Chris Larsen and Jed McCaleb had created Ripple in 2012 as blockchain based digital money transfer network for fulfilling the requirements of financial transactions.
Features And Objectives Of Ripple Network
1. The services of Ripple involve becoming medium of exchange, remittance system and international payment and settlement system.
2. Working of Ripple is based on an open source and peer-to-peer decentralised base which aids in easy transfer of different forms of Fiat money, also it could be dollars, pound or rupee or even cryptocurrencies as Bitcoin or Ether.
3. Ripple was so developed to ensure instant, secure and free global money operations despite of the amount without having any back charges.
Despite of all this, Ripple network is having its own native cryptocurrency XRP , developed for serving and operating many of the utilities on the Ripple Network. Launch of XRP was made in 2012 with just 100 billion tokens, where out of these 80 billion tokens had gone to the company and remaining 20 billion to its co-founders. Ripple network and XRP work together for enabling the exchanges of many different currencies, involving Fiat money and famous cryptocurrencies.
Working of XRP On Ripple Network And It’s Advantages
1. Creation of XRP is done with the aid of less complex method of mining when compared with Bitcoin.
2. XRP functions as intermediate mechanism of exchange between two networks or currencies and is also pre-mined.
3. Faster conversion of various currencies on Ripple network could be done with the aid of XRP for it’s different customers from major banks to financial services.
4. Proof-of-work (POW) mechanism or Proof-of-stake (POS) mechanism is not used for Ripple network for its operations.
5. Cause it is using disturbed consensus mechanism via group of bank owned servers for confirming transactions and also balance of accounts on the network.
6. Working of consensus is based on enhancing the integrity of the system by preventing double spending.
7. Transaction cost on Ripple is as low as 0.00001XRP for the cross-border payments against large amount of fees charged by the banks.
8. Transactions of Ripple are basically energy-efficient and also way more cheaper than Bitcoin.
9. Also the transactions made with XRP are done within seconds when compared with large amount of minutes taken by Bitcoin.
10. Bitcoin’s limited total stock of 21 million coins are opposed then Ripple’s smart contracts control tend to release maximum of 1 billion XRP tokens each month, thereby being available for prospective users for buying.
11. In addition to all the above qualities, XRP also play effective role in bridging currency, thereby making exchange of one currency into another in an easy form, no matter it be cryptocurrency or Fiat currency.
Therefore, it’s profitable to purchase Ripple (XRP) cryptocurrency and also to invest in the same for the above mentioned benefits alongwith having an added advantage of being at the 8th position amongst the rest of the cryptos.
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