Ripple is a cryptocurrency platform, where operations on currency exchanges are conducted. It was developed and launched in 2012 by specialists of the company with the same name. Consensus-based registry was implemented. The platform has its own cryptocurrency in XRP type. It’s possible to use it to conduct all operations, which are inherent to standard payment methods, such as cryptocurrencies and fiat money.
The digital coin can also be used for buying fiduciary money or making payments for mobile telephony. The platform has a lot of features, which made it possible for the system to become one of market leaders in terms of capitalization.
Ripple network has a decentralized structure. This means that exchanges between users are conducted directly without an intermediary. The only point is a need to pay a minimal commission. It can be paid with Ripple cryptocurrency. The platform was created to carry out financial operations and it has several features:
- Mining is not available. Before the official launch date approximately 100 billion coins were mined. 35 percent of this amount were released to the market. Developers have the remaining money.
- Blockchain technology is not used. The system has special “gates”. Which allow conducting exchange operations. Several dozens of servers are set up in the company offices. They monitor these “gates”.
- The commission is obligatory. It is equal to 0,00001 XRP. After a finished transaction this amount leaves the system. This makes the system less vulnerable to hackers and spammers. This process also leads to reduction of quantity of coins, and their prices increase.
- Growth in popularity is possible due to partnership with banks and financial organizations, which use the system to conduct payment operations. Every year there are more and more banks from all over the world switch to the Ripple platform. This make the cryptocurrency increase its price and capitalization.
- Ripple is inexpensive in comparison with other cryptocurrency types, but the amount of coins is constantly falling, and this leads to reduction of the price. This moment makes the cryptocurrency a good tool for investments.
The system is used by both legal and private persons. But the growth of popularity is connected to banks, which use the Ripple network on a large scale. Ripple has a high speed of processing transactions and reliability. This factors attract potential investors and ordinary users.
It’s easy to start using the system. Just go to the official website and register there.
The story of creation of the platform
In 2004, Ryan Fugger created a Ripplepay protocol, that has become a prototype of the existing system. His goal was to launch a platform for independent exchanges without intermediaries and give everyone an opportunity to create their own monetary assets.
In the spring of 2011, development of the new system, which would allow conducting transactions without a blockchain and intermediaries, started. Its base is Ripplepay, but many people who were users at first became developers. The new service itself was developed by Jed McCaleb. Arthur Britto and David Schwartz also participated in the process.
In the autumn of 2012, OpenCoin company was launched. It changed its name in 2013. Since 2014 the development of Ripple as a tool for bank transfers has started. After that, growh of cryptocurrency price started, as more and more partners were found. At the moment, Ripple is one of the largest cryptocurrencies in terms of capitalization level.
How Ripple works?
The working process of Ripple is distinct from ordinary systems based on a blockchain. All operations are carried out through special “gates”, which are created artificially. This has made the system work faster. Security level has also become higher. The platform allows exchange various assets in any amounts. The only unchanging thing is the commission, which “burns out” in the process of conducting a transaction. This commission is set as a standard and it stays the same even while operations of high amount.
To carry out an exchange operation users should have a minimum amount of money, which is needed for processing, in their accounts.
Area of use and opportunities of Ripple
The main use of the system is in banking, because money transfers through a platform are very fast and reliably. However, there are many others areas. Among them are:
- investing in the cryptocurrency;
- trading on options and stocks;
- using the system for exchange operations and money transfers.
Ripple can also be used to exchange for other digital currencies or fiat money. Transactions are available through exchangers or specific payment systems.
Wallets for keeping Ripple
You need to have a special wallet in order to keep Ripple. There are several types of them:
- programs, which are used after setting up on a personal computer, a laptop or other electronic devices;
- online wallets;
- wallets in stocks;
- payment wallets, which are often available in XPS.
The choice depends only on a wish of a user. However, the most popular options are programs and online services. The first group is a special application, which is downloaded and set up on a PC. This variant is the most reliable. People often use GateHub service. It allows creating a
wallet after a client provides personal data and keeping money there.
While choosing a method of keeping the cryptocurrency, you should take into account if it is convenient to use. You also have to pay attention for a security level.
How to buy and sell Ripple?
If you need to sell or buy Ripple, then there are several methods how to do it:
- through private persons on the internet;
- through other users on the stock itself;
- on cryptocurrency stocks;
- through online exchangers;
- through XPS.
In any of these cases, the price will be different, because many payment systems have their own commissions. The most convenient option is to acquire the cryptocurrency on a special stock, when a quotation is minimal. In any other case you will have to pay the price set at that moment.
Advantages and disadvantages of the system
Ripple has a number of features that affect its popularity and capitalization growth. The most important advantages are the following:
- fast transactions, which are unavailable for the majority of;
- a unified minimal commission, which doesn’t depend on the amount of operations;
- there are no limits on assets, which are exchanged, it means that all goods and services can be exchanged for each other;
- a reliable security system, which minimizes risks of cyber-attacks;
- lack of inflation, as production of coins was shut down before the cryptocurrency appeared on the stock – big amount of them is not a problem, as some coins burn out during transactions;
- any operation can be cancelled through a support system. It can help if some mistakes were made.
At the same time, Ripple has several disadvantages. These are:
- A high level of monopoly. Ripple Labs company has 65 percent of coins, so it can affect an exchange rate.
- High centralization. The system itself is decentralized, but developers can change the amount of a turnover using their assets.
- Mining is not available, so ordinary people don’t have an opportunity to get the cryptocurrency without paying for it. The only option is buying it..
These downsides don’t let Ripple grow very fast in comparison with other cryptocurrencies. But there is growth, because some coins burn out. The less money is in a turnover, the bigger demand is. That’s why investing in Ripple and making profit is still a good idea.
The Ripple system is considered an unusual platform. Operations with many assets, including ordinary currencies, are available because of it. Due to a huge number of advantages, the system is very popular in banking. As the amount of coins is limited, their prices constantly go up, and that makes investing in Ripple quite profitable.
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