Most Altcoins differ from BitCoin with only a few nuances. For example, some are more anonymous and secure, and others work with smart contracts.
However, some systems have gone much further. A prime example is the Ripple cryptocurrency (XRP). One of the most promising cryptocurrencies Ripple is currently on the third place for all financial indicators after the most popular cryptocurrencies in the world – BitCoin and Ethereum. The Ripple capitalization is two billion US dollars. This proves that Ripple cryptocurrency is trusted by users of the network, they consider it promising and reliable.
Ripple has much in common with BitCoin in its concept: complete decentralization, a publicly accessible register of transactions, and the widespread use of cryptography.
However, even these two seemingly related projects fundamentally differ in the way operations are conducted, and even their purpose is radically different.
History of Ripple creation?
The XRP cryptocurrency origins date back to 2004 since the outstanding Canadian programmer Ryan Fugger started to work on a fundamentally new Ripplepay payment system.
Notably, the Ripple story is a series of continuous upward-moving! The startup was very successful, and it had already started in masses in 2005.
At that time, it was a peer-to-peer network: p2p. The distinctive feature of Ripplepay was the fact that users were on equal terms, and all the monetary transactions were based on mutual trust. The spread on a mass scale didn’t happen in the absence of sponsors, but the existence continued.
Sometime later, Ryan gets acquainted and begins to work closely with the developer of file-sharing eDonkey – Jed McCaleb.
Together, they start a complete upgrade of the Ripplepay (2011) system, taking over the concept of decentralization from Bitcoin.
It was decided to completely abandon the Ripple mining. About a year later (in 2012) they take Chris Larsen to their team and together create the subsidiary company OpenCoins, which was aimed at improving the payment functionality.
In 2013, the company was renamed to Ripple Labs. Most members of the old team leave the project, and it now was headed by Larsen, and his company focuses mainly on working with large financial institutions.
The first significant success in this direction was cooperation with the German Fidor Bank in 2014. After that, Ripple was noticed by other major players of the financial world, in particular, Western Union.
In 2016, the company managed to attract investments of $55 million. From the leading banks with Ripple start joint activities:
- National Australia Bank;
- Shanghai Huarui Bank;
- BMO Financial Group;
- Standard Chartered and others.
In early 2017, Ripple signed an agreement with the National Bank of Abu Dhabi, which operates in 17 countries. Today, the list of financial institutions, which Ripple cooperates with, is extensive.
Features of Ripple Cryptocurrency
As a new cryptocurrency Ripple has some specific characteristics:
- It has free and accessible program codes, which is the key to the successful development of the system;
- The inner coin Ripple is called ” XRP, ” and it accepts any valuable equivalent;
- The system has additional security options and is better protected against hacking than Bitcoin;
- There are a total of 100 billion coins in the Ripple system;
- Any user can create their currency exchange, services, and goods. Since all transactions on Ripple are built on a contractual basis there is no need for arbitration;
- The advantage of Ripple is two-way transactions, where each transaction can be reversed in the opposite direction;
- There are no commissions for exchanging for participants of transactions in Ripple;
- Full transaction history is saved on wallets;
- There is no direct mining. You can swap Ripple, or you can get it as a reward for participation in the calculation process, which used for science and medicine;
- It is acceptable to combine participants into pools and farms.
How does Ripple work?
At its core, Ripple is the exchange point on a contractual basis without commissions and markups. It is an ideal solution for those ones, who need to transfer money from point A to point B but don’t want to pay additionaly for delivery.
The primary orientation of the Ripple project is not the private users but the banking sector. Massive investment in the banking sector is providing benefits, and more and more companies are implementing new technology into their payment system. Keeping the trend, Ripple can kill the Swift monopoly in the market for the international Bank payments, offering its decentralized counterpart.
It was invested more than $100 million in the project in 2016, and in the same year, Ripple entered the market in the Asian region. Currently, 42 Asian banks have integrated Ripple for internal and external payments.
In 2017, the relations with the NBAD Bank were established. Santander Bank was the first in the UK to use Ripple for international transfers.
Is Ripple Mining Possible?
Since Ripple doesn’t use the blockchain technology, it cannot be called a real Altcoin (alternative to Bitcoin). That is, Ripple can’t be obtained through mining, like other Altcoins.
You should understand that this network does not provide an opportunity to receive an award as in the case of the classic approach to mining in Bitcoin and other cryptocurrencies. Independent servers control the system.
The entire volume of coins was released during the launch of the project. Of the total amount of 100 billion coins, about one-third part was distributed among the participants of the system.
There’s not a lot of information about how to get the Ripple, but there is a way. However, it cannot be called mining, because there is neither the usual blockchain nor the blocks that are needed to be mined.
Where to Store Ripple?
To hold the auction, accumulate savings and do not fear for breaking of a briefcase, you need to get a Ripple wallet (XRP), and it can be done in 4 ways:
- Directly on exchanges, if this cryptocurrency is included in the listing. On the platform, you will be able to buy, swap, trade and store the coin.
- In the online version but only for those, who have the small amounts;
- Desktop open source local Rippex and Toust Wallet;
- Ledger hardware wallets. Today in the line of this manufacturer, two purses support XRP – Nano S and Blue. In addition to Ripple, they can store Bitcoin, Ethereum, Litecoin, Zcash and also several popular cryptocurrencies.
The Benefits Of Ripple
Ripple system has its advantages:
- there is no physical movement of funds;
- there is no risk of losing or stealing of money;
- complete anonymity, which means: you do not need to fill in the declaration.
For Ripple you can take a variety of products as a valuable cash equivalent.
Interesting is the fact that all the operations of exchange, purchase or sale of cryptocurrency are recorded on the wallets of participants without charging a fee. Each registered user has access to the recorded information.
Let’s Sum Up, What Was Said About Ripple
This electronic coin belongs to the group of Altcoins, and its versatility efficiently combines the best qualities of popular cryptocurrencies:
- all participants are guaranteed anonymity and protection of funds in the accounts;
- decentralization – tax services and other organizations are unable to influence the processes, taking place on the exchange;
It was created based on Bitcoin and passed a long way of transformations; one of the stages became working off of technology of blockchain and payment gateways.The primary vector of development, which was laid by the creators of Ripple, is an orientation on the banking sector, and the improvement of the non-cash payment system.
The experts note that this cryptocurrency has long-term prospects for development, it compares favorably with analogs that make a severe competition for it.
Given the active development of the project and the considerable interest from reputable companies, investments in Ripple have great potential.
At least, the new cryptocurrency has a happy future in the context of international payments, where Ripple feels the most comfortable.