Ripple (XRP) is a cryptocurrency that is related to the Ripple Consensus Ledger. XRP is said to be the most efficient settlement option for financial institutions and liquidity providers seeking global reach, accessibility and fast settlement finality for interbank flows, with proven governance and the fastest transaction confirmation.
The original authors are Arthur Britto, David Schwartz and Ryan Fugger.
Ripple is a network created by Ripple Labs Inc., a US-based technology company. It was first introduced in 2012, where Ripple is built upon a distributed open source protocol and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value. The key purpose of creating Ripple was to offer safe, instant and nearly free global financial transactions of any size with no chargebacks or fees.
The Usage of Ripple
-It is a low commission digital currency exchange. It is cheaper than USD, as some currencies couldn’t be converted from one to another, so banks use USD as a mediator, but using dollar is a double commission and therefore Ripple is much cheaper option.
-As well fast international transactions. Average transaction time is 4 seconds. Bitcoin takes time for one hour or more and few days for regular banking systems. Ripple validates accounts and balances instantly for payment transmission and delivers payment notifications with very little latency (within few seconds). Payments are irreversible, and there are no chargebacks.
-User can basically issue his own currency for fast and cheap transaction.
In September 2018, Ripple was the second largest coin by market capitalization. It has been adopted by banks and payment networks as settlement infrastructure technology. Ripple now is the third largest digital currency, with market cap of $15.79 billion, as of May 17, 2019.
A scientific study made by two researchers from Stanford and Stockholm University that studied the money production from an energy consumption point of view and a macroeconomic level stated that running a server on Ripple was comparable to the energy needs of running an email server. Ripple payment/exchange network Ripple Labs was named one of the 50 Smartest Companies in the February 2014 edition of MIT Technology Review.
How to invest in Ripple?
For an ordinary investor, Ripple can only be a good investment if it holds the potential to gain value. It has a very strong team, a great marketing drive and a working product.
Furthermore, if you want to invest and buy Ripple, you must first open an account on a cryptocurrency exchange, then buy it for another digital currency such as Bitcoin or Ethereum. Alternatively, you can buy it directly with fiat money via crypto-fiat exchanges.
The Centralized Ripple
Many supporters of Bitcoin and other decentralized digital currencies have criticized Ripple’s centralized control as it is in direct contrast to the ideals and advantages of decentralized blockchain like the Bitcoin and Ethereum.
However, Ripple now has more than 200 banks, startups and payment companies in the U.S., Brazil, Europe, the Middle East, North Africa and the Far East in its RippleNet user network, most using xCurrent software to make cross-border payments.