From the title you might have guessed that on what topic we are going to throw light upon. The solution to money transfers across the borders easy, fast and secure –the Ripple.
Here are some facts about Ripple that you might not know:
Normally, the name that rolls out of the tongue for its cryptocurrency is ‘Ripple’. Certainly, it seems to be an attractive name. But actually, Ripple is just a short name for the company ‘RippleLabs’ previously named Opencoin before 2013. The token used by the company to transfer value across the Ripple network is XRP. To understand XRP, you can presume it as a joker in the deck of cards that can be any other card. If you want to trade-off Dollars to Euros, it can be Dollar with Dollars and Euro with Euros to minimize the commission.
The 2 masterminds who founded Ripple Labs are:
Chris Larsen who is an angel investor, business executive and a privacy activist is currently considered the richest person in cryptocurrency.
Jed McCalebis an established programmer and entrepreneur, co-founder of several crypto-startups- Ripple, Stellar, edonkey, Overnet as well as cryptocurrency exchange Mt. Gox, which at its prime was handling over 70% of all Bitcoin transactions worldwide.
The real story started in 2013, when Jed McCaleb invited a group of world rank investors to invest in Ripple Labs. But actually, the protocol as a working prototype, RipplePay, was fabricated erstwhile in 2004, before the invention of the Blockchain.
There is a very interesting fact related to it. The transaction cost on Ripple is as low as $0.00001. after every transaction, the amount $0.00001 ‘perishes’ from the platform and can not be restored. So, with every transaction the world becomes $0.00001 poorer. The reason behind designing that way was to avoid spammer attack.
100 billion XRP tokens have been released. But only 40% of them are in circulation and 60% of them are still owned by the company. It is undoubtedly bad and a Big negative that can be pointed out by opponents.
But contrarily, in case of any fluctuations or catastrophe in the market, Ripple can stabilize it as well.
it is their flagship product. It uses RippleNet, the Ripple Blockchain but does not uses XRP. It enables the banks to efficiently move money across the borders, thus, saving their money and time without any perils or changes to their functioning.
It is the only Ripple product that uses XRP. Banks like it because it helps them to free up eminence of money they are stuck with and helps improve liquidity when trading in emerging markets but also dislike it due to introduction of unknown factors- such as volatility of XRP.
It is similar to xCurrent but permits corporation and payment providers (not banks) to send money through banks.
In case of most of the cryptocurrencies, a token is always mandatory to acquire their services. But in case of Ripple, the matter is a bit different. Financial institutions can get access to instant, reliable and cost-effective customer payment capabilities by just becoming a part of it. XRP can further help them reduce their costs while also engrossing new markets.
Ripple has a unique payment entanglement. This allows the user to issue his own currency for fast and cheap transaction. For example, one can create a currency to buy and see action figures between the collectors.
8.The dominance of Ripple
Ripple had a bewildering 36000% increase from the beginning of the year and had been the best performing cryptocurrency of 2017.It had a valuation higher of about $20 billion than combined that of uber, airbnb and slack. From 2012-2016, Ripple raised $93.6 million from Andreessen Horowitz, GV (Google ventures), and many more of the top VC firms in Silicon Valley. Ripple is everywhere online with victorious pilot programs, working 100+ financial institutions and even the Japanese government seems to be behind them.
9.Ripple can freeze your transaction!
This was seen when the founder of Ripple Labs , Jed McCaleb, himself got his transactions reversed while he was trying to sell more than a million dollars worth of Ripple. There are rumours of Jed having split the contract. But still the very possibility of freezing a transaction is against basic cryptocurrency principles.
10.Ripple without Blockchain
A cryptocurrency without Blockchain may sound strange but that’s true in case of Ripple. Unlike Bitcoin and Ethereum, Ripple doesn’t have a Blockchain. Ripple instead has its own patented technology: the Ripple protocol consensus algorithm (RPCA). Only if everyone agrees you can take a decision. But if a single among all doesn’t agrees, all will ascertain what is his problem and nothing will happen till he agrees.
Early once, Ripple had its own website the RippleTrade.com that acted as digital wallet for the users to buy, sell, trade and store XRP. However, in the early 2016, Ripple decided to terminate this service so as to focus on its fundamental work with global financial institutions. A third-party wallet provider called GateHub was hired to migrate accounts away from RippleTrade.
12.You can’t buy Ripple directly on Binance
There are several different exchanges to buy Ripple. But you can not buy Ripple directly on Binance. For it you will have to buy another coin like Bitcoin or Ethereum first and transfer those to Binance. You can buy Ripple directly on Coinbase.
At the end of 2017, Ripple Labs put 55 billion XRP into escrow, setting up 55 separate escrow contracts. These contracts are being expired at the rate of 1 every month freeing up as much as 1 billion XRP into the market. it will get back in escrow, with a new expiration date if ripple labs doesn’t use all the monthly supply. That will push the ultimate end of all the escrow arrangements back by an additional month. In the current situation, the escrow may take 15 years or more to finish, thus, discarding tokens onto the market in a way that might cause collisions of the value.
14.Banks that support Ripple
Rather than trying to disrupt banking system and refuse from using traditional money, Ripple tries to make people’s life easier using the prerogatives that are given to us by Blockchain. A list of banks that support Ripple is:
Ripple coins (XRP) have a few important differences from Bitcoin.
- Ripple is based on private, centralized blockchain while Bitcoin is based on public, decentralized blockchain.
- While Bitcoin can perform maximum 7 transactions a second, Ripple can handle 100.
- Ripple is not mineable. Founders have issued all the tokens that are possible to issue, and no more can be added whereas Bitcoin is mineable.