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This is a whole new world of the cryptocurrencies, many people are switching to cryptocurrencies the number of investors are increasing day by day, in this world there was a need of a platform a place where trade can take place safely and efficiently, a platform which is not controlled by a central authority and there is a not a need of a third party in it. So, in this world Ripple was introduced, which is one of the very eminent Cryptocurrency and XRP is its digital asset which has also become very notable in the world of cryptocurrencies. Ripple is not just limited to be an eminent Cryptocurrency, but it is also a notable and an amazing safe, secure block-chain technology.
In this article we’ll learn and get to know more about Ripple and its asset XRP.
Read Also: Are the XRP Trades Facing the Highest Losses When They are in the Market?
History of Ripple
When and How was Ripple Formed
Ripple is Inaugurally known as the Opencoin, and it was formed in the year 20twelve. Ripple was founded by Jed McCaleb and Chris Larsen in the year 2012. In the past transfers of money across countries were pestering and to get rid from this Ripple was formed. Also the transfers of money used to be very time consuming and also a very high-fees needed to be paid and to solve all these issues a Cryptocurrency named Ripple was finally formed.Ripple was developed in the response of a technology named Bitcoin.
Special accord approach of Ripple
- The most unique feature of Ripple is its Unanimity procedure. Most of the cryptocurrencies of today’s world mostly depend upon the two styles and approaches that the proof-of-work and proof-of-stake approach. But Ripple decided that it will use its another different approach which will be solving all the issues which the remaining two approaches were not able to solve. Ripple introduced its technology named Ripple Protocol Consensus Algorithm, and this algorithm proved to be very useful to the investors and the users of Ripple. In this algorithm of Ripple, many networks join and connect together and verify the transactions which have taken place.
- At the beginning, the network of the Ripple includes Ripple Consensus Ledger, Ripple transaction protocol, Ripple network and the XRP Cryptocurrency,etc these all are the parts of the Ripple network. Also these all are used in the ledger of the Ripple and there are chances that in the future these all can be used in the XRP ledger as well. After that when the XRP ledger was formed around 80 billion tokens were being offered by its developers, and this is because of how much the developers liked the XRP ledger.
- In the year twenty20, funds were raised to change the infrastructure of the XRP ledger and also to increase the efficiency of it. The amount raised was around $6.5 million to make a fund for the XRP community. Currently this community has become a very integral part of the whole biome of the Ripple.
Purpose of the XRP
- Intermediary between two exchanges and currencies, with the help of XRP exchange between the currencies and exchanges takes place.
- XRP is responsible for providing liquidity to exchanges, because without liquidity no exchange can run properly.
- XRP has to make the money settlement across different countries, and it does it at a very high speed.
- The transactions or the money settlement work which takes place on the XRP don’t cost a lot of fees, they require a lot less fees than many other platforms.
Savvy about XRP
XRP is the Cryptocurrency token of Ripple, the basic objective of Ripple is to relocate finances from one country to another or from one person’s bank account to another or from one city to another. And also it transfers money at a very low cost due to which people prefer to use XRP more than many other tokens. Its main purpose is to act as an intermediary currency, providing financial institutions with a more economical method of exchanging both cryptocurrency and traditional fiat currencies. But you should also be keeping in mind that connecting assets can be a risky option for all the fiscal entities who are subservient on the Ripple framework to provide them quick assets.
In simple language we can say that, XRP is a token of the digital Cryptocurrency named Ripple. It was developed to provide the users with fast transactions and also do that at a very low cost. Also, because of XRP the Ripple has gained a lot of name and is among one of the top cryptocurrencies. XRP’s company has always made sure that they provide the users with amazing services and also ensure transparency, safety and security as well.
How does the XRP work?
The XRP works like just other cryptocurrencies, the block chain of the Ripple keeps perpetual records of the transactions which had taken place. The records are maintained in an online ledger. This ledger is called the XRP ledger. All the transactions are being recorded in this XRP ledger. This data is then encoded with the private and public pair of keys. The individuals who own the private keys are the only ones who can validate all the transactions.
Key points of transactions done by the XRP:
- Transactions completed within seconds.
- Don’t require much time.
- Money is transferred in the local currency of the individuals.
- Transactions validated by more than 150 servers.
There is a unique node list in which there are more than thirty five servers, and it is mandatory for these servers to validate a set of transactions and only then a transaction will take place. These servers are responsible for everything from the start of a transaction till the end, meaning till the transaction is completely settled down. Also for the transactions to get recorded in the XRP ledger they are needed to get verified and if any transaction fails to get verified successfully, then the record of that transaction is not made in the XRP ledger and after that these transactions are times recorded in the block chain permanently and this is done to ensure that the transactions are unchangeable and this way after this whole process a new block is added to the XRP blockchain.
Challenges faced by Ripple
Today we can see that Ripple has grown a lot ,it is a very well known and reputable cryptocurrency, it has reached a very great height. But it also had to face many challenges in the past. Among those challenges one is that:
- The Securities and Exchange Commission of the United States had filed a case against Ripple in the year twenty20, saying that Ripple was not registered and it is an unregistered cryptocurrency and this case has not yet been solved, since the last 3 years they are fighting this case.
- The XRP of Ripple ensures that it will provide the financial institutions with Liquidity, but it has become difficult to make them believe on this and to invest in it, which is becoming one of the major issue.
- The market in which Ripple is, it is a very competitive market as many companies are switching to block chain technology, so it is difficult to survive in such a competitive market.
- As the Ripple is becoming a reputable cryptocurrency and many investors and people are getting attracted to it, so it is difficult at times to manage such high volume of transactions.
- It is also a difficulty to convince different financial entities, banks to use Ripple, due to which it may face difficulty in the process of expanding itself.
- Media covers and shows the negative sides of the Ripple and XRP to its audience, due to which it has difficulty in raising its name.
Over time, Ripple has gained its name and also has made a good place for itself in the minds of people. But there are so many challenges it needs to face and if it fails in doing so then it may lead to loss for Ripple and XRP. But also Ripple has faced many challenges in the past and now it is here and it is the most commonly traded cryptocurrency. Ripple has also built it’s trust among the mind of the investors and the traders in this competitive market where there is huge competition going on. XRP is well-known for its amazing and fast fund transfer system and also the way it leverages block chain technology is amazing. Also the future of this Ripple depends upon whether it continues to provide a good system to its users and investors and whether it makes the changes when required or not.
XRP is commonly used for exchange and transfer of the funds.
We cannot say that whether XRP is a good investment option or not because the prices of the cryptocurrencies keep on changing due to many various factors, so it is necessary to look at the charts and also at the market conditions along with the demand of XRP in market, before making an investment in it.
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