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Exploring Ripple and its features

by Sonal Shukla

The world of cryptocurrency is always brimming with new additions, and you can find several new cryptocurrencies making their way into the market every month. As the era of cryptocurrency started, there was only bitcoin, but today there are more than 18,000 cryptocurrencies. All these highlights are that people are attracted by the decentralized platforms and there is a growing use of them across the globe. Large numbers of people are involved in investing in them. One of these cryptocurrencies is Ripple which you can include in Bitcoin investing in crypto investment profile with other cryptos.

Unfolding details of Ripple (XRP)

Ripple cryptocurrency network is actually a Real Time Gross settlement system or in short RTGS which also promotes crypto exchange and remittance by ripple labs incorporation. That it was introduced in 2012 and is developed on the distributed open-source system, it supports tokens representing fiat currencies, commodities, cryptocurrency, and other units. 

It also ensures secure transactions across the globe. The best part about this system is that it is highly scalable. Using consensus leisure, the network of servers validates the transaction, thereby eliminating the need for Central authority. Hence, it becomes a part of a decentralized exchange system that makes it work easily.

Working of Ripple 

XRP is the digital acid of the triple system. The transaction is verified by the people in the network rather than minors, as in the case of bitcoin or Ethereum. When it comes to its market capitalization, Ripple was the second largest cryptocurrency after bitcoin terms market capitalization, and XRP was the third largest digital currency by market capitalization. 

Consensus ledger of Ripple

It is a distributed database that allows consistency in the centralized format. Ripple has a unique consensus algorithm that does not require mining. Hence it is a more energy-friendly option as compared to bitcoin and Paytm, which operate on proof of work and proof of stays mechanisms.

The consensus process allows the transaction to be verified and recorded in the leisure without any thirdparty approval. This is done via a network of servers that is responsible for the validation of the transaction. 

What exactly is XRP?

When we are talking about Ripple, it is also important to mention that its native cryptocurrency that is XRP. It is a digital asset of Ripple and facilitates transactions on the system. You can use XRP to purchase goods and services, and you can even trade it on a crypto exchange. You can also buy bonds in stock using XRP.

Difference between Ripple and XRP

Do not confuse Ripple with XRP. Ripple is a network, and XRP is a native digital asset of this network.

Some key features of Ripple include:

The system of Ripple is a Real Time Gross settlement system that facilitates the quick exchange of currencies or fast remittance.
Ripple is developed on an open-source system that also supports currencies, commodities, and other assets.
Ripple system is more scalable and fast working as compared to bitcoin, and hence it offers instant transactions at a lower cost.

Unlike bitcoin and Ethereum, transaction on a ripple system is approved by the members of the network. There is no mining process involved here. Hence functioning is very much different.

No native cryptocurrency of Ripple. Rather it is a digital asset on the system, which is termed XRP. Ripple user shared ledger, which allows the creation of any kind of asset.

One of the primary reasons for introducing the ripple network is to make it more scalable and perform as compared to other systems. This is a Blockchain-based system and executes transactions at a faster pace at compare to another system.

In banks and other financial institutions, Ripple is mostly used for quick fund transfers and to execute faster cross-border transactions at minimal fees.

This detail of the cryptocurrency Ripple would have given you an insight into its usability and applications. In the times to come, we are going to see many new trips to currencies paving their way in the world. Adding them to your list of investments will give you the option of diversifying your portfolio and making it more versatile. You can also start trading in other cryptocurrencies like bitcoin, Ethereum, or dogecoin that are generating good profits now with some reliable and easy-to-operate trading platforms like bitqh. For this, you need to register yourself on this crypto trading platform and you can immediately start your trade.

Closing thoughts

This brief discussion on Ripple would have given you an insight into how you need to review a particular cryptocurrency or system before getting into it. Remember, crypto transactions are rewarding but only if you focus on your research and pay attention to the minor details.

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