Ripple has been one of the most talked-about topics in the cryptocurrency space in the last few weeks. The market cap and its price had undergone a significant increase. It briefly surged over Ethereum to occupy the second highest spot in terms of market capitalization for 24 hours. Although it is back to the third position, its name is gaining more and more popularity convincing investors to put their money on the so-called centralized cryptocurrency.
What is Ripple?
Ripple was officially launched in the year 2012 by Arthur Britto, David Schwartz, and Ryan Fugger. Currently, it operates under the leadership of Brad Garlinghouse.
Being the world’s third-largest cryptocurrency after Bitcoin and Ethereum, it has a market capitalization of 20$ Billion and currently trades at $0.54 as of 4th October 2018. It is denoted by XRP.
Ripple helps in transferring money globally using the power of blockchain. It works on the basis of Real-Time Gross Settlements (RTGS). The network was created by Ripple labs with transactions being processed through the XRP Ledger.
It operates as an open source platform, in a peer-to-peer decentralized platform. It helps in the prevention of double spending and it improves the integrity between customers who are involved in it.
Ripple was developed by way of an open source platform, which helps in its network distribution by having a set of validators.
As a Digital Asset
Ripple is considered to be a digital asset for payment transactions. XRP mainly helps enterprises and banks for payment transactions at a faster rate with minimal transaction cost. The transactions are settled within 4 seconds between parties.
Ripple transactions help in eliminating third-party interference during transactions. The fee to conduct transactions on this network is also minimal with a standard transaction fee set at 0.000001 XRP, as compared to large fees charged by banks.
Unlike some cryptocurrencies, mining of Ripple tokens is not possible since the transactions are powered through a centralized blockchain to make it more reliable and fast. There were 100 billion units created in Ripple’s inception and the maximum supply is limited according to protocol rules.
Ripple As an Investment Tool
The methodology and working of ripple provides an edge over other coins in the crypto market.
Ripple uses a type of centralized Blockchain. Unlike other cryptocurrencies, one cannot mine and keep XRP. One will have to buy their tokens from the Ripple platform and then store it within an XRP wallet.
In consideration of digital transactions happening all over the world, the importance of the blockchain network may see rapid growth in future years.
The management has tied up with various banks and enterprises all over the world. There are plans of entering various countries such as India, after the ban on Crypto gets lifted.
The Ripple price movement over the years has ranged from 0.12$ to 3.12$ and is expected to grow exponentially in the future, despite its current fall. This does make it a wise decision to buy and invest in some XRP.
Read More: Where will Ripple be in 2019?
Image Courtesy: BeatingBetting.co.uk on Flickr
Have you invested in Ripple yet, or do you plan to? Share your thoughts in the comments section below.