Home » Crypto » Ripple Cryptocurrency | How To Buy Ripple

Ripple Cryptocurrency | How To Buy Ripple

First and foremost, it is important to know what cryptocurrencies are. Cryptocurrencies are digital or virtual currencies which have encryption techniques (converting data from a readable form into an encoded version which can be decoded by an authority that has the decryption key). The first popular cryptocurrency was Bitcoin, after which there has been an expansion of cryptocurrencies. And at present there are as many as almost 1,000 of cryptocurrencies available on the internet.

In this article we will discuss the third most popular cryptocurrency i.e. “Ripples”.

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Contents

What is Ripple

As discussed ripple is another cryptocurrency available on the internet with an acronym (XRP). It was originally founded by a single company, Ripple Labs and continues to be backed by it. Like other cryptocurrencies it is built upon a distributed ledger network which requires various parties to participate in validating transactions, rather than any singular centralized authority. However, transfer fees of ripple are far cheaper than other cryptocurrencies. The transfer of ripple is also immediate, which requires no typical confirmation time.

To understand the difference between traditional currencies and cryptocurrencies, it is important to understand the centralized and decentralized system.

  • Centralized System – Centralized system is when an activity is controlled by a particular organization under a single authority. For example, traditional currencies.
  • Decentralized System – In decentralized system nothing managed by a single organization or a single authority. And cryptocurrencies are based on decentralized system.

Is Ripple Centralized or Decentralized

Ripple is a mix between centralized and decentralized. According to reports, ripple holds 60% of total circulation and hence it can be called a centralized system. However, CEO of Ripple says that

the system is decentralized because XRP will continue to work even if Ripple disappears.

What Does Ripple Do

Ripple connects banks around the world and allows them to offer real time gross portal payment services to their customers. At present, gross portal payments requires many intermediaries to execute, hence settlements takes multiple days and that creates cost and risk that makes difficult in today’s market domain. Ripple enables gross market domains to execute directly between banks within seconds and provides the banks and provides visibility throughout the whole process. Ripple is an infrastructure technology banks can adopt for new payment services like low value retail and corporate payments.

What is the Objective of Ripple

According to an eminent economist, “Ripple addresses the need to keep money flowing”. The traditional money has a drawback for say transportability, and transaction fee and delay in processing. On the other hand, ripple clears out all these problems as it is a decentralized digital currency. However, it does not replace fiat currencies; it acts as a bridge between government backed fiat currencies in order to help transfer value across borders quickly and efficiently.

How Secure is Ripple

Ripple is designed on the XRP ledger, where transactions are recorded and it is also an open – source code base that is supported by a community of trusted validators and a dedicated team who channelize and actively manages the account.

Can Ripple Be Mined

Unlike many other cryptocurrencies such as Bitcoin or Ethereum, Ripple cannot be mined as XRP is not a mined digital asset and every single unit of the currency that exist now has already been created, with most owned by Ripple (55 billion of which are held in escrow) and the rest remains with the company and other individuals.

How much is a Ripple Worth

According to reports issued by a source, ripples were trading at around Rs. 82 per Ripple as on 28th January, 2017.

What is the Similarity of Ripple with the Internet

According to Ripple

Present day payment systems are working on the similar grounds as email in the early ‘80s.

There are several payment ways on the internet built by different developers. Hence, it becomes difficult for customers to comprehend and communicate. Ripple is designed in a way that it can associate different payment system together.

Where to Buy and Store Ripples

You can buy and store ripples like any other cryptocurrency. All you have to do is to make an account on an exchange and buy them using local currency. You can also store them in an online wallet and from there you can also send them to any other ripple user. However, it is advisable to store them offline in a wallet like the ledger.

What is the Difference Between Ripple and Bitcoin

Below mentioned are the difference between Ripple and Bitcoin:

Differences Ripple Bitcoin
Purpose Ripple is created to be a payment system, remittance network and currency exchange Bitcoin was created to serve as the peer to peer (P2P) cryptocurrency protocol.

(P2P – computer system which are connected to each other via the Internet)

Mining Process Ripples were already created 100 billion Ripples for the release and out of which 55 billion ripples will distributed between users, charitable organizations and strategic partners Bitcoins are designed in a way that the users can mine them
Transaction Speed Ripple is faster than Bitcoin. It takes just 4 seconds to authorize Bitcoin transactions takes longer as Bitcoin blockchain requires mining process
Transaction Fee Ripple transaction has fee which destroys eventually and the fee is not paid to anyone Bitcoin on the other hand, does not require any transaction fee
Information Tracking Ripple can track information such as account balance Bitcoin tracks the movement of Bitcoins

 


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