The Cryptocurrency Ripple (XRP): The Basics, ToughNickel

Introduction

Maybe you have heard of Bitcoin or the term cryptocurrency. If so, you may also be aware that many of them have experienced rapid price increases te the last few years. One the latest coins to rise to prominence is called Ripple. It is a little different ter the way it is set up compared to most of the other 1300 or so cryptocurrencies that presently exist. Ripple has the unique advantage of being designed to facilitate the transfer of money and other valuable digital commodities across the borders of countries ter a quick and inexpensive manner. Te this article, I introduce Ripple and explain some of its unique properties.

What is Ripple?

Ripple is not a typical cryptocurrency, rather it is more of a digital payment protocol. Ripple operates on an open source and peer-to-peer decentralized verhoging that permits transfer of money ter any form, whether it be another cryptocurrency, fiat currency (US Dollar, Yen, Peso…), commodity, or any other unit of value. Ripple shares a property that it is based on a collective, public database or ledger, which uses a overeenstemming process that permits payments, exchanges, and remittance te a distributed process. The payment network can operate without Ripple Labs company support. Providing pc power to validate the network are companies, internet service providers, and the Massachusetts Institute of Technology.

XPR is the native virtual currency within the Ripple network. The XRP token is represented using six decimal position with the least significant position called a Druppel. There were 100 billion XRP tokens created at the inception of Ripple and presently wields 61percent is held by Ripple Labs. The company has recently placed 55 billion tokens ter an escrow and the project to release one billion tokens each month. The lockup of the XRP tokens is designed to eliminate the concern that Ripple Labs could flood the market at any time. Presently, approximately 36 billion XRP exist within the marketplace.

Movie on Ripple

Who Began Ripple?

Ripple Labs, Inc., the company behind Ripple, wasgoed formerly known spil OpenCoin, Inc. and switched its name to Ripple Labs, Inc. on September 26, 2013. The company wasgoed founded te 2013 and is based San Francisco, California. Brad Garlinghouse is the CEO of the privately held company and often speaks publicly to promote Ripple and the company.

Ripple Labs has bot successful ter establishing partnerships with global banks which included Handelsbank of America Merrill Lynch, Sontander, UniCredit, Standard Chartered, Westpac Banking Corp., and Royal Bankgebouw of Canada. To facilitate further development of the Ripple network and support existing customers, Ripple Labs has offices ter San Francisco, Sydney, London, and Luxemburg

What is the Purpose of Ripple?

Unlike Bitcoin and Ethereum, which function spil digital money, Ripple wasgoed developed to solve the problem of transfer of money inbetween countries. The existing system of international canap transfers takes days for the transfer and costs $50 or more. The use of Ripple permits the transfer to occur te seconds at a fraction of the cost. “XRP is not intended to be money te and of themselves,” remarked the software engineer and cryptocurrency pro, Pierre Richard. “They are more like a bounty card or a token at Dave and Busters to use arcade machines.”

For Ripple to be an effective smeris te the money transfer process it voorwaarde be quick, and it is spil it only takes about Four seconds vanaf transfer. Ethereum transfers take a duo of minutes and Bitcoin takes minutes to hours to make the necessary confirmations. Whereas a traditional international handelsbank transfer money to a different country may take three to five days. So, any of thesis cryptocurrencies is undoubtedly a much quicker way to transfer money.

Spil well spil being swift, the fresh money transfer protocol voorwaarde be inexpensive. Cost vanaf XRP transaction is enormously cheap at only $0.0004. BTC right now is the highest costing several dollars vanaf transaction. The low cost is certainly an advantage for XRP.

Another useful feature of Ripple is the irreversibility of payments and transactions te general, resulting ter the absence of charge backs. Te the Ripple toneel, it is utterly difficult to trace transaction to a specific user. While Ripple’s ledger is publicly distributed, the details of the payments are not public.

What Makes the Price of XRP Skyrocket?

The Ripple token, XPR, has had a crazy rail overheen 2018, commencing out the year at $0.0065 and ending the year at $Two.30, and amazing 35,000 procent rise. The massive price increase has made Ripple the 2nd largest cryptocurrency, 2nd only to Bitcoin.

One of the factors driving the price of Ripple is the rumor that Ripple will soon be on of the cryptocurrencies traded on the largest cryptocurrency exchange ter the United States, Coinbase. Presently, only Bitcoin, Ethereum, and Litecoin are bought and sold on Coinbase. With overheen 13 million users on Coinbase, if Ripple were added to their exchange, it could significantly boost the price of the XRP token.

Meet the Fresh Ripple Billionaires

The skyrocketing price of XRP has created vast wealth for those fortunate enough to own a large number of tokens when they only cost less than a penny each. One such freshly minted billionaire is former CEO Chris Larsen, who now serves spil executive chairman of Ripple. His 17% procent stake ter the company now puts his televisiekanaal worth ter excess of $37 billion. That puts him near the top of the Forbes 400 list of the richest Americans. The current CEO of Ripple, Brad Garlinghouse, possesses a much smaller stake than Larsen but it is still enough to waterput his netwerk worth te the billions.

Disclaimer

Wielding cryptocurrencies is risky business spil the price is very volatile. Don’t invest ter any cryptocurrency without doing your homework and understanding the risks involved. Raadpleging your private financial adviser before investing your hard-earned money.

References

White, Abraham K. Cryptocurrency: Mining, Investing and Trading Bitcoin, Ethereum, Litecoin, Ripple, Dash, Gridcoin, Iota, Digibyte, Dogecoin, Emercoin, Putincoin, Auroracoin and Others. Two nd Edition. 2018.

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