What is Ripple?
Ripple is one cryptocurrency that has faced more than the normal share of threats and attacks from the non-believers of cryptocurrency.
Since 2009 there has been a great flood in the market, with various cryptocurrencies trying to climb up the ladder to defeat the all time reigning champion, the Bitcoin created by Satoshi Nakamoto. The markets have been flocked with investors from throughout the world to get a piece of this freshly baked economic delicacy, and now they have so many options to choose from:
Litecoin, Dash, Namecoin, Ethereon classic, Monero, Swiftcoin, Zcash etc. In this article we are going to shed light on the second most popular cryptocurrency which is predicted to take the market by an explosion, Ripple created by Ripple Labs Inc., a US based technology company which designed it for peer to peer debt transfer.
What’s Unique About Ripple?
Ripple utilizes the concept of consensus ledger. All the transactions are stored in this ledger and put up on a server to compare with others having the ledger.
This server can be managed by anyone – be it a bank or a market maker. To put it simply, it basically works on the principle of Blockchain. Ripple is quite stable and is centralized as it does not incorporate the concept of “Mining” as followed by Bitcoin.
It follows a single blockchain with distributed ledgers, hence making it faster and more reliable. Many argue whether it is truly centralised or not. To clear this, Ripple holds most of the coins (about 55 billion) and release some (1 billion) every month to control the distribution, but when it comes to the distribution of nodes (ledgers), they are decentralized like Bitcoin – but with a catch.
Bitcoin enables anyone to become a node, whereas Ripple keeps a track of who they make a node and select the validators on their own to enable safety and reliability.
How Is Ripple Better than Others?
Bitcoin is still not feasible for day to day transaction that a person makes, be it dining out, buying basic commodities, buying tickets etc. because it has an extremely high value i.e $7295 a unit, whereas 1 XRP (that is the unit of a ripple currency) is $0.447059 which is more feasible when it comes to day to day transactions.
Another reason why any other crypto falls behind XRP is that they are extremely slow to transact with. A Bitcoin transaction takes an average of 9.25 minutes, Litecoin can take 2.46 minutes or so, Dash takes up to 2.5 minutes – whereas XRP does the same in 3.5 seconds because of the centralized system.
In cryptos like Bitcoin, Litecoin and others, the average transaction cost is very high, approximtely $20, but in the case of Ripple it is negligible, at about $0.00001.
Another notable feature of XRP, whenever a transaction takes place, a very small part of the total XRP is destroyed.
With over 1500+ transactions taking place in XRP every minute and about 4 XRP being burnt every minute, the cost of XRP will supposedly rise when following the pattern roughly neglecting other factors.