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What is Ripple?
Ripple, also known as XRP, is a unique cryptocurrency in the sense that it isn’t mineable and is used as a means of exchange, rather than storage of wealth. It was envisioned to facilitate transfers of money across borders making them fast and cheap. Another feature is the implementation of smart contracts. The developers are in close contact with many banks and businesses, understanding their needs and further improving on the project. The currency supply is fixed at roughly 1 billion, and new coins are issued by Ripple themselves. The smallest unit is 1 millionth XRP or 1 Drop.
Advantages
Here are some of the advantages of Ripple, that may pique your interest in the coin:
- XRP consistently handles 1,500 transactions per second, 24/7, and can scale to handle the same throughput as Visa
- Ripple is a decentralized remittance platform – you can transfer fiat currencies, digital currencies, and commodities. It uses a blockchain data structure and has its own consensus protocol
- Open-source technology built on the principles of blockchain with a growing set of validators
Disadvantages
Centralization is one of the main issues when talking about the Ripple cryptocurrency. Below are some other drawbacks of the network:
- The main problem is the way XRPs were distributed – Ripple Labs created the network with 100bn coins in it, and no new ones have been created since its inception
- Ripple owns about 60% of the initially issued tokens – the company could try cashing out and potentially crash the market
- The amount of XRP coins owned by one company gives it a negative reputation. A lot of people in the crypto space dismiss Ripple outright as s “pre-mined scamcoin” due to the number of coins owned by Ripple
History and Evolution
Back in May 2011, Jed McCaleb began the development of the digital currency now known as Ripple. In August 2012, he hired Chris Larsen and together they continued improving the project with the implementation of the Ripple Protocol (RTXP) alongside the Ripple Exchange Network. The 11th of April 2013 was the official launch date for the project, while later that year the company rebranded to RippleLabs. Since then, it has grown reaching milestones such as becoming the 4th company to receive a BitLicense license from New York’s Financial Department. It also created a joint venture with major banks (Bank of America, UniCredit, Royal Bank of Canada etc.) for further improving global transfers. The developer team also implemented new tools such as xCurrent, xRapid and xVia while having more than 100 financial institutions testing their international payments technology.
Ripple Blockchain
XRP’s blockchain is centralized with the company as a central authority. This is done to provide more control and accountability. The main goal is to offer cost-effective, real-time transfers of funds for financial institutions and businesses around the globe.
Proof of Correctness is the consensus algorithm used, alongside a proprietary hashing function called RPCA (Ripple Proof of Correctness Algorithm). The way it works is by using validators, which determine the order of transactions and thus avoiding double spending. As there is no mining involved, there are no blocks and new XRP coins are issued based on a smart contract that’s valid from the launch of the network.
XRP Nodes
In Ripple’s network we have three types of nodes:
- Regular nodes – supporting the network by keeping a local copy of the blockchain
- Validators – responsible for certifying transactions and securing the network. Everyone can become one, however, other nodes create groups of trusted validators
- Gateway nodes – to become one you’d need permission from the network. These types of nodes interact with networks outside the blockchain and are usually financial institutions, exchanges, merchants and other businesses
Noteworthy Features
In addition to its basic functions, Ripple has implemented three additional features that increase its usability.
xCurrent is an enterprise solution that facilitates settlements and post-transfer acknowledgment. Using this technology banks can communicate and confirm transactions in real time.
Another one is xRapid which is useful for payment providers as it allows for higher liquidity at lower costs.
Finally, we have xVia – a simple API that requires no software installation, enabling transparent payments across different networks while allowing for attaching additional information, such as invoices.
How to get Ripple cryptocurrency
As previously mentioned, Ripple coins are non-mineable, thus the only way to obtain it is via exchanges, be that fiat-crypto or crypto-crypto.
Where to Buy XRP
Here are the top 3 exchanges that I consider best for buying Ripple:
| Exchange | Cryptocurrencies | Fiat Money | |
|---|---|---|---|
|
Bitfinex
|
Ripple, Bitcoin, Ethereum + 50 more | USD, EUR, GBP | Trade now |
|
Kraken
|
Ripple, Monero, Stellar + 10 more | USD, EUR, JPY | Trade now |
|
Bitstamp
|
Ripple, Litecoin, Bitcoin Cash + 15 more | USD, EUR | Trade now |
Wallets for Ripple
Most alternative wallets available allow users to operate with them, without downloading the entire blockchain. Other benefits include higher levels of security, multi-coin support or different forms of private key storage. Below, you will find the top selection of wallets that support Ripple.
Alternative Wallets
Alternative wallets can offer benefits like easier access, faster synchronization, the ability to hold alt coins, having higher security or just being a cold storage wallet. Here are the top choices for each category that support Bitcoin:
Desktop Wallets
Online Wallets
Mobile Wallets
Once you have downloaded the wallet of choice or bought the hardware, you’ll need to create a wallet address and you’re ready to buy XRP.
News and Useful Links
To stay up to the date with the latest and greatest around Ripple and its feature, you can visit their official website.