XRP Cryptocurrency Overview
Ripple is a decentralized cryptocurrency, which at one time was created as an addition to Bitcoin, but not as a direct competing currency. Translated into Russian, the Ripple cryptocurrency means “ripple,” that is, when creating this currency, it was assumed that it would contribute to the development of the ecosystem as a whole. Experts say that Ripple is a peer-to-peer system with a strictly differentiated registry, however, despite the external similarity with Bitcoin, this cryptocurrency has several fundamental differences.
Who created ripple
The history of the Ripple cryptocurrency begins in 2004, at a time when a programmer named Fugger set out to create a new payment system, Ripplepay. The development of this system caused some difficulties at the very start of creation, however, by 2005, most of the work had been completed, and Ripplepay saw its first customers.
In 2005, the system was not the most successful start, so its development continued until 2011. Only 6 years after the launch of the initial version, the developers decided to re-launch the decentralized network. One of its distinguishing features was the fact that mining was almost completely absent in it, that is, it was impossible to mine a coin. Another distinctive feature of the ripple cryptocurrency is that the speed of transactions (that is, the purchase and sale of this currency) is significantly higher than that of the famous Bitcoin.
In starting 2011, the programmer Chris Larsen joins the Fugger team, who will subsequently be given the chair of the director of Ripple Labs. It is worth mentioning separately that it was in 2011 that Fugger and Larsen decided to create their own cryptocurrency, because in 2004 there was not even a discussion of such a concept as cryptographic currency. Initially, Fugger wanted to create a single global system in which free payments could be made. As soon as such an idea was realized, the system developed its own unit of account, which was later called the XRP cryptocurrency.
Of particular note is the fact that a year later, a company called OpenCoins was created on the basis of Ripple Labs, which additionally contributed to the promotion of not only the system on the Internet, but also the spread of XRP cryptocurrency. The developers even decided to create a special application for smartphones, so that it would be easier for users to make transactions with ripple coins.
What are the advantages of cryptocurrency Ripple
The coin has quite a few advantages, but the main ones are the following advantages of cryptocurrency:
- Ripple cryptocurrency has the highest transaction speed. Above it, there is currently no system or other currency that could even compare in terms of performance with Ripple.
- Ripple has a high level of protection not only from hacker attacks, but also from cyber attacks, which initially implies the impossibility or at least low likelihood of hacking or other illegal acquisition of coins.
- Ripple coins are not subject to inflation. This is achieved by the fact that new coins are created in the same volume as old ones go out of circulation.
- The transaction fee is minimal if you compare the transaction fee with other cryptocurrencies.
- Inside the system, you can exchange not only currencies, but also values.
- The ability to edit it or cancel it after a transaction request.
What are the disadvantages of the cryptocurrency Ripple
The main drawback of the system is its monopolization, that is, Ripple Labs owns approximately 65% of all coins present in the system, from which it becomes possible to manipulate currency rates. In addition, the developers of the system have the right to decide how many coins are currently in circulation, how many need to be added and how many to remove.
For this reason, for the owners and users of the coin, one or another decision of the developers can both play into the hands and create small difficulties. The only consolation is that the creators do not have the right to increase the number of coins in circulation to the level of, for example, bitcoin.
Today, Ripple is not just a payment coin, but a specific technology that banks around the world have begun to look at. Among the basic features of cryptocurrency, the following aspects can be mentioned:
- The source code for the Ripple protocol is open, and the transactions are completely anonymous;
- The maximum number of coins is 100 billion, which prevents their depreciation in advance, since the developers do not intend to issue more;
- For a Ripple wallet to be considered active, there must be at least 20 XRP in its account;
- For one transaction, you need to pay 0.00001 XRP, which are immediately debited from the sender’s wallet and burned out;
- The user can divide each coin into several parts, which are called ‘drops’;
- The time during which the user can verify that the transaction was successful reaches a maximum of 4 seconds. For comparison, Bitcoin has several hours, while Ethereum has several minutes;
- Rip cryptocurrency can be converted to other cryptocurrencies, as well as to all currencies of the world.
According to most experts, the Ripple cryptocurrency is the most promising digital currency, with which in the future it will be possible to interact not only with individuals, but also with legal entities.
What is provided with Ripple
When it comes to the security of cryptocurrency, the reasons for its capitalization are implied. The ripple coin, like Ripple Labs, has the advantage that most modern cryptocurrencies lack – it has the trust of banks.
Among the main events that influenced this, there are several:
- The first half of 2016. The company’s project signed a contract with 42 eastern banks, after which it attracted about $ 55 million
- The second half of 2016. Joining Uber and GoDaddy to this company
- The beginning of 2017. The company has a license to conduct cryptocurrency operations, as well as permission to calculate rip coins in banks
In fact, the value of the coins of this cryptocurrency is supported by the fact that most banks took it for a real currency, so users can always exchange it for any other currency. For this reason, a ripple coin is not just a digital currency, but also a practically recognized means of payment, the reliability of which is ensured by its free conversion.
