Ripple: The Cryptocurrency Disrupting the Financial Industry
Ripple is a popular name in the cryptocurrency market and trade Bitcoin with Bitcoin Prime App. Cryptocurrencies are digital-based blockchain networks and are used as normal currencies. However, there are many of them. As of 2022, there are around 10,000 different cryptocurrencies in existence that are active. Ripple is a type of cryptocurrency that facilitates fast fund transfer domestically and internationally and works for banks.
Cryptocurrencies like bitcoin have a blockchain base that is a distributed ledger and works for its users as a direct fund transfer medium. Ripple is almost similar to it; it also has a distributed blockchain network that is distributed but is used for remittances of fiat currencies. The motive of Ripple’s performance is to make traditional fiat currency transactions faster.
What exactly is Ripple?
Ripple, also known as XRP, is a digital currency that operates on a decentralized, open-source platform called the XRP Ledger. It was created to revolutionize the traditional financial system by enabling fast, low-cost, and secure cross-border transactions.
But that’s not all, Ripple is much more than just a cryptocurrency. It’s a platform that enables real-time, cross-border payments between financial institutions, making it a game-changer in international payments. With its fast transaction speeds and low fees, Ripple has quickly become a popular choice for banks and payment providers looking to streamline their operations.
Role of the Ripple network:
The main role of the Ripple network is to make banking transactions faster and affordable for its users. The company that generated Ripple, is named Ripple Lab. However, Ripple, which is being used by the banks, was not the first product of the company but it has been upgraded with time.
Ripple Lab’s very first product was Ripple Net. It is commonly known as xCurrent which is a decentralized platform. But this decentralized platform is somehow different from ordinary cryptocurrencies. Rather than just a distributed ledger network where users have the same data distribution and access, xCurrent forms a network of unique node lists. It makes transactions through this network faster, more convenient, and affordable. After that, the latest product of Ripple Lab which is Ripple was introduced in 2012.
Advantages of using the Ripple network:
Below highlighted are some of the advantages of using the Ripple network –
1.Faster transactions:
It is a fact that traditional fiat money transactions sometimes really take our nerves. Waiting in a long queue on a busy day for a single transaction is hard. Also, you must wait 2-3 days to be sure whether the transaction is complete if you are sending it across the border.
In contrast, with the help of the Ripple network, banks can complete a transaction within only 4 to 5 seconds. Yes, it is as fast as this. If you remember, the Ripple network is even faster than the bitcoin network. Bitcoin network takes almost 10 minutes for a transaction that is its data verification time.
2.Low transaction fees:
Again, huge transactional charges become unaffordable for many people when considering traditional bank transfers. With Ripple, the transaction charge drops to 0.00001 XRP. This is similar to around 0.0002 US dollars.
3.Versatile network:
The Ripple network not only can transfer fiat currencies but it can also transfer several cryptocurrencies. You can use the network for transferring cryptos in a fast way. Therefore, the network is considered versatile and flexible.
Disadvantages of the Ripple network:
Ripple also has some disadvantages. The vital one lies in its validation process. Other cryptocurrencies have a transparent data validation process. But Ripple is somewhere unable to maintain it.
In the Ripple network, a centralized structure is present which is not prominent though. The validation process of transactional data is done by some of its users that are pre-set as a default setting. Security and transparency are maintained though between them as per the protocol of Ripple but, when it is dependent on a set of people or group, chances for fraud can’t be avoided.
Conclusion
If you are new to the crypto industry, you can start your investment with the most common one, bitcoin, and a reliable platform to start your journey which is also used by many investors in the market.
