With an increase of 35,000% in 2017 and a market capitalization of more than $ 118 billion, Ripple has become a hotly debated topic among analysts and investors. But, what is Ripple? Is it like other cryptocurrencies? Why has it been on fire lately? Keep reading for answers to these questions.
1. What is Ripple?
Ripple is a payment solutions company founded by Chris Larsen and Jed McCaleb. Their Ripple Transaction Protocol (RTXP) contains XRP cryptocurrency. Ripple says it provides faster, more reliable and cheaper transaction solutions for financial institutions. The company has generated 100 billion XRPs and now owns 61% of its coins. The current plan is to release billions of coins every month.
2. Differences between Ripple and Bitcoin
Both Bitcoin and Ripple are blockchain currencies that use blockchain technology. But, there is a key difference between the two: Unlike Bitcoin, Ripple cannot be undermined. Currency is not configured as a mining currency, and its use is consolidated in the Ripple network.
Both Bitcoin and Ripple use validation nodes to validate books. Bitcoin has about 10,000 trusted nodes, and Ripple has only five. However, the company expects to add 11 more in the next 18 months. The five validation nodes are controlled by Ripple. XRP has been criticized for not having a reliable validator independently. XRP Ledger is available for everyone, so anyone can download and validate it. Many companies run their nodes on the Ripple network.
3. Reasons for Ripple’s recent price hike
The recent rise in XRP prices has a lot to do with the expected use of currency financial institutions and the investment of reputable investors. Ripple has been successful in earning the bank as a customer for the rest of its products. Financial institutions have preferred Ripple’s xCurrent because it provides real-time communication and quick fixes, thus reducing delays in banking transactions. The company wants to introduce a new product, xRapid, including XRP. Banks see the new product as an option to use XRP. Investors see the potential of the currency as a financial means used by banks around the world.
Ripple, or XRP, is a rising cryptocurrency. Bitcoin is different from the main digital currency because its supply is controlled by the founding company. Ripple is talking about banks that will take over in the future. It can be speculated that the recent rise in the value of Ripple will encourage further discussion about its viability as an active cryptocurrency.