What is Ripple?
The first thing to know is that Ripple is both a platform and a currency. The Ripple Platform is an open source protocol designed for fast and cheap transactions.
XRP is a token used to represent the transmission of a value over a Ripple network. The main goal of XRP is to be an intermediary for others, both for cryptocurrency and fiat exchanges. The best way to describe XRP is with the Joker, a card that can be any other card. If you want to exchange dollars for euros, this can be done through Ripple to minimize commission. As stated above, the transaction cost on Ripple is $ 0.00001.
An interesting fact: after the transaction, the amount of $ 0.00001 “disappears” from the platform and cannot be replenished. Thus, with each transaction, the world is getting 0.00001 poorer.
Who created Ripple (XRP)?
The protocol as a working prototype was created back in 2004. But the real story begins in 2013 when Jed McCaleb, the creator of EDonkey, invited a group of world-class investors to invest in Ripple Labs.
What is Ripple used for?
Low commission currency exchange. There are many currencies that cannot be directly converted into each other. Therefore, banks should use the US dollar as an intermediary. Thus, there is a double commission: the conversion of currency A into USD and USD to currency B. Ripple is also an intermediary, but much cheaper than US dollars (USD).
Fast international transactions. The average transaction time is 4 seconds. Compare this with a few days for conventional banking systems!
Payment ecosystem. The user can basically give out their own currency for a quick and cheap transaction.
What are the benefits of Ripple?
- Ripple was originally developed as a daily payment system, so it is much faster than Bitcoin. As a result, transactions are much faster and cheaper.
- Ripple began its activities as an official organization, since its main task is banks. Thus, it is not subject to multiple regulatory checks, like many other cryptocurrencies.
- Ripple has the ability to exchange for any currency or valuable (for example, gold) with a single minimum commission.