Ripple is a blockchain technology-based digital currency, but it has its own system which called Ripple Net. This coin is one of the currencies that target financial institutions such as banks and financial services companies. In addition to being a digital currency, Ripple is a system of payment between banks or financial services companies or between those companies and banks and each other. Thus, in addition to being a digital currency, it is an advanced banking system.
Ripple allows banks to exchange money between each other, whatever the currency is, in accordance with the laws governing financial transactions in each country, and also within each bank. The name Ripple refers to both the digital currency that is traded under the symbol (XRP) and the open source payment network through which the currency is transferred and converted.
Ripple is considered a categorical currency, as it fused three of its services into features of its RippleNet offering each to a certain category, and it is as follows: xCurrent, dedicated for banks and is like the first class. XRapid, a middle-class, for payment institutions or financial service providers. XVia is for small and medium enterprises (SMEs).
Features of Ripple
Among the services provided by the system of Ripple currency is the speed of money transfer, as the transfer may take only 3 to 5 seconds, and this is accompanied by transparency and credibility, where the transfer takes effect on the Ripple network, in addition to the transfer fees that could be less than a cent. Currently, Ripple is the third largest currency in the cryptocurrency market, according to the Cryptlydian Market Cap page, right behind Bitcoin (BTC) and Ethereum (ETH) respectively. Offered volume in the market amount to 43.9 billion ripples, at a price of $ 0.176, or a total market value of $ 7.75 billion.
The Creation of Ripple (XRP)
In 2004, the British software developer Ryan Fugger founded the Ripple Payment Protocol as a decentralized payment system, and in 2005 RipplePay.com was launched for online payment services, but in a safer way. In 2011 Jed McCaleb began developing a proof-of-stake cryptocurrency, then in 2012 Jed started with Chris Larsen to present the idea to Ryan Foger. At the end of 2012, Jed and Chris founded OpenCoin Inc or Ripple Labs later. Then, in 2013, Open Queen Inc. produced this digital currency, and put it on a number of large investors and some international companies, and was initially dependent on a very central system that targets the service of financial services companies.
Ripple depends, as mentioned before, on the blockchain network on which Bitcoin depends, but the difference is that Ripple aims to play the role of medium between banks, individuals and financial services companies.
Many banks depend on Ripple currency technology for money transfers among each other or financial services companies. Among these banks are First Abu Dhabi Bank in the UAE and the Al-Rajhi Bank in Saudi Arabia, in addition to UBS. Ripple technology is widely used in several countries such as India, China, the United States, Mexico, Thailand, and others.
Ripple has also used among remarkable money transfer institutions such as Western Union and MoneyGram, which recently announced that it has received more than $ 11 million in investments from Ripple.
According to the Ripple Currency website, the global payment network Ripple has more than 300 customers in more than 40 countries and six continents. It works with regulators and central governments, not against them, to improve the way in which money moves in the world, so that the transfer of money becomes like date transfer.
Is the Ripple Being Mined?
The company that created the Ripple coin created 100 billion of the Ripple coin, half of which was put into circulation while the company then kept the other half. Consequently, there is no room for currency mining and there is no way to obtain it except by purchasing it from trading platforms, so it depends on proof of stake system not proof of work.
How Ripple Could be Bought?
Ripple currency traded with the (XRP) symbol can be purchased either with Bitcoin, through bank transfer, Ethereum, Ethereum Classic, Euro or with US Dollar.
Taking into account that the number of Ripples offered on trading platforms is 43.9 billion Ripples, meaning that there are 56.065 billion Ripples in the hands of the founders, which is a defect in the currency where owners can control the price (also eliminates decentralization), but the cheap price of the ripple (currently at $ 0.176) makes it an advantage.
Finally, we will not be able to monitor everything about the advantages and disadvantages of the currency in a few lines. Rather, we only shed light on the most important points concerning those who want to know more about Ripple currency.