There is a new name in the cryptocurrency arena that is being pitted against Bitcoin. Ripple ersten Eindruck is specifically designed as a currency exchange, payment settlement, and money transfer systems fit for payment networks and financial institutions like banks.
The purpose was to create a technology that is far better, secure, and robust alterantive to traditional transfer systems in banks for transfer of assets such as gold and money. Transfers or payment processes using Ripple are made real-time, secure, and transparent than the conventional SWIFT payment system.
Blockchain technology powers up Bitcoin whileRipple uses a distributed ledger with the integration of servers that validate individual transactions. The main idea of Ripple’s conception was to design a system that enables real-time and direct transfers of assets
Bitcoin runs on a decentralized network that has no middleman or third party like governments or banks. It was created by a person or a team under the alias Satoshi Nakamoto.
Ripple is created the by the Ripple Company which was established in 2012. The company also has offices in the UK, Luxembourg, and Australia.
Technologies Behind The Innovation
Bitcoin uses proof-of-work or mining while Ripple makes use of a consensus ledger, validating servers, and XRP toxens. A new ledger is created instantly ever second with Ripple while Bitcoins would take several minutes to create a block.
Bitcoin miners get rewarded with Bitcoins each time a mathematical algorithm is solved and a block is created. Ripple is not meant to be miined. In fact, 100 billion of XRP toxens have already been pre-mined and around 38 billion are sporadically available in the market. Other XRP toxens are still in XRP labs and designed to be released periodically.
Bitcoin has a total limited supply of only 21 million to protect the blockchain system. Ripple owns 60% of the total XRP tokens while Bitcoins are just spread out and waiting to be mined globally.
The speed of each transaction confirmation takes only 5 seconds on average for Ripple while Bitcoin would normally take 8 to 10 minutes.
Bitcoin’s purpose is solely as digital cash for payment purposes or for financial transactions that involve money. Ripple, on the other hand, is designed for transfer of assets apart from being a digital currency. You can sell or trade XRP for USD or any other currency without any third party with the Ripple network because it’s decentralized currency exchange. Bitcoin though would need a central point in these trades or exchanges even if it operates in a widely decentralized network.
Ripple’s XRP Toxens
XRP is the digital cash used in within the Ripple network to facilitate payment transfers between and among different currencies. Bank transfers with settlement systems often use USD as the default currency when converting between currencies which would take time and also comes with currency exchange costs.
Whn your convert your transfer into XRP initially rather than USD, then you get to skip the exchange fees and the processing of payments is now reduced to just a few seconds rather than a few days. There are now a number of major bank such as the Commonwealth Bank of Australia, Santander, and Fidor Bank together with 61 other Japanese banks that are currently having ongoing trials of applications that make use of the Ripple payment system.
Bitcoin which only has a limited and scarce supply of coins or capped at 21 million is a far cry from that of Ripple which initially created 100 billion XRP toxens upon inception. Ripple has now an add-on feature, the smart contract system or escrow. In this system, the Ripple Network releases a total of 1 billion of that to help fund the daily business operations, sell to investors, and also to provide incentives to loyal clients. The remainder or unused token are placed back on escrow.
On the other hand, Bitcoin rewards miners that provide computing power to solve and validate each transaction to successfully add blocks into the blockchain network. XRP is both a store of value or a currency and aso a fuel for many transfer transactiuons such as in the purchase of basic goods and services plus other assets like oil and gold.
Ripple Investments – Should You Go for It?
There have been lots of nagging questions as to whether Ripple has good investment value just like Bitcoin or Ethereum. Ripple is now slowly yet steadily gaining traction in the cryptocurrency world and even taking the mainstream level. Some organizations are now using it which shows that it has definitely gained a lot of momentum in such a short span of time.
The XRP toxen has tremendously increased in value and has even outperformed BTC as well as other cryptocurrencies. It started in 2017 at an initial market value of $0.006 and then peaked to around £3.87 but crashed down to $1 in XRP.
So, if you are day trader and looking to buy and sell to gain quick profit then Ripple is a good investment. It’s highly volatile just like Bitcoin and Ethereum but it has definitely taken over the second ranks when it comes to the most popular and biggest cryptocurrencies in the playing field. There was a major uptake as it has toppled down Ethereum and gained dominance over the market.
Investing in Ripple is a good idea if you know how the market moves and are flexible enough when it comes to your investment profile. If your appetite for risk is good then go for it. Just like any other digital cash, the prices can spike and go erratic so expect sharp upward and downward movements in the price chart. Timing is everything when it comes to trading XRP toxens. Precision will get you on the right track when it is time to buy, sell, and hold. Ripple and Bitcoin are both prime movers and key players in the cryptocurrency world today and it’s shaking and disrupting boundaries. Should you jump in and join the force or be intimidated by the crypto jargons? The decision would be entirely up to you.