- Ripple works on an open-source and peer-to-peer decentralized platform that helps in easily transferring various forms of fiat money, be it pound, dollars or rupees, or cryptocurrencies, like Ether or Bitcoin.
- Its services included being a medium of exchange, international payment settlement and remittance system.
- Ripple protocol was developed primarily for ensuring secure, instant and almost free global money operations irrespective of amount without any chargebacks.
More importantly, Ripple network has its native cryptocurrency XRP, which has been developed to operate and serve various utilities on the Ripple network. XRP was launched in 2012 only with 100 billion tokens, of which 80 billion tokens went to the company and 20 billion to its co-founders.
Both XRP and Ripple network work in tandem to enable exchanges of various currencies, including fiat money and popular cryptocurrencies.
A look at how XRP operates on the Ripple network and its advantages as a cryptocurrency:
- XRP, is premined and functions as an intermediate mechanism of exchange between two currencies or networks.
- XRP is created by a less complicated method of mining in comparison to Bitcoin.
- XRP facilitates quick conversion between different currencies on the Ripple network for its various customers from major banks to financial services.
- The Ripple network operates neither on a proof-of-work (PoW) mechanism nor a proof-of-stake (PoS) mechanism.
- Instead, it uses a distributed consensus mechanism via a group of bank-owned servers to confirm transactions and account balances on the network.
- This consensus works towards improving the integrity of the system by preventing double-spending.
- Ripple transactions are very energy-efficient and are a lot cheaper than Bitcoin.
- Transaction cost on Ripple is as low as 0.00001 XRP for cross-border payments as against the huge fees charged by banks.
- Transactions with XRP are done within seconds as compared to many minutes taken by Bitcoin.
- XRP plays the role of a bridge currency which makes the exchange of one currency into another easier, whether it’s fiat or cryptocurrency.
- As opposed to Bitcoin’s limited total stock of 21 million coins, Ripple’s smart contract control releases a maximum of 1 billion XRP tokens every month. This makes it readily available for users to buy.
The Ripple ( XRP) cryptocurrency is beneficial to buy and invest in for these reasons besides being ranked 8th among all cryptos.
Crypto exchange ZebPay offers secure and convenient ways of buying, sending and trading XRP tokens.
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