Ripple (XRP) is one of the oldest technologies in the cryptocurrency ecosystem. In fact, the concepts underlying Ripple are four or five years older than Bitcoin.
Although Ripple is one of the oldest participants in the ecosystem, it is often confused with XRP. We will discuss these concepts in more detail later, but it is important to understand them now. Ripple, which is also its name, is a blockchain that serves as a digital payment network for financial transactions. The platform’s native cryptocurrency is the XRP coin.
Ripple looks at the cryptocurrency ecosystem from a unique perspective. Unlike Bitcoin (BTC), Ethereum (ETH), and most other cryptocurrencies, Ripple focuses on improving the existing and inefficient banking system.
Ripple combines a network of independent banks and payment providers with a standard protocol to transmit and send instant, low-cost, global payments. Ripple differs from other cryptocurrency projects in that it is centralized, not decentralized.
XRP Coin Project
XRP Coin is the native cryptocurrency of XRP Ledger (XRP Ledger). XRP Ledger does not depend on mining or multiple confirmation mechanisms. This makes XRP Ledger transactions faster and more efficient than Bitcoin and most other cryptocurrencies. There are about 1,500 transactions per second on the Ripple network. This compares to 7 Bitcoin transactions per second and 15 Ethereum transactions per second.
Unlike Bitcoin and other cryptocurrencies, XRP does not use Proof of Work (PoW) or Proof of Stake (PoS) to verify transactions. Ripple network participants predominantly use a reputation-based consensus algorithm because they know and trust each other. This consensus mechanism is what sets XRP apart and differentiates it from others.
While traditional international payment methods take one to four business days, it takes less than five seconds with XRP.
Who Are The Founders Of The Ripple Project?
Ryan Fugger first proposed the concept of the Ripple payment platform in 2004. In 2011, it was developed by David Schwartz, Jeb McCaleb, and Arthur Britto.
Inspired by Bitcoin, the three developers observed the inherent waste in mining and set out to create a more sustainable method of transferring value. In June 2012, the trio completed the code development of XRP Ledger and launched it. The company’s original name was NewCoin, but it was later changed to OpenCoin.
OpenCoin’s CEO Chris Larsen, co-founder and CTO Jed, Chief Cryptography Officer Schwartz and Britto as advisors formed the company.
After discussions with potential customers, it was decided to rename the project’s digital asset XRP Coin and the company Ripple Labs.
The XRPL Foundation was established on September 24, 2020 with the aim of accelerating the development and launch of the decentralized XRP ledger. Coil, Ripple and Gatehub have contributed more than $6.5 million to the foundation’s fundraising efforts.
Why Is The Ripple Project Unique?
Ripple is a centralized cryptocurrency, unlike most other cryptocurrencies. Although it is traded through a blockchain system, the company manages all ledgers.
Ripple aims to make large asset and money transfers fast, secure, and cheap through the blockchain.
What exactly is RippleNet?
RippleNet is the name of the network developed by Ripple to send and receive money worldwide. Financial service providers such as Santander, Union Credit, Westpac and Axis Bank, as well as companies involved in payments, benefit from RippleNet technology.
RippleNet realizes combinations that cannot be transferred or traded using traditional financial methods, in the shortest time and at the lowest cost.
What is The Ripple Protocol Consensus Algorithm (RPCA)?
Unlike Bitcoin or Ethereum, Ripple does not have a blockchain. Unlike blockchain systems, Ripple has its own patented technology, the Ripple Protocol Consensus Algorithm (RPCA). This consensus must be agreed to by all network nodes.
What is XRP Ledger?
XRP Ledger is a public blockchain that allows developers to carry out the most complex projects without harming the environment, thanks to its ease of development, low cost, and knowledgeable community.
Coin Statistics for XRP
The maximum number of XRP coins in circulation is 100 billion. However, depending on the network activity, a certain number of XRP coins are burned to cover the transaction fees. Therefore, the maximum amount of XRP coins decreases every day.
In monetary terms, each XRP coin transaction consumes 0.000001 XRP. It would take seventy thousand years to destroy the deflationary XRP coin.
Ripple acquires, triples, custodies and distributes XRP.
In conclusion, Ripple (XRP) is a unique player in the cryptocurrency world that stands out for its centralized approach and aim to improve the traditional banking system. Its native cryptocurrency, XRP coin, offers a faster and more efficient alternative to traditional international payment methods and operates through the RippleNet network. The Ripple Protocol Consensus Algorithm (RPCA) is the patented technology that sets Ripple apart from other cryptocurrencies. XRP Ledger, a public blockchain, offers ease of development and a knowledgeable community for developers. With a maximum circulation of 100 billion XRP coins and a deflationary system, Ripple offers a promising investment opportunity for the future.
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