Although Bitcoin is still an absolute leader in a cryptocurrency field, more and more start-up companies are trying their best to sideline Bitcoin from the leading position. Today, the Ripple protocol, as well as XRP cryptocurrency associated with it, is a very promising project
But we have more questions than answers. What is Ripple, where to buy XRP, and how does the Ripple protocol work in detail? Today, we’re going to find out!
What is Ripple?
Ripple is a payment network based on an open-source protocol. However, Ripple itself isn’t a cryptocurrency. Although, in the media, Ripple is often miscalled so. The crypto associated Ripple is XRP. Therefore, when you buy Ripple, you always get its XRP currency, and not Ripple itself.
How Does Ripple Work?
The Ripple protocol is based on a public database. This database contains a register with all the balances on the network members’ accounts. Everyone can see this register as well as transactions.
Let’s imagine that a user #1 wants to transfer money to a user #2. At the moment, an agreement is reached on the so-called consensus procedure. What does it mean? All network members accepted the changes in the network. Therefore, banks and companies, that are the part of the Ripple network, must confirm all transactions.
What is a Key Goal of Ripple?
Ripple’s key goal is to make more banks join the Ripple network. At the same time, these banks will process their international cash flows using the Ripple protocol. As a result, such a ‘cooperation’ will ensure standardization and not only speed up the international payment system, but also make this process much cheaper.
What is XRP?
XRP is the Ripple protocol’s cryptocurrency which can be used as a trading tool or value store. However, it’s important to note that this currency doesn’t need to be used for transactions. The XRP cryptocurrency uses the Ripple protocol to prevent network attacks.
What Are the Key Pros of Ripple?
The idea of Ripple & XRP is quite clear. At the same time, you’re still looking for the best cryptocurrency to process payments. To do this, it’s necessary to conduct a large and growing number of transactions. This is exactly what sets Ripple & XRP apart from bitcoins.
Due to ever-growing demand, Bitcoin combats a problem of scaling. Today, this leads to a long wait to conduct transactions. Another thing to note is that the Ripple network can guarantee fast transactions, and also provide cooperation with large banks. Among the banks Ripple works with there are:
What Are the Key Cons of Ripple?
Ripple development is closely related to Ripple LLC, and therefore it’s centralized as well. The company itself owns a vast majority of all existing XRP. This fact is perceived by the media and experts as the critical one. Another disadvantage is that Ripple inventors retained 20% of all XRPs available.