Ripple is the name of the company and is an open source protocol designed to make transactions fast and cheap. The native cryptocurrency used on the platform is XRP.
What is Ripple (XRP)?
Ripple, the foundation of which was laid in 2004, came to life as a company in 2012. In the same year, the native cryptocurrency XRP was launched. Ripple aimed to establish a less costly payment system in the banking and financial sector. XRP, which is a crypto currency, offers the opportunity to transfer in seconds with its convenience for daily use and wide usage area.
Another feature that distinguishes XRP from other cryptocurrencies is that it is controlled by a single company. Ripple has a close relationship with banks and other institutions. Ripple’s open source protocol and network is currently used by banks and other institutions.
The Ripple network, which is not a direct competitor to other cryptocurrencies, is defined as an updated version of the SWIFT system used by banks. The main purpose in the creation of Ripple is to establish a network that allows many transactions to run simultaneously at high speed.
One of its goals is to attract the attention of major technology banks, remittance services and payment providers. As mentioned, Ripple is seen as a competitor to financial infrastructure services such as SWIFT, not other cryptocurrencies.
How Does Ripple Work?
Unlike Bitcoin or Ethereum, Ripple does not run on a blockchain. Instead, Ripple has its own proprietary technology, the Ripple Protocol Consensus Algorithm. The native cryptocurrency, XRP, is not tied to the POW algorithm.
For this reason, it does not need a lot of energy and computing power, while allowing transactions to occur faster. RippleNet is defined as a network developed by Ripple for the purpose of sending and receiving money internationally.
Transactions on the Ripple network go through verification servers that constantly compare information and post it in a common ledger. Payments in all currencies are allowed on the platform. It asks for a symbolic commission fee as a transaction fee. In order to prevent DDos attacks, it is completely free.
Advantages
Ripple was originally designed as a daily payment system. It has a stronger infrastructure than Bitcoin. For this reason, transactions take place much faster and cheaper. Ripple was established as an official organization. It aimed to be preferred by banks. Therefore, regulatory compliance in many other cryptocurrencies is not a concern for Ripple.
Banks That Support Ripple
Ripple’s main goal is to be preferred by big banks. Banks that support Ripple; It can be listed as Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD, UBS.
What is XRP Coin?
XRP was created by a single company called Ripple, unlike Bitcoin, which is managed by a decentralized peer-to-peer network and not controlled by a single person or institution. Unlike Bitcoin or other cryptocurrencies, XRP does not work with a Proof of Work (PoW) or Proof of Stake (PoS) mechanism. Instead, the participants in the Ripple network use a consensus algorithm because they are known and trusted by each other.
This consensus mechanism is one of the prominent features that make XRP different. XRP is defined as a token used to represent transfers of value over the Ripple network. The main purpose of XRP is to mediate cryptocurrencies and traditional currencies. For example, when you want to convert the dollar to euro, XRP works to minimize the commission. It acts as a wildcard for the dollar and euro, and does so for a symbolic commission fee.
