What is Ripple(XRP)?
Ripple was born to make secure and almost free global financial transactions, right now is one of the five most important cryptocurrency. Although when we call it Ripple, we are referring to the company and network behind the cryptocurrency, and its proper name is XRP.
Released in 2012 as an open-source protocol, it grabbed the attention of the banks, especially for its current messaging technology (we will explain in the future what it is).
When we talk about cryptocurrencies we always associate them with the blockchain system, but, unlike other cryptocurrencies, Ripple doesn’t have a blockchain. Instead, Ripple uses its own technology, the Ripple Protocol Consensus Algorithm (RPCA).
Also, there is no possibility to mine or harvest Ripple, all of them are already mined, and 61% of them are owned by Ripple Labs, which means there is something like a monopoly of coins.
Unlike other cryptocurrencies, Ripple is highly centralized, the developers can decide when and how much to release on the market, almost like investing in a bank.
The coin, XRP, is mainly used as a token to pay transactions fee on the network, an amount of $ 0,00001. The fees are also programmed to disappear after the transactions, they are not staking in someone’s wallet, they just disappear. Both, the amount and the disappear action, are here for a purpose, to prevent DDos and Spam attacks on the network.
Right now Ripple is supported by some banks, like Santander, Axis Bank, and others, which gives XRP a net advantage on other cryptos, and probably a much secure investment, but everyone knows how the crypto markets can be volatile.