in Ripple.
- Centralized. The whole idea of cryptocurrencies is to avoid central control. Since the chips are already drawn, Ripple developers can determine when and how much to release or not. So it is the same as investing in a bank.
- Monopoly. Especially since Ripple Labs owns 61 percent of the coins.
- It’s very open-source and intelligent, but once you get to the code, there’s a good chance that many people will try to crack it, and most likely, some of them will succeed.