Learn about digital ripple currency
After the emergence of Bitcoin as a vibrant currency, and establishing its position as a digital currency, other cryptocurrencies began to emerge that attempted to remove Bitcoin from its throne. Looking at the market capitalization, Bitcoin and Ethereum are the most prevalent, followed by Ripple in third place. In this article, we will review what distinguishes Ripple and what people are talking about.
What is Ripple?
Ripple is not just a digital currency, it is basically a company that has a system for processing digital payments, and Ripple has another name as well, it is known as XRP, which is similar to Bitcoin, but the Ripple Blockchain system is very different, in addition to that the currency is owned by Ripple While Bitcoin is mined.
Ripple's currency infrastructure is designed to speed up and harmonize transactions with banks, so it is a more popular choice for large financial institutions. The XRB digital currency is often referred to as Ripple, and the company formerly known as Ripple Lap has the largest share in that currency of 60 billion XRB, of which 55 billion is in an escrow account, and they can sell 1 billion XRB per month, although this rarely happens.
Learn about digital ripple currency - digital payment processing system - XRP digital currency - ripple blockchain system
The Ripple Blockchain system provides financial institutions and businesses with many programs that assist them in cross-border payment operations, including the Xcurrent system, a system for processing bank payments, and the X Rapid system, which allows financial institutions to reduce the cost of liquidity by using Ripple as an intermediary Between currencies, the XVIA system, which allows businesses to send payments via Ripple-Net.
Ripple exposes dozens of customers using their blockchain technology system from some small to large banks. For example, American Express announced a partnership with Ripple in 2017, which allowed blockchain payments to be made from businesses in the United States to the United Kingdom, and Ripple is proud of its flexibility and ability to help large financial institutions, and the tremendous speed in completing financial transactions on them, and at the heart of all this stabilizes Its currency known as XRB.
So what is the ripple currency? Is it XRB?
Ripple digital assets can theoretically settle a payment in 4 seconds, process 1500 transactions every second, and although Ripple differs from many other digital currencies in various ways, it is similar to it in the limited number of currencies, as Ripple owns 60% of 100 billion XPR.
XRB is used in the X-Rapid system as a liquidity medium when making cross-border transfers, making Ripple or XRB an unusual cryptocurrency, and Rabel CEO Brad Garlinhouse said: “I don't think about the digital asset market, but I think about Customer Experience ».
Since it is owned by Ripple and is not used as a currency, some call it a financial bond, however, did not show enthusiasm for this, because it would serve a utilitarian goal, and XRB does not mean owning part of Ripple.
A comparison between Ripple and Bitcoin
Cryptocurrencies are usually compared to bitcoin being the most famous and with the largest market share, and we can summarize the differences between ripple and bitcoin as follows:
One of the noticeable complaints from Bitcoin is the length of time it takes for operations, which the Ripple exploits to market itself regarding the speed of conducting operations. However, Ripple avoids that problem by quickly completing operations with an average of four seconds.
Centralization is another difference between Bitcoin and Ripple. While Bitcoin is completely decentralized, as it was established to allow financial operations without the need for a third party such as banks, Ripple is largely centralized, but rather sells its services to banks and financial institutions, and most of its currencies are owned by the company.
Although the two currencies fall under the umbrella of digital currencies, their goals differ radically. While Bitcoin is designed to shape an entirely new financial system, Ripple tries to improve the existing system and develop its capabilities.
Is there mining for ripple?
Mining is one of the prominent differences between Ripple and Bitcoin. Bitcoin is known to be mining in a process that requires expensive technologies and large energy, and while 21 million bitcoins must be mined, a hundred billion XRB does not require mining, and up to this point, about 39 billion XRB is in circulation. Those wishing to purchase it can buy from the cryptocurrency market.
Ripple price fluctuated a lot in its short history, and at the moment of writing the article, the value of the ripple coin is about 48 cents, with a market capitalization of $ 18.8 billion.
The price of the ripple did not exceed one dollar in most of its periods, to the point that any holder of the ripple in 2016 will be surprised if he knows that its value amounted to about half a dollar, by January 2017 the value of the currency was about $ 0.006, and by the end of May the price had reached about $ 0.40 and then fell shortly after But it remained in the range of 10-20 cents for a period of six months, and in December 2017 its price jumped. On December 14, its price exceeded 80 cents, and a week later it broke the dollar barrier for the first time in its history, and in the following week it was worth two dollars, and on January 4, 2018, it was Ripple is on a date with the highest price in its history of $ 3.84 and a market capitalization of $ 148 billion and removed Ethereum from its throne as the second-largest currency with market capital.
That boom coincided with the rise of the Bitcoin by a missile value of $ 20,000, which caused a loud boom in the crypto market, a short-lived boom for either of them. By February, the value of the ripple fell to less than a dollar, and since then it has not exceeded one dollar.
Cryptocurrencies attracted attention after their prices increased unreasonably and then rapidly depreciated (like the Bitcoin currency), prompting the giant bank JPMorgan Chase to issue its cryptocurrency in February 2019. Now many major financial institutions plan to issue their own currencies. But what exactly are these cryptocurrencies?
Cryptocurrencies are common non-governmental digital assets (holdings). The first cryptocurrency is bitcoin, which was proposed in 2008, after which many other cryptocurrencies appeared.
Cryptocurrency is based on the blockchain, which is based on a "distributed record" that is owned by all users on the network and contains all trades made on the network. No individual can change the information on the record (by adding a trade or changing information related to a previous trade) without the consent of all the users involved in that trade.
Thanks to this, blockchain technology is known to be a revolution in the world of protection as it does not rely on a central intermediary body. But if we look closely at it, it only transfers the responsibility to the users. For example, you may not trust that your bank is able to protect your account well, but if you lose your password or your credit card is stolen, you can easily contact the bank and remedy the situation. On the blockchain, stealing or losing your password could mean losing your account forever.
Ripple wallets are similar to Bitcoin wallets, both require a security key for operations, but with Ripple, they must have a minimum portfolio of 20 (XRB). Like other cryptocurrencies, there are different types that include software wallets and portable wallets available for Android and iOS devices, however, the separate wallet is preferred, because it is safe because it keeps information away from the Internet.
One of the famous manufacturers supporting the Ripple wallet is the Ledger, as their portfolio known as the Ledger Nano S supports the Ripple coin.
How to buy a Ripple?
Buying ripples is not as easy as buying bitcoin, cryptocurrency traders such as Bitstamp rarely allow the dollar to be exchanged with XP, while some other trading platforms such as Coinbase and Penance allow the exchange of currencies like bitcoin or ether versus X RB, regardless of the currency you exchange for XRB, you will need an account on the trading platform and Ripple wallet to be able to send coins, and once the steps are completed you can own the currencies in your wallet, given the speed with which operations are performed in Ripple.