What is Ripple?
Ripple is a technology that can be used in the form of a cryptocurrency and a digital payment network for carrying out financial transactions. It first came into existence in the year 2012. The technology was co-founded by Jed McCaleb and Chris Larsen.
According to the latest report, Ripple has emerged as the third-largest cryptocurrency by market cap as of August 2019. Ripple has gained more popularity for its digital payment protocol rather than its cryptocurrency XRP. It is worth noting that it functions on an open-source and peer to peer decentralized network that permits a smooth transfer of money in any form.
What is XRP, and how does it work?
XRP is known as the digital asset of Ripple. It possesses the capacity to settle the payment in just 4 seconds. It can effectively take care of a whopping 1500 transactions every second. Ripple is different from other cryptocurrencies in several ways. The one way it bears similarity with other cryptocurrencies is that there is also a limited number of XRP produced. Presently, 100 billion XRP are in existence, and 60 percent of which is owned by Ripple. XRP is used as a mid-transaction for liquidity. XRP is not used as a currency. Since a large number of XRP is owned by Ripple and not used as a currency, some experts feel that it should be treated as a security. Meanwhile, Garlinghouse felt it should not be treated as security because it serves a utilitarian purpose.
All the XRP tokens are pre-mined. A smart contract holds the control of releasing XRP. The basic use of XRP is to enable the transfer of other assets; however, an increased number of merchants have begun accepting XRP for payments. According to XRP News Today, XRP has emerged to be really effective in bringing down processing times and reduced transaction charges than BTC.
Ripple Currency (XRP) vs. Ripple Protocol
Ripple is a private enterprise software organization and the company happened to be founder and creator of Ripple Protocol. XRP has emerged as the native token of the RCL used for enabling money transfer between varying currencies.
It is worth mentioning that XRP and Ripple cannot be interchanged. XRP is defined as a digital asset; on the other hand, Ripple is a company that established the Ripple Consensus Ledger. XRP and Ripple have got some interdependence on each other. The estimation of Ripple is fundamentally linked to the market price of XRP as Ripple owns various tokens. Earlier, Ripple planned to place 55 billion of XRP tokens into escrow accounts to other network’s participating members so that they do not have to throw all their XRP tokens one day, thus pulling the price down. Apart from that if you want to know more about the current price and future price prediction then you must visit our other pages.
What is Ripple Protocol?
Ripple Protocol can be described as an inter-bank settlement protocol that was established for offering swifter global payments than what conventional systems may offer. It includes different currencies and asset classes, which has made it popular with banks and financial institutions around the world.
Is XRP Centralized?
XRP is not a regular cryptocurrency and has not been supported by a conventional blockchain. It has, therefore, emerged to be heavily centralized and remains in the control of its parent company, namely Ripple Labs. XRP is the currency of the Ripple Network that the app uses. Ripple does not use a blockchain for securing transactions but relies on a method known as HashTree patented by Ripple Labs.
Conclusion
With the surging popularity, experts feel that Ripple is likely to rule the global transaction very soon. There is a big list of banks that are reportedly planning to use Ripple, and most of them are in the testing phase already.
