What Is Ripple: Everything You Need to Know
I am sure you have been using Bitcoins for quite some time now; as a result, you must be dealing with huge transfers of cryptocurrencies. And this where Ripple comes into play. If you do not know what ripple means, it’s absolutely fine.
Do not worry; you have clicked on just the right article. In this article, I will explain what a ripple is and how different it is from Bitcoins and other cryptocurrencies. Ripple is a payment company based out of the United States of America that allows users to make payments in cryptocurrencies. You can start trading cryptocurrencies on btc circuit.
Ripple is also the producer of the cryptocurrency called XRP, which is the fourth most traded cryptocurrency in the world. Bitcoins continue to be at the top like usual. XRP has a market capital value of $13,796,479,313 USD.
Everything You Need To Know About Ripple
If you want to know about all the details of Ripple, you first need to know about XRP, which is the prime cryptocurrency that uses Ripple. First, you need to know about Bitcoins and how it works; otherwise, you won’t understand a single thing about XRP.
1. Differences between Bitcoins and XRP
The major difference between Bitcoins and XRP is that Bitcoin uses blockchain technology, which is based on the concept of a public ledger, which enhances the experience of making payments, whereas XRP is a cryptocurrency that is mainly known for its digital network and protocol. Keeping XRP aside, Ripple is considered to be a lot better as a mode of settling payments, exchanging assets.
2. Method of Transaction
Ripple does not use the Blockchain technology; instead, it uses its own dedicated Ripple Network, which uses a special consensus mechanism via multiple servers to approve transactions.
The ripple network conducts a poll, the result of the poll is judged by the servers and nodes on the network, and after authenticating it, the payment gets approved. This unique system of verification prevents fraudulent activities, and furthermore, it helps to maintain the XRP decentralization. It is undoubtedly much faster and safer than other cryptocurrencies.
3. Methods of Mining XRP
Ripple has stated that the maximum number of XRP tokens to be released each month would be 1 billion. Currently, there are above 50 billion in circulation. Ripple has clarified that any extra amount of XRP will be a throwback to an escrow account.
This makes sure that there are fewer chances of fraudulent activities. Users of XRP use the smart contact facilities to mind XRP. Bitcoins transactions require a transaction fee, XRP is mainly used to enhance the experience of transferring assets, but it is also rising as a leading payment method.
4. The Time It Takes To Process And Mining
This is an area where XPR has the upper hand. Bitcoins transactions can take from a few minutes to an hour, and that too with a heavy transaction fee, but XPR transaction happens in a matter of seconds, and the transaction fee is also significantly less compared to Bitcoins.
The funny thing is the production of Bitcoins is limited to 21 million, but XRP already has 100 billion coins mined.
5. Places where XRP are used
Bitcoins are mainly used by investors and businessmen for transactions and trading purposes. It is viewed as a virtual digital currency. Bitcoins use blockchain technology, whereas Ripple is mainly used in banking sectors.
More than 300 financial institutions use XRP, and it is used in more than 40 countries. The ripple network is competing with Blockchain technology as it sees a lot of development in the financial institutions.
The reason why most investors haven’t accepted ripple technology is that it is way too complicated, whereas Blockchain technology uses the simple concept of a public ledger database. The only advantage that Ripple technology provides over the blockchain is its faster processing time and lower cost.