To simply define it, Ripple is just a mode of payment that makes use of blockchain technology for international money transfers. It is increasingly being preferred because the platform has very low transaction fees. Along with that, your transactions are conducted in no time unlike others in the market. Currently it has united in its initiative to work together with multiple financial institutions over the globe. read more
If you are under the impression that Ripple is a Cryptocurrency, then you are highly mistaken. It is not a Cryptocurrency. However, it has a native Cryptocurrency that goes by the name XRP. It works similar to the Bitcoin system.
It means that it works similarly like the decentralized system on a peer-to-peer platform. As a result, you get the service of smooth transfer of money in any country. Some of its prime customers are the global banks and financial services. Every transaction there is carried out in the unit of XRP.
Understanding Ripple becomes very simple when you talk about it in terms of “hawala”. It acts as a digital hawala when a money transfer is carried out between two parties at either end of the system.
The Beginning of Ripple
Ripple was initially developed by Ryan Fugger during 2004. With the help of this site, he enabled people to give credit to others enrolled in the community. So, if you analyze Ripple you will understand that it came around even before Bitcoin that came into existence in 2009.
Moreover, it was not called a Cryptocurrency. The proof that Ripple existed even before Bitcoin finds the day of light in Satoshi Nakamoto’s email where he mentioned the word “Ripple.”
Developmental Work On Ripple
Apart from that, the serious work on it began only in 2011 by a programmer Jed McCaleb. It was the time when its blockchain and Cryptocurrency was being developed. For this, he hired a whole team of developers and he also worked toward finding investors. Finally, he went forward to its original founder, Ryan Fugger to ask his permission to use it. Ultimately Fugger relinquished total control over RipplePay and gave it to programmer Jed McCaleb.
The Format in Which Ripple Works
Furthermore, to make the system run efficiently it needs to work on a treaty of harmony. Unlike Bitcoin or NFT, it does not need proof-of-work or proof-of-stake. The system’s integrity becomes even better in its ability to prevent double-spending.
So, no one can make multiple transactions. Even if it is initiated it will be deleted. Here the individual nodes will decide the first recorded transaction in that name. Therefore, the consensus is reached upon in just under 5 seconds. So it is very quick.
It has an open public ledger where all the transactions are kept on record and it is available for all to see. But you will not see that data linked to any individual account or ID or even business house.
Benefits Of Using Ripple
Ripple is advantageous because its performance is unlike the conventional banks. The transaction happens so quickly that it will happen in a fraction of a few seconds. Another good thing about Ripple is that they have minimum transactional fees as compared to other platforms or banks. Additionally, you can even trade Ripple on the Bitcoin Era app platform for safe trading.
Understanding the Relationship between Ripple And XRP
You should never make the mistake of cross-connecting Ripple with XRP. XRP is a Cryptocurrency and Ripple is a company that makes a profit by developing and promoting XRP. Hence, the company ensures that the two units remain different and unattached.
Applications of XRP
Furthermore, Ripple was created with the intention of transferring money across the borders seamlessly and in a very quick time. It is unlike the conventional banks that functioned across the various countries. They even gave this service for very little transaction fees. Overall it is a very reliable and trustworthy system.
To conclude you can say that it is a very convenient means of money transfer that has helped millions across the world with its power-packed system and offerings. You even require no pre-fund account. It is a system that enables reliability and efficiency in international money transfers.