Ripple is a payment protocol that was first developed in 2004. Ripple offers an open source, peer-to-peer system of currency exchange to enable fast and cost-effective transactions between two parties.
The idea behind the project was to provide a more efficient way for banks to send money across borders by making cross border payments faster and cheaper than ever before.The Ripple Protocol can be used with any other crypto currencies such as Bitcoin or Ethereum, but it doesn’t require these currencies in order to work.
In fact, there are many people who use XRP tokens (which is the native cryptocurrency on the Ripple network) as an investment because they see its value going up over time!
The transactions on the Ripple network are much cheaper than if you were to use a bank. The traditional cross-border payments can take up to a few days, but with Ripple it is just seconds!
This blog post will help you understand what makes this project so unique and why people find it so attractive as an investment opportunity. It then goes over some of the benefits that these faster transfer times have for banks when they make international transfers.
Let’s get started by explaining how blockchain technology works in general terms.
The idea behind blockchain is that every transaction on the network gets written to a shared ledger. This means two things:
– It’s impossible for anyone in the system to make changes without being caught because they would have to change everyone else’s copies of the data at the same time.
– All transactions are public, meaning it can’t be hidden! So any person who has permission within one organization (say your bank) could find out about all other transactions happening with their company and potentially those people outside of their company too! The only exception is if you use something called stealth addresses which we will go over later.
This leads us into how Ripple works specifically…Ripple uses what they call “a consensus process” as opposed to Bitcoin’s mining process.
The consensus process is an algorithm that lets the network agree on a transaction through a vote of nodes in the system (each node has one say). This voting system means it can take some time for transactions to go into effect, but they are all publicly viewable and transparent!
There are many differences between Ripple and other cryptocurrencies like Bitcoin- let’s talk about how Ripple differs from others by using what we’ve learned so far:
Unlike most cryptos, which rely heavily on decentralization/mining as their “proof” method, Ripple relies mainly on its unique consensus protocol.
This makes it much faster than Bitcoin or Ethereum when completing transactions – with speeds clocking in at around four seconds!
Ripple is a currency in the same way that Ethereum, Bitcoin and Litecoin are. It was created to be used with transactions; it’s not just an investment vehicle for speculators.
The creators of Ripple wanted to avoid “mining” because they believed too much power lay in the hands of those who mined crypto coins instead of being spread out among everyone else. Unlike other cryptos like bitcoin or ethereum which use public ledgers (blockchains), ripple uses a private ledger system, meaning only banks can participate (but anyone will benefit).
This isn’t necessarily good or bad – but it does mean you need more trust placed on centralized authorities than would otherwise be necessary if using a decentralized blockchain.
The key takeaway is that Ripple was designed to be used as a currency and not an investment vehicle.
You should definitely Buy XRP as it holds huge potential for the future. Ripple is a real-time, low cost international payments system. Ripple provides global financial settlement solutions to enable the world’s flow of money and liquidity in any form to be traded as liquidly as information.
Our technology enables customers to conduct live cross border transactions between banks on reliable, scalable enterprise software that integrates advanced messaging, security and compliance capabilities into one package.
Ripple “enables” funds sent around the world using its digital currency XRP (ripples). The company claims this process reduces costs for sending money by 75%.
They’re not just focused on making XRP crypto coin more valuable – they also want it to become an accepted means of payment used every day! Blockchain Capital also recently invested $25 million dollars with them.