Ripple Cryptocurrency-Benefits, Working and Differences

In general Ripple, the meaning is a small wave on the surface of the water. It works something like this, where the ripple is like an authorize gateway. Ripple cryptocurrency use to transfer money Globally.

Ripple cryptocurrency provides the interface to transfer money anywhere in the world, in the form of digital currency. Therefore that is an interface as well as a currency. It introduced by Chris Larsen and Jed McCaleb in 2012 in Australia. Through this, you can transfer money fast and at very low transaction cost. Ripple has its currency also named XRP.

1. About RippleNet

RippleNet provides the network to transfer money internationally in the form of cryptocurrency or XRP. It is also known as the Digital payment protocol. Ripple uses the service of bank and services businesses to transfer money globally.

For Example-

Marlo wants to send money to Jhon who leave in another country. She gives money to his local agent, Smith, the money is sent to Jhon with a password. Jhon required a correct password when receiving money. Smith alert Jhon’s agent Rose with the transaction details. If Jhon goes with him the correct password to Rose, he gives him money. Rose maintains a record sent by Smith. The record maintains by all agents.

This example is simple, Ripple algorithm is more complex than a given example. It is a basic explanation of how ripple network works. In the Ripple network, all agent trusts on each other. Ripple uses gateways to transfer money. Gateway provides the medium to receiving and sending currencies to each other over the Ripple network. Any person can register and open a gateway that authorized and act as a mediator for transferring currencies or money. Ripple maintain liquidity on the network.

2. Ripple Working

Ripple is not working on blockchain. Other cryptocurrencies like Bitcoin and Ethereum are work on Blockchain Technology. Ripple works on consensus peer to peer networks. It does not have blockchain, how will be transactions are verified? For this ripple has its own (RPCA) Ripple protocol consensus algorithm.

‘Consensus’ means every node agree and they have no issue. Ripple is using multiple gateways for a transaction if any $50 transaction happens than the first gateway transaction get delete. Individual different node decide by consensus which transaction is done first, it is decided by the majority of votes.

The transaction confirmation is very fast and it takes roughly 5 seconds. Node selection is done by automatically, there is no central authority to do that. In this, you can not see all transaction details like blockchain. In Ripple ledger maintain by the authorized gateway. It is a cryptocurrency without a blockchain.

3. About XRP

XRP is a digital currency or a token like bitcoin. It provides an interface and gateway to transfer money from one currency to another currency like Dollar to Uro and Vise Versa. Each currency has its gateway like USDsnapswap and CADBluzelle.

XRP is like a Joke in the card that will use any place of the card as it can be converted into any currency at the time of transfer money. Ripple transaction cost very low, it is $0.00001. Currently value to 1 XRP=0.300699 US Dollar at 3:55pm 13/08/2019.

4. XRP Working

Ripple XRP does not work like all cryptocurrencies and not allow any third party to interfere in the transactions. XRP network works on consensus protocol rather than proof-of-work like other cryptocurrencies.

It controls the transaction through its own Ripple Blockchain network that increases the reliability, security, and scalability of the transactions. These transactions are verified through two-step verification and XRP knows all about accounts.

Ripple saves all the details track of IOUs in a given currency for gateway. Any transaction in occurs in Ripple wallets IOU creates the Ripple consensus ledger which is publicly available.

5. Banks which supports RippleNet

In Ripple money transfer and currency exchange are done with the help of Banks. There are some banks name that has an agreement with the Ripple:-

  • Union Bank
  • Yes Bank
  • Uganda
  • Union Bank of Switzerland
  • Axis Bank
  • Akbank
  • Canadian Imperial Bank of Commerce (CIBC)
  • CGI Group
  • Earthport
  • Fidor Bank

6. Benefits of using RippleNet

Ripple cryptocurrency has some benefits like low transaction free, speed of transaction and easy to convert into other commodities. Let’s take a look at these features:-

  • It’s maximum transaction time 5 seconds and the average transaction time is 4 Second.
  • It is very cheap as a comparison to the other cryptocurrency like bitcoins or Ethereum.
  • Its transaction cost is $0.00001 only.
  • Ripple XRP currency can be converted into any valuable currency like gold or Doller at a very low exchange cost.
  • It uses to solve the cross-border related transfer money problems.

7. RippleNet Vs Bitcoin

Blockchain and Cryptocurrencies are an important part of traditional life. Most of the time people are confuse about cryptocurrencies because lots of cryptocurrencies are available in the market. Bitcoin is the most well-known cryptocurrency. However, ripple is increasing popularity nowadays. Let’s see the difference between ripple and bitcoin side by side:-

RippleNet Technology Bitcoin Technology
Its digital currency is XRP. It has digital currency is Bitcoin.
It is used for currency exchange and money transfer. It’s used to paying for services and products.
Money transfer with the help of banks. It’s maintained by a group.
It is created by an official company named Ripple. Bitcoin is created by unknow person Satoshi Nakamoto
It works on Consensus ledger and gateway. It works on Blockchain Technology.
IRipple can’t be mined. Bitcoin can be mined.
The transaction cost is $0.004 per $100.

Total coin supply 100 billion.

The transaction cost is $40 at $100.

Total coin supply 21 million.

8. Buy Ripple

Ripple was the third-largest cryptocurrency according to the market cap is $13.37 billion of August 2019. To buy Ripple cryptocurrency, you’ll need to follow these 3 simple steps:-

  1. Get a Ripple XRP wallet
  2. Find a Ripple Exchange
  3. Withdraw your XRP to your wallet

If you want more information about buying Ripple currency than read our Blog Ripple Cryptocurrency: How & Where to Buy XRP?

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