The cryptocurrency that maintains a smooth flow of money
Ripple is a digital currency created with the aim of establishing a distributed, open-source payment method. The decentralized transaction network within which Ripple operates is also called Ripple. It relieves people of the hassles of using other modes of online payments such as credit cards, debit cards, and PayPal. The Ripple protocol is designed in such a way that it allows the developer to make changes in available features and plan for future developments. Ripple keeps money flowing freely where it is aptly named given its role! The decentralized digital currency approach of Bitcoin got a newer meaning with the invention of Ripple. It connects different payment systems together.
A company called OpenCoin developed Ripple as a new form of cryptocurrency. CEO Chris Laren and CTO J. McCaleb used their previous experiences in the field of Bitcoin to invent this currency. Rippled has recently opened its office in Sydney, Australia and also in London, UK and in Luxemburg.
How does Ripple differ from Bitcoin?
Ripple has many similarities and also some dissimilarities with Bitcoin. As for the similarities, Ripple also uses a hashing algorithm for its currency named XRP. There is a limitation on the number of Ripples that can be mined. Just like in Bitcoin, the transaction takes place in a peer-to-peer form without the involvement of a third party. In both cases, there are security measures to prevent counterfeiting.
Now let us discuss the differences. Bitcoin and Ripple use different methods for reaching network consensus. In the case of Bitcoin, it is Proof-of-Work (mining) while an iterative consensus process is used for Ripple.
Advantages of using Ripple
• Its mining uses a very energy-efficient method
• Transactions take place very fast, within a matter of seconds
• One can exchange XRP for US dollars without the intervention of a third party
• Ripple charges extremely low fees for transactions
• Micro-payments are made possible by Ripple
• Ripple is equally accessible to everyone, just need to make an account
• There is no question of the closing of funds unlike with banks
• No chance of frozen funds.
• No chance of charge-backs
• People using ripple do not need to fear about inflation, XRP has a fixed price
Wallet diversification with Ripple
Ripple allows you to hold as many currencies as you like without the need to pay any extra fees for the purpose. In contrast, banks convert all your money to your native currency without even asking for your permission and even charge extra for this. So, leveraging your funds for business trips and playing Forex games is easier with Ripple!
Inter-currency transactions through Ripple
There are many banks and online platforms that allow the transaction of money from one currency to another. However, they charge an extra fee for this service and certain risks are also incurred. Ripple has no such risks involved for cross-currency transactions and also does not charge you fees for the service. The sender can use any currency such as the Dollar, Yen, and Euro irrespective of whether the receiver uses Pounds, Rupees or Yuan.
How does Ripple maintain your privacy?
Ripple is a safe and secure method for transactions that keeps your private information hidden from the clients or merchants. The money is sent and received directly. Just like playing in cash, account details and other information is never shared.
Ripple’s involvement in other projects
Ripple Labs have been involved in several development projects that are related to their protocol. One such example was building an iOS client app in collaboration with Apple back in 2014. Some banks have also entered into ties with Ripple, such as the Fidor Bank in Germany. Others have used Ripple as a means of facilitating their transactions. The Royal Bank of Canada, the Royal Bank of Scotland, and the Standard Chartered banks have also gone into ties with Ripple.