Ripple Cryptocurrency – A Complete Overview

In today’s world, Cryptocurrency is a widely known idea. It is a rapidly growing concept, which will only become stronger and more relevant in the coming days. And the same concept will be looked at in this article. Learn more: www.crypto-trader.cloud

To put it more descriptively, this article will analyze one of the cryptocurrencies and unravel its workings. The Cryptocurrency which will be discussed here is XRP under the network, Ripple. But before understanding Ripple and all of its aspects, let us understand Cryptocurrency in general, first.  

What is Cryptocurrency? 

It is a kind of currency, as the name would imply. The difference is that it operates digitally or virtually. The first Cryptocurrency was Bitcoin (₿) founded in 2009 by Satoshi Nakamoto, and the latter is many times used synonymously with the former as a consequence. Cryptocurrency uses a decentralized system to function its processes, whether that be as a record for the transactions or to issue new coins. 

Cryptocurrency is not reliant on any authority to further its proceedings. To put it plainly, it is a peer-to-peer system used by anyone to make transactions. Cryptocurrency is also a record or database for all the transactions made. It runs on Blockchain, which gathers information as ‘blocks’. 

Cryptocurrency is produced through a cryptographic process called ‘mining’. Once a person owns cryptocurrency, they don’t have ownership of tangible money, but they can make transactions without a third party’s involvement. 

To store Cryptocurrency, one needs Cryptographic Wallets which are meant to hold the encryption keys to the Cryptocurrency. These wallets can be physical devices or cloud-based software. To further explain, there are two kinds of wallets: Cold (Offline Physical Devices) and Hot (Online Software). However, as these can be hacked into, there are dangers in such handling. 

Despite the flaws, Cryptocurrency is a much-anticipated moment that can change how the world works someday. 

What is Ripple? 

Ripple is a network for exchanging currencies and settling payments that were established in 2012 by Jed McCaleb and Chris Larsen. The cryptocurrency developed by the same is called XRP, which is listed under the top 10 Cryptocurrencies. Ripple was meant to be the successor of SWIFT – a money transfer network. It serves as a trustee or negotiator between two parties. 

As a result, Ripple charges a commission fee of 0.00001 XRP which is the most standard one for every transaction made through their network. Another point to be noted here is that Ripple not only accepts XRP but also other currencies, whether crypto or not. Ripple is majorly used by large financial institutions, including the Bank of America. Check out this App to learn more.

XRP is a ‘Pre-Mined’ Cryptocurrency. A hundred Billion XRP were created in its launch and that same number was maintained simultaneously. They are released publicly into the market. XRP cannot be directly mined in this manner.  

Its Advantages  

• It is affordable. The cost is very low as it is just 0.00001 XRP on every transaction which is a very small amount. 
• It is very fast and convenient. Compared to other networks like Bitcoin, Ripple is very quick and instant in the proceeding of the transaction, usually taking up to five seconds. 
• The system is Highly Diverse. Ripple does not only deal in XRP but also other currencies, which prove to be quite useful for a wide range of customers. 
• It is used by large financial institutions which approve of their validity. 

Its Disadvantages  

• It is a risky investment. As all Cryptocurrencies are said to be volatile, so is XRP. These handlings carry a great deal of risk.
• It is somewhat less decentralized, which goes against the entire idea of Cryptocurrency. When there are certain ‘trusted middlemen’ involved, there is a degree of authority present in that scenario. And the same goes for Ripple. 
• Ripple is considered a bit controversial, owing to its ongoing legal battles.
• The concept of Pre-Mining involved in the functioning of Ripple may endanger the entire cryptocurrency value if the release of XRP is mismanaged.    

Conclusion

As discussed in this article, Ripple and XRP are highly essential components in the Cryptocurrency world. All the information necessary for the understanding of it has already been discussed. Ripple has its cons but there are pros as well. But one may reason through it discreetly, and use the knowledge accordingly, keeping in mind the stakes or the risk that comes along with it.