Analysts and investors have been discussing Ripple for years. It has seen a 35,000% increase in its value and a market capitalization of more than $118 billion. What is Ripple, you ask? Are Ripple and other cryptocurrencies the same? It has been so hot lately. These are the questions you will find answers to.
1. What is Ripple?
Ripple, a payment solution company, was founded by Chris Larsen & Jed McCaleb. The Ripple Transaction Protocol, (RTXP), contains the cryptocurrency XRP. Ripple claims it offers faster, more reliable, and cheaper transaction solutions to financial institutions. Ripple has created 100 billion XRPs and currently holds 61%. The company plans to release one billion coins each month.
2. Differences between Ripple & Bitcoin
Both Ripple and Bitcoin are cryptocurrencies that use blockchain technology. Ripple, unlike Bitcoin, cannot be mined. Ripple is the only currency that can be mined.
Both Ripple and Bitcoin use validating nodes to validate ledgers. Ripple only has five trusted nodes while Bitcoin has more than 10,000. The company plans to add 11 new nodes over the next 18 months. Ripple controls the five validating nodes. XRP has been criticized for not having independent trusted validators. Anyone can download the XRP Ledger and become a validator. Many companies have their own Ripple nodes.
3. Reasons for the recent price hike of Ripple
The recent price rise of XRP is a result of the currency’s expected usage by financial institutions and investment from believe-the-hype traders. Ripple has had success in gaining customers from banks for its other products. Financial institutions prefer Ripple’s xCurrent because it allows for real-time communication, quick corrections, and reduces delays in bank transactions. The company will soon introduce a new product called xRapid that uses XRP. The company sees the new product as an opportunity for banks to adopt XRP. The currency is viewed by investors as a potential financial vehicle that banks around the world can use.
Ripple or, more specifically, XRP is a growing cryptocurrency. Because its supply is controlled and controlled by the founder company, it’s quite different from Bitcoin, the most popular digital currency. Ripple hopes banks will adopt it in the near future. It is possible that Ripple’s recent rise in value will lead to more discussions about its viability and future as a cryptocurrency asset.
