What exactly is Ripple?
Ripple provides quick processing times and reduced transaction fees, which makes it so popular right now. Many financial institutions have made use of Ripple during the last few years.
Some people might think that Ripple happens to be a cryptocurrency, although it is not a fact. However, it comes with a native cryptocurrency which is known as XRP. Individuals who prefer to invest in Ripple can also purchase XRP.
How is it possible to buy Ripple?
XRP happens to be the cryptocurrency token of Ripple, as mentioned earlier. At present, we obtain Ripple on several exchanges. If one wants to purchase XRP, he will have to create plus verify an account on any of these exchanges, namely, Kraken, Bitstamp, or GateHub. Following this, it will be possible for the person to start trading by depositing funds. Several other exchanges that likewise permit one to trade Ripple consist of CoinOne, Coincheck, BTCXIndia, Bitbank, Bitso, Korbit, Qryptos, and Bitsane.
It will be possible for you to send, store, and receive Ripple in something known as a wallet. You will require a wallet for sending funds and managing the cryptocurrency. In general, the cryptocurrency wallet will allow you to go through your balance, connect to applications, and send transactions. Several wallets will also enable you to manage many accounts from only one application since only you have custody of the funds.
It will be feasible to purchase fractions of XRP, and the smallest of them happens to be 0.000001 XRP.
How does Ripple work?
The main objective of Ripple will be to provide inexpensive, fast, and expedient cross-border transactions for financial institutions. This helps to make it a replacement for SWIFT, which happens to be the international payment system used by most banks right now. Ripple offers several benefits when it comes to global transactions. These are as follows:
- On average, a transaction will be processed in only 5 seconds.
- The transaction charge will be 0.00001 XRP which implies that it is much less than one fraction of a cent even when the token is at its peak when it comes to price.
- One can make use of XRP cryptocurrency as a bridge currency. This will allow the banks to trade currencies in a cheaper way. They will hold Ripple rather than different types of fiat money.
Ripple utilizes a consensus protocol for verifying transactions. Most validators must accept the transaction to verify it.
Ripple versus Bitcoin
You will come across several significant differences between Ripple and Bitcoin. Here, we have mentioned some of those differences.
- They use different systems for verifying transactions
Bitcoin verifies transactions and distributes new coins by making use of mining. Participants solve complicated mathematical equations by setting up mining devices. The first person who will be able to solve the question will be adding a transaction block to the blockchain of Bitcoin. Participants will obtain Bitcoin rewards in exchange for mining Bitcoins with every block they add. There are many advantages of Bitcoin in today’s digital world.
XRP verifies transactions using its consensus protocol. Most validators reviewing a particular transaction ought to accept the transaction to become approved.
- The supply of Bitcoin is limited
While the maximum supply of Bitcoin happens to be 21 million coins, Ripple comes with an optimum supply of as many as 100 billion tokens. For this reason, one Bitcoin is going to cost much more than one Ripple.
- Ripple is cheaper, faster, as well as more energy efficient
XRP has the ability to process transactions at a reduced cost within several seconds only and that too with minimal energy. For this reason, it is considered to be an extremely eco-friendly cryptocurrency at present.
On the contrary, Bitcoin transactions require approximately 10 minutes on average, and they also come with higher charges than employing XRP. Moreover, lots of energy is required for mining Bitcoin, which does not make it an environmentally friendly cryptocurrency whatsoever.
Will it be a sensible idea to accept Ripple as payment?
While negating the differences between cryptocurrency and fiat, the Ripple network also has extremely low transaction fees. If you are thinking of employing a crypto payment gateway, using Ripple will allow you to make cheaper and faster transactions.
