With a value increase of 35,000% in 2017 and a market capitalization of more than $ 118 billion, Ripple has become a topic that is much debated among both analysts and investors. But what is Ripple? Is it like other cryptocurrencies? Why has it been burning lately? Keep reading to get answers to these questions.
1. What is Ripple?
Ripple is a payment settlement company founded by Chris Larsen and Jed McCaleb. Their Ripple Transaction (RTXP) protocol contains XRP cryptocurrency. Ripple claims to offer faster, more reliable and affordable transaction solutions for financial institutions. The company has created one hundred billion XRP, and currently holds 61% of its coins. The current plan is to issue a billion coins a month.
2. Differences between Ripple and Bitcoin
Both Bitcoin and Ripple are cryptocurrencies that use blockchain technology. But there is a fundamental difference between them: unlike bitcoins, Ripple cannot be mined. The currency is not configured for mining, and its use is recorded in the Ripple network.
Both Bitcoin and Ripple use validation nodes to verify registries. Bitcoin has about 10,000 trusted nodes, while Ripple has only five. However, the company plans to add another 11 over the next 18 months. Five test nodes are managed by Ripple. XRP has received criticism for the lack of independent validators. The XRP book is available to everyone, so anyone can download it and become a validator. Many companies manage their own nodes in the Ripple network.
3. Reasons for the recent rise in price of Ripple
The recent rise in XRP prices is largely due to the expected use of currency by financial institutions and investment by investors who believe in fraud. Ripple successfully gets banks as customers for their other products. Ripple’s XCurrent companies are preferred by financial institutions because it offers real-time connectivity and quick fixes, thus reducing delays in banking operations. The company plans to introduce a new xRapid product that includes XRP. They see the new product as an opportunity to get banks to use XRP. Investors see the potential of currency as a financial tool used by banks around the world.
Ripple, or rather, XRP – is a growing cryptocurrency. It differs from Bitcoin’s leading digital currency in that its deliveries are controlled by the founding company. Ripple is betting on the banks that accept it in the future. It can be assumed that the recent increase in the value of Ripple will prompt new controversy about its viability as a cryptocurrency asset.