Published On: Tue, Aug 20th, 2019

What Is Ripple And How To Buy It?

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Ripple Protocol is a protocol that uses the Ripple currency (with the same name) or XRP i.e. another cryptocurrency with the goal of trading in real time.

It is designed to be used by banks to exchange money, remittances and any kind of transactions.

Its main idea is for banks to replace old trading systems such as SWIFT, developed in 1972 and still used today by most banks worldwide.

What is Ripple currency (XRP)

It is quite common to confuse the Ripple protocol with the currency Ripple (XRP). The cryptocurrency Ripple (XRP) has been issued by Ripple Labs. XRP is a token (let’s say cryptocurrency not to confuse you more) using Ripple Network and can trade very quickly and with low Fees. Ripple was released in 2012.

Who and why they use Ripple for their trades?

Ripple is used exclusively by large institutions, such as banks!

The whole idea of Ripple is to allow banks to transfer any kind of asset, whether it’s a currency, like euros or dollars, gold, or any other. It can transfer transaction data between different institutions almost instantaneously. Its main goal is to speed and reduce transaction costs.

If you have ever purchased a domain name with Bitcoin(or any other service) you have experience of how long it takes for the transaction to be confirmed. Of course, you will get the domain (or the service you are purchasing) instantly but the transaction will be delayed.

Also, if you tried to buy bitcoin by bank transferyou will know how complicated it can be for some. You should contact your bank, in case you do not use ebanking things are much more difficult, send the transaction with the Swift bank code while this can take from two three days and in them you have to take into account the transaction costs, which are involved for both the sender and the recipient at times.

Ripple has been built to revolutionize with instantaneous transactions that last a few seconds for institutions, such as banks. It has already been adopted by several large banks and is expected to be adopted in banks from all corners of the world. According to satoshisbrain.com, Ripple is being used now in banks which are headquartered in London, Australia, Luxembourg, Japan, South Korea, New Zealand, United Arab Emirates and dozens more. The American Express is experimenting for its adoption also in the last period of time.

Pros-Cons of Ripple

  • It offers significant advantages both in the speed of the transaction and in its monitoring.
  • It only takes 4 seconds to confirm the transaction.
  • Very small fees compared to Bitcoin, it is faster and less costly to send to transactions.
  • It’s a Centralized coin. However, there is one important issue that arises from something like that. This is the lack of decentralisation (decentralized), the lack of power of users on the currency. This is also the innovation that blockchain technology has brought. Ripple is a closed network. It does not require extraction (mining) from users to create it like most cryptocurrencies like Bitcoin, but its total number is based on its creators. This is something that makes it a purely Centralized currency.
  • Ripple Labs is actually a company and this is very different from the mentality of Bitcoin, where Bitcoin is fully decentralised and lacks a central controlling principle, no government or organization is hiding behind it. Each of its users is the “Bank of itself, removing the middlemen “.
  • Despite the minimal cost of fees, one of its negatives is that fees are charged even for transactions that failed to occur (e.g. you tried to send more money than was available in your account).
  • Each Ripple account to remain active must have at least 20 Ripple as the remainder.
  • In the positive, of course, we cannot overlook the great investment opportunities that it offers, since its price seems to be ejected.
  • It Is Located in the top five of cryptocurrencies, and at some point it has come to be second under Bitcoin. The market capitalization of Ripple reaches 90 billion euros, while to have a benchmark in Litecoin it reaches €10 billion.
  • The price of the 2017 was some cents and now passes the 2-3 euro €

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