You may know about different type of cryptocurrency that can be mined and can be used to fo shopping. But, you may not know that ripple is quite different from all other coins. As it, cant is mined and can’t be used as shopping voucher as well. It is operated by a private company.
Ripple is much smaller than Bitcoin, which is dominating the cryptocurrency market. In the past year, the Bitcoin graph reaches the record height and then suddenly falls down.
But, in the last 12 months, the rates of ripple has been increased 29,000 percent and its value reached to $70 billion. If we compare it to bitcoin, which has received a huge success, as its value increased to $245 billion.
As ripple has been receiving huge success even it gambles sometimes. Due to a lot of news coverage, most of the people may be wondering about ripple and who created ripple including all related questions. Let us just take the simple tour of details of ripple.
About Ripple
Probably, you may have heard about bitcoin, litecoin, and several other cryptocurrency coins. Ripple is one of those but it is very much different from others.
Ripple can be named as a token. However, all other coins like bitcoin can be traded on their own value, tokens cannot be traded but they tend to be equal to something else.
Owner/ Creator of Ripple
Technically, this currency is called as “XRP tokens”, it is backed and created by a company named as Ripple Labs. Ripple Labs is known as a global company for transaction business.
Ripple is really different from other cryptocurrencies such as bitcoin and litecoin. The owner of these currencies is those who want to buy it on an exchange. This makes ripple unified as compared to other cryptocurrencies.
Difference between ripple and other cryptocurrencies
There has been a notable difference between ripple and all other digital currencies. Bitcoin is a currency that can be traded and used, however, a ripple is being backed and supported by some traditional currencies like dollar or yen.
The main reason behind the creation of ripple is to minimize the problems of money transaction from one country to another country.
As in traditional methods, people used to wait for a couple of days to get the money that is being transferred from other country.
CEO of Ripple Labs, Brad Garlinghouse said, the fasted way to transfer money from the US to London is to get on a plane and fly it over there.
Ripple introduced XRP tokens that are used for paying transaction fees between financial institutions. It allows the fund to be transferred between the banks which allows or have agreed on using this service. The transaction can be done in a couple of seconds, very fast as compared to traditional method.
A software engineer and cryptocurrency expert, Pierre Rochard said, “XRP is not intended to be money in and of themselves. They’re more like a gift card or a token at Dave and Busters to use the arcade machines.”
Why is it suddenly so hot?
Recently, there has been a rapid increase in the price of ripple. Rochard said: “The price pumping now is because there are rumors XRP will be added to Coinbase,”
In the U.S, Coinbase is considered as one of the largest cryptocurrency exchange and XRP’s addition here allows you to exchange them easily with cash. Due to high demand and limited supply, its value has been increasing day by day.
As you can be able to supply a maximum of $100 billion. Therefore, these tokens are considered as capitalist notions of demand and supply. And, in today’s market, it is increased and volatile cryptocurrency market.
This is why it is becoming more popular. Rochard said: “This is a dubious thesis. But there’s enough money washing around in the system to have people speculate on it.”
"The product that Ripple are offering to banks is simply a point-to-point messaging tool with some smart cryptography underneath to ensure that transactions are atomic. The liquidity model used is the same as correspondent banking.
— Ryan Selkis (@twobitidiot) December 29, 2017