The XRP cryptocurrency is probably what most people think of when they think about Ripple. However, despite the fact that Ripple uses the XRP currency for specific reasons inside its ecosystem, the firm, technology, and ecosystem are not totally similar to XRP.
So, what issue is Ripple seeking to address? The progress of technology has significantly affected the speed and ease with which information flows throughout the world. Money transmission, on the other hand, has remained far more complex than, say, putting items into the cloud.
XRP’s market value was around $39 billion by the end of 2021, making it one of the most valuable cryptocurrencies in the world.
How Does Ripple Work?
Rather than using proof-of-work, or PoW, for transaction verification like Bitcoin, XRP transactions are confirmed using a unique consensus mechanism in which validators compare proposed transactions to the most recent version of the XRP Ledger. Only transactions that have been validated by a majority of validators are recorded in the ledger. A network of bank-owned servers powers this consensus mechanism.
Ripple’s default validator list is made up of 35 reliable nodes. Ripple selects which validators are included in the default unique node list, and the Ripple organization is in charge of six of the 35 trusted validation nodes.
XRP, on the other hand, is not created by mining. Instead, there are already 100 billion coins that are released to the public on a regular basis. Ripple reportedly owns around 6% of XRP in order to motivate the firm to support and promote the cryptocurrency over time. Half of all XRP tokens are held in reserve for future market sales. Investors cannot earn XRP by mining or staking their holdings since the XRP transaction verification mechanism is not proof-of-work (PoW) or proof-of-stake (PoS).
RippleNet is a global, decentralized network of banks and payment service providers that use Ripple’s technology for messaging, clearing, and financial transaction settlement. RippleNet’s solutions include the xCurrent software, which is designed to be installed in a bank’s infrastructure and process real-time, cross-border payments at a minimal cost. Ripple’s xRapid service provides financial institutions with on-demand funding, lowering their liquidity costs and improving their client experience. Ripple’s xVia allows banks and other enterprises to transfer payments across many networks using a single standard interface. RippleNet presently has over 100 members from throughout the world, including Santander Bank NA in the United States, Canadian Imperial Bank of Commerce (CM) in Canada, and Kotak Mahindra Bank in India.
Ripple started in 2004 as the money transfer service RipplePay. RipplePay was created by Ryan Fugger, a software developer. Engineers David Schwartz, Jed McCaleb, and Arthur Britto started working on the XRP Ledger in 2011, with the objective of producing a faster, more efficient version of the Bitcoin blockchain dedicated to payments.
In 2012, Fugger and the three engineers founded a new company called OpenCoin. OpenCoin was built on the RipplePay source code, but it used a ledger-based payment method designed for financial institutions. The XRP Ledger was introduced in June 2013.
OpenCoin was renamed Ripple Labs in 2013, which was subsequently reduced to just Ripple.
Where can I Buy XRP ?
Many exchanges, including Binance and Kraken, let you purchase XRP in exchange for euros or dollars. You can buy XRP directly from Kraken or Binance, or use these services to exchange another cryptocurrency for XRP.