With a 35,000% increase in value in 2013 and a market cap of more than ৮ 117 billion, Ripple has become a hot topic among analysts and investors. However, what is a ripple? Is it like other cryptocurrencies? Why is it on fire lately? Keep reading to get the answer to this question.
1. What is a ripple?
Ripple is a paid solutions company, founded by Chris Larsen and Jade McCallub. Their Ripple Transaction Protocol (RTXP) includes cryptocurrency XRP. Ripple claims to provide fast, reliable and affordable transaction solutions for financial institutions. The company has generated one hundred billion XRP and currently holds 611% of the currency. The current plan is to issue one billion coins per month
2. The difference between Ripple and Bitcoin
Bitcoin and Ripple are both cryptocurrencies that use blockchain technology. However, there is a fundamental difference between the two: unlike Bitcoin, the ripple cannot be mined. The currency is not set up as a mineral currency and its uses are fixed on the Ripple Network.
Both Bitcoin and Ripple use validation nodes to validate leaders. Bitcoin has about 10,000 trusted nodes, but Ripple has only five. But the company plans to add 11 more in the next 18 months. The five validation nodes are controlled by ripple. XRP has received criticism for the absence of individually credible legitimacy. The XRP laser is available to everyone, so anyone can download and validate it. Many companies run their own nodes in the Ripple network.
3. Reasons for the recent price increase of Ripple
The recent rise in the XRP has a lot to do with the expected use of currency by financial institutions and confidence-hype-investor investments. Ripple has succeeded in acquiring the bank as a customer of its other products. Ripple is preferred by exclusive financial firms because it provides real-time communication and quick correction, resulting in a reduction in bank transaction delays. The company plans to launch a new product, XRPID, which includes XRP. They see the new product as an opportunity for banks to use XRP. Investors see the potential of money as a financial vehicle used by banks around the world.
Ripple, or more precisely, XRP is a growing cryptocurrency. It differs from the leading digital currency Bitcoin because its supply is regulated by the founding company. Ripple is banking on banks accepting it in the future. One might assume that the recent rise in the value of Ripple will encourage further debate about its effectiveness as a cryptocurrency asset.