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Ripple is a peer-to-peer powered platform built on an open-source protocol that allows fast, direct and secure transactions on the web. It provides a system of exchange and money transfer system.
DID YOU KNOW: In 2020, one-third of the world’s 100 largest banks (in terms of assets) have tested or are already using Ripple’s cross-border payment technology.
Conceived in 2011 by Jed McCaleb, Ripple was designed to eliminate reliance on centralized exchanges, use less electric power, and perform transactions quicker than Bitcoin. The protocol was then developed by Ripple Labs and released in 2012.
The Ripple platform runs its own cryptocurrency, XRP. A ripple coin consists of a million units called drops.
While XRP can be bought, it’s not intended for consumer use. Instead, Ripple’s focus is on improving real-time payment settlements and providing liquidity for financial institutions to enable cross border transfers.
As opposed to most blockchain networks using mining for security, Ripple is secured by a consensus from the participating servers.
To read more about mining, click here.
XRP has been supported on Coinhako since 2018, and our users can buy XRP with fiat currencies available in their account or with other cryptocurrencies that are supported in their country of residence.
In 2014, several banks and payment processors signed on to utilize Ripple in a testing capacity. Due to the trust of banks and payment networks in the Network, many established financial institutions have adopted the use of Ripple every year. The firm claimed to service over 300 financial services customers in 2019, reaching a valuation of $10 billion USD.
The power behind Ripple is that it can transact anything, even multiple currencies at one time. It also supports fiat currencies, other cryptocurrencies and even frequent flyer miles or gold.
All 100 billion of XRP’s total token supply were put into circulation right from the launch of the protocol – this means that there should not be any further emissions of XRP going forward. Instead, the Ripple project does have an in-built “token burn” mechanism, which will gradually reduce the total supply of XRPs, and is widely believed to be a deflationary countermeasure for the value of tokens.
With the interest in blockchain technology growing every year, XRP will definitely have an impact on the way the market is shaped for many years to come!
You can view Ripple's Whitepaper to learn more about the digital currency
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All opinions expressed here by Coinhako.com are intended for educational purposes, taken from the research and experiences of the writers of the platform, and should not be taken as investment or financial advice.