Ripple is a currency exchange, remittance network and real-time gross settlement system (RTGS). It was originally released in the year 2012 as a subsequent iteration of Ripplepay. Ripple doesn’t rely on the energy and computing intensive proof-of-work that is used by Bitcoin. Ripple uses a common ledger that is supervised by a network of independently validating servers which constantly compares the records of the transaction. Moreover, Ripple is based on a shared public database that uses a consensus process betwixt those validating servers in order to ensure integrity. The validating servers can belong to anyone in this world whether its an individual or a bank. The ripple protocol token is represented as XRP which enables the direct transfer of money along with the near-instant of money between the two parties. With Ripple, any type of currency can be exchanged whether it is Fiat currency or gold or even airline miles. You can be benefited from Ripple as they claim to avoid the wait times and the fees of traditional banking which also includes Cryptocurrency transactions via exchanges.
Most people are unaware of the fact that Ripple is not a Blockchain. It is its validating servers and consensus mechanism that makes people feel that Ripple is based on Blockchain technology. It is more of consensus-oriented. With Ripple, the data gets summarised via HashTree. And the data is summarised into a single value which is compared across its validating servers in order to provide consensus.
Ripple is very much popular among the banks and banks seem to like Ripple as well. Now the payment providers are coming inboard with Ripple, every day. Ripple is built for enterprise yet it can be used person to person but this doesn’t seem to be the primary focus. The supreme focus of the Ripple platform is to move loads and loads of money around the world as fast as possible.
Ever since its release, Ripple has been very stable and there are over 35 million transactions per second. Ripple is able to process 1,500 transactions per second and it has been updated to be able to scale to Visa levels of 50,000 transactions per second. This is much more like “infinity and beyond” kind of faster than Ethereum and Bitcoin.
The major difference between Ripple and other Cryptocurrencies is that Ripple’s token, XRP, isn’t mined like Litecoin, Ethereum, Bitcoin, etc. Rather, it was issued at its beginning which is very much similar in fashion to the way a company issues stocks when it incorporates itself: They just picked a number i.e., 100 billion tokens and issued this number of XPR coins.
The value of Ripple network is the network itself and its efficiency to move assets around the world as quickly as possible rather than concentrating on XRP token. Many banks use the Ripple software to shift money between foreign currencies. Ripple claims to have signed up more than 100 banks till now. The future of Ripple seems to be in a good state as of now.
Ripple is a realtime gross settlement system, money exchange and remittance system made by the Ripple company.
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