A.D. With a 35,000% inflation rate and a market capitalization of over $ 118 billion in 2017, Ripple has become a hotly debated topic among analysts and investors. But, what is Ripple? Like other crypto currencies? Why is it burning so recently? Keep reading to find out.
1. What is Ripple?
Ripple is a payment solutions company founded by Chris Larsen and Jed McCaleb. Their Ripple Trading Protocol (RTXP) cryptocurrency has XRP. Ripple says it provides fast, reliable and affordable trading solutions to financial institutions. The company has created hundreds of billions of XRPs and currently holds 61% of the coins. The current plan is to release one billion cents a month.
2. Differences between Ripple and Bitcoin
Both Bitcoin and Ripple are crypto-currencies using blockchain technology. However, there is a fundamental difference between the two: Ripple cannot be produced as opposed to Bitcoin. The money was not prepared as a mine, and its use was fixed on the Ripple network.
Both Bitcoin and Ripple use authentication nodes. Bitcoin has about 10,000 trusted nodes, but Ripple has only five. However, the company plans to add 11 more in the next 18 months. The five authentication nodes are controlled by Ripple. XRP has been criticized in the absence of private credentials. The XRP Ledger is available to everyone, so anyone can download and verify it. Many companies run their own nodes on the Ripple network.
3. Reasons for Ripple’s recent price increase
The recent XRP inflation has a lot to do with the expected use of financial institutions and investment by investors. Ripple has been successful in acquiring banks as a customer for its other products. Ripple’s xCurrent is preferred by financial institutions because it provides real-time connectivity and quick fixes, minimizing delays in banking transactions. The company plans to introduce a new product, xRapid, which includes XRP. They see the new product as an opportunity for banks to use XRP. Investors’ financial potential is reflected in the financial vehicle used by international banks.
Ripple, or, more accurately, XRP, is a growing cryptocurrency. The supply is different from the digital currency run by Bitcoin because it is controlled by the founding company. Ripple is taking over banks in the future. One can only assume that the recent rise in price of Ripple will spark further debate over whether it is a cryptocurrency.