The blockchain technology is slowly gathering a lot of buzz lately. Not only has it formed an integral part of the crypto market but also helping several tech companies transforming their infrastructure in the same manner. One such technology that has gained a lot of importance lately is the Ripple blockchain. Despite being a new technology, it is becoming popular quickly and now, it is considered as a major division of the crypto market. Owing to this, we are going to introduce the fundamental concepts of Ripple, explaining its functionality, its currency XRP, the uses and limitations, and so on.
Introduction of Ripple and its history
Ripple was first introduced in the form of a payment gateway known as RipplePay in 2004. However, in the current time, it has become a major way of transferring currencies and settling different payments worldwide. Later on, in 2012, Ripple was converted into a cryptocurrency blockchain with its own currency, XRP.
Use of this technology in cryptocurrency
Ripple is offering a new cutting-edge technology where people can make oversea transactions directly without the involvement of any third-party organization. Besides, the transaction fee or the compensation charges are also very low in comparison to other charges that are levied for international transactions.
Ripple is more secured and protects the identity and anonymity of the users in a much better manner. This is why it is becoming more and more popular with the passing days. As it is based on the concept of Internet of Value, money can now be transferred at a speed of data or information which is the one of the main reasons for the ever-growing popularity of Ripple.
XRP- Ripple’s currency
Ripple is not a cryptocurrency but a technology that can allow international money transfers and exchanges at the earliest possible rates. Owing to this particular feature, Ripple was soon integrated in the crypto market and now, it has its own currency and ledger going by the name of XRP. Even though Ripple uses XRP ledger and coins, the entities operate independently. Therefore, we can clearly say that XRP currency is indeed decentralized because it is an independent asset and not subjected to any kind of centralized body, rules and regulations.
Ripple’s transaction fee for the XRP coins is only about $0.00001. Even though it is extremely low, Ripple has ensured that scams and DDOS attacks can be kept at bay while allowing traders to invest in XRP without worrying about the overhead expenses. The XRP ledger is so fast and intuitive that it can make four payment settlements and 1500 transaction processing in just a couple of seconds.
Working of the Ripple’s XRP ledger
Rather than integrating the Proof-of-Work of Proof-of-Stake algorithms, the XRP Ledger is based on a new concept known as the XRP Ledger Consensus Protocol. This will validate different wallet information and help in processing the transactions easily. As a result, it can process all the commands from the traders’ end in the fastest possible manner. Unlike miners, independent participants are responsible for managing the new blocks added to the XRP ledger and also validation of new transactions. Each block needs to have data about the total amount exchanged till the last block, the previous ledger status, wallet’s public key information, and validation status.
Benefits of using the Ripple technology
There are several benefits of using the Ripple technology that you are definitely going to love, regardless of the fact that it is a new technology and several concerns have been raised. In this below section, we have described a few major advantages that will help you understand how amazing the Ripple blockchain and XRP are.
- It is capable enough to process about 1500 transactions in the fastest possible manner. Owing to this, you don’t have to wait for two to three business days to see the exchanged amount reflecting in your bank account.
- There is no need for mining the XRP coins and releasing the same into the ledger. This is one of the main reasons why the technology is getting so much popular.
- Several new trading platforms like www.chesworkshop.org/bitcoin-revolution/ are incorporating XRP as the new currency since it is quite similar to Bitcoin.
Ripple is being considered the latest addition to crypto market. It is different from the traditional coins like Ethereum and bitcoins but offers more flexibility and speed that one cannot imagine.