What is the difference between Bitcoin and XRP
There are several basic differences between Bitcoin and Ripple, although they may be similar in appearance. The differences between the given cryptocurrencies include the following points:
- Bitcoin is a decentralized network based on a blockchain, i.e. a database. Bitcoins are stored on certain wallets and do not have a common server. Ripple is not a pure cryptocurrency, as it is a platform that serves transactions and open source protocols. Riple is primarily involved in interbank transactions.
- It is possible to mine, that is, “mine” bitcoins, while such an opportunity with respect to Ripl is almost completely absent.
- It is impossible to cancel a transaction committed with bitcoins, but with Ripple it is quite possible.
- The commission at the time of the transaction with Riple is fixed, while when making a transaction with bitcoins it all depends on the amount.
- At the time of the transaction with bitcoins, you can only use bitcoins, and if the transaction is made using Riple, that is, it is possible to transfer the indicated amount to other currencies.
- Per second, the number of transactions with Ripple reaches 1500, while with Bitcoin – only 4-15.
- With sufficient computer system power, bitcoins can be tampered with, while XRP is completely protected from the risk of tampering.
- With regard to bitcoin, the possibility of interaction with world banks is minimal, while Ripple was purposefully created to work with companies and banks.
- When a transaction is made with bitcoins, the anonymity of the sender is guaranteed. At present, Riple cannot boast of this.
Is it possible to mine Ripple
Despite the fact that direct mining of Ripple is currently not possible, experienced programmers have found an indirect way to get coins of this cryptocurrency.
The user needs to get any of the possible cryptocurrencies, after which he immediately transfers it to Ripple. In order to participate in such mining, you must register on the trading floor, as well as purchase cloud power. Once everything is successful, the service will immediately open access to cryptocurrency mining, and you will immediately be given the opportunity to transfer one cryptocurrency to another. In this case, when mining Ripple, you need to calculate which cryptocurrency is currently the most effective for mining, and then you can safely transform it into Ripple.
What can I buy for Ripple
For Ripple coin, the user can purchase any goods that are on the Internet, whether it be some small household item or a large business transaction.
The ripple coin currency interacts with different platforms, it is enough for the user to make sure that the store in which the purchase is made accepts this cryptocurrency for payment. Using coins allows you to make transactions abroad, and the acquisition of limited goods becomes much easier.
How to buy Ripple
Ripple purchase is carried out using specialized services called exchanges or exchangers.
You can buy a coin in several ways:
On cryptocurrency exchanges. On the exchange there is the opportunity to purchase Ripple cryptocurrency on your exchange wallet. Among the most reliable and popular are the following:
- EXMO exchange, where you can buy Ripple for rubles, dollars, euros or even hryvnias, paying by credit card or other payment systems;
- Binance exchange, where you can exchange not only world currencies, but also bitcoins for Ripple.
Special exchangers. To make the conversion, you must first create a wallet, which will receive coins. Among the exchangers, the most reliable are the following:
First you will need to fill out a registration form with a username and password, after which an email will be received with an email confirming registration. After this operation, it will be possible to transfer one currency to the Ripple cryptocurrency.
How to store coins correctly
In order to create a Ripple wallet, you need to go to the official website and enter your registration data, after which you will be given an individual key, thanks to which you can make transactions.
The official rip wallet allows the user to purchase coins, as well as spend them on one or another purpose. The software wallet in this case ensures the storage of your secret keys on a specific device (computer, tablet) or in memory when there is no pairing with a hardware wallet.
There are several competent ways to store coins on electronic wallets:
- Cold storage, when you see the point in long-term savings of funds “until better times”, and also have your own private key;
- A hardware wallet that allows you to manage your savings and complete transactions from different devices using an individual key;
- An online wallet that another user who is your trustee has access to.
Before choosing an online wallet, be sure to check how secure your connection is. The best choice is to purchase a private key on one specific device, as this will ensure the security of your operations.
Conclusions and forecasts
The latest Ripple news suggests that this cryptocurrency will only strengthen its position in the near future. The level of confidence of banks is gradually growing in relation to the company Ripple Labs.
According to the forecast for 2020, the value of the Ripple coin can reach $ 8-9. Experts in the financial sector are confident that even in the event of force majeure, Ripple users have no reason to worry. Cryptocurrency with a high probability will not only maintain its position, but will also go up rapidly.
If we talk about the forecast for 2025, then it is rather difficult to confirm the stability of the Ripple cryptocurrency for the long term, since different circumstances may come into force over the time given. In the event that the company continues to develop in the vein in which it conducts its business now, then over the next few years, not only will the cryptocurrency rate increase, but its importance in the banking sector will also grow. Thus, we can conclude that Ripple is a reliable means of payment and a profitable currency for investments in the long term.