With a 35,000% increase in value in 2017 and a market value of more than $ 118 billion, Ripple has been a hotly debated topic among analysts and investors. But what is Ripple? Like other cryptocurrencies? Why is it burning lately? Keep reading to get answers to these questions.
1. What is a ripple?
Ripple is a payment solutions company founded by Chris Larsen and Jed McCaleb. Their Ripple Operating Protocol (RTXP) cryptocurrency has XRP. Ripple claims to offer faster, more reliable and cost-effective operating solutions for financial institutions. The company generated one hundred billion XRP and now owns 61 percent of the coins. The current plan is to issue one billion coins a month.
2. Differences between Ripple and Bitcoin
Both Bitcoin and Ripple are cryptocurrencies that use blockchain technology. But there is a major difference between the two: unlike Bitcoin, Ripple cannot be removed. The currency is not built as a mined currency and its use is stable in the Ripple network.
Both Bitcoin and Ripple use verification nodes to verify books. Bitcoin has about 10,000 trusted nodes, while Ripple has only five. However, the company plans to add 11 more in the next 18 months. The five verification nodes are operated by Ripple. XRP has been criticized for its lack of independent validators. The XRP ledger is accessible to everyone, so anyone can download and verify it. Many companies manage their nodes in the Ripple network.
3. Reasons for Ripple’s recent price increase
The recent rise in the price of XRP is closely linked to the expected use of foreign exchange by financial institutions and the investment of incredible investors. Ripple has managed to win the bank as a customer for other products. Ripple’s xCurrent is preferred by financial institutions because it offers real-time communication and fast adjustments, thus reducing delays in banking transactions. The company plans to introduce a new product xRapid, which combines XRP. The new product is seen as an opportunity for banks to use XRP. Investors see the potential of the currency as a financial instrument used by world banks.
Ripple, or XRP, is a rising cryptocurrency. This is different from the leading digital currency Bitcoin, because the supply is managed by the founding company. Ripple is banking to adopt banks in the future. It is safe to assume that Ripple’s recent rise will lead to more controversy over viability as a cryptocurrency activity.