The creator of ripple coin, Jed McCaleb, is definitely on cloud-nine after this crypto currency became a sensational hit in the market. Built on the basic concept of a blockchain and Bitcoin, the company convinces its users that the ripple technology focuses on removing all the drawbacks of a bitcoin technology.
One major difference between Bitcoin and Ripple coin is the fact that the ripple company has a source code that cannot be accessed or edited by an investor or any outsider, whereas Bitcoin technology offers exactly opposite of this.
The Ripple’s native currency is known to be XRP (ripples). XRP has been listed by the market, in the Top 5 Cryptocurrencies for many years.
What is ripple coin?
Ripple is the name of a cryptocurrency and it is often represented as XRP (ripples). It is also the name of an open and distributed payment network through which the cryptocurrency is accessed or transferred.
Ripple technology makes use of the distributed ledger technology. Distributed ledger technology is composed of shared and synced digital information distributed across different sites.
Goals of the Ripple system
The ripple system mainly aims at the destruction of any barriers that users are subjected to when it comes to online currency transfers. The barriers can be explained in detail one by one.
Transaction charges. Many online payment networks impose transaction fees whenever the user has to access his/her money. This method has been labelled as inappropriate by the invention of new technologies such as that of Ripple. The ripple technology has eliminated these kinds of charges and hence successfully increased its customer base.
Transaction delay. Another burden and a major issue is the delay in the transaction processing. The networks declare a certain amount of time for the processing to happen. This causes inefficiency of the work and hence the users will not be satisfied. Fortunately, the ripple system has little to no delays regarding the transaction process.
Currency exchange charges. Merchants should be provided with an option to participate in international transfer of funds with no hesitation. But sadly, people are charged for the exchange from international currency to the respective native currency. The ripple system has created significant factors that tackle such problematic situations with ease.
How it works
The ripple system has accommodated a system which has a similarity to the blockchain system. It permits the movement of the crypto currency (ripple coin) instantly and directly and thus there will not be any potent issues of transfer processing delays and remittance fee charges are also dropped to nil. All of this has been achieved by accommodating the technology of distributed ledger. A major advantage of this system would definitely be the ability of working across nations and the size of the payment can never be an issue.
Similar to the blockchain system using Bitcoin as its cryptocurrency, the ripple system makes use of XRP. The currency of XRP is growing and is now the third largest market capitalisation behind Bitcoin and Ethereum.
Significant people behind Ripple coin
The company behind this major development is OpenCoin. OpenCoin was co-founded by CEO Chris Larsen and CTO Jed McCaleb. McCaleb has an excellent knowledge about the digital currency system as he has a background with Mt. Gox, which controls most of the Bitcoin trades.
Chris Larsen also has his shares of great experience in the cryptography. He was the co-founder and leader of a finance handling company, E-LOAN. Other influential leaders of the company also have a background in Bitcoin trading as well.
Worth of a Ripple coin
The ripple coin has had its share of huge growth. The XRP is now the third most valued currency in the field of cryptography. The founders at the company believe that the XRP is definitely going to be the next Bitcoin in the market.
In a thirty day period, the value of XRP has increased to a huge jump in the early months of this year, 2017. Precisely saying, the value increased by a 1000%. But Bitcoin has grown much better when compared to ripple coin. Better yet, XRP is considered to outgrow Bitcoin by many influential people and entities.
The company aims to eventually create 100 billion ripples in the coming years out of which half would be given up for circulation and the other half will be kept by the company.
Bitcoin vs. Ripple coin
In a lot of ways, bitcoin and ripple coin can be considered the same. Both of them have a digital currency that is used for transaction transfers and the like. Both are used for transfer cross-borders. But they do have their equal share of differences. Some would consider ripple coin to be bitcoin’s competitor. It should be since the XRP value has reached a sky high in such a limited time period. As stated earlier, the ripple system has eradicated almost all of the problems that the blockchain system could not. Because of this, the customer base at the ripple has increased and will soon be potent enough to beat bitcoin.
Even though many consider both as rivals, Bitcoin holds ripple as a compliment. In the light of this, Bitcoin even has a page for the bitcoin users that will help them to access ripple. The page is named “Ripple for bitcoiners”.
“Ripple will open up many more gateways for bitcoin users and easier ways to bridge bitcoin with the mainstream world of finance,” stated Stephen Thomas, a senior developer for the ripple system and a bitcoin advocate.
Bitcoiners are benefitted by the introduction of the ripple system in a lot of ways. Ripple remains independent and does not rely on the company for any sort of management that it requires. Hence it makes the network easier and efficient and faster to use.
Future of Ripple coin
It all started in San Francisco. The company OpenCoin lanched in San Francisco and since then, Ripple has become larger and larger and now there are offices in New York, London, Sydney and Luxembourg. The success of ripple was because of the investments large business entities made. And thus it increased its customer base.
Ripple has expanded its fund to a great level by combining its works with other firms globally. This is one of the major reasons why this project became a success. Ripple had partnerships with global firms and made some investments of its own.Many of the banks across the globe are using this technology.
A team of Japanese influential banks have started to create software that will accommodate the use of the technology well over the years. Almost 40% of the Japanese banks will be directly or indirectly using the ripple system by the coming years.
By the year of 2018, RBS and BAML will make use of the technology to create a connection for cross-border transfer of funds for commercial and retail users with the added benefit of speed in transactions and almost zero charges.
Ripple coin with only five years of experience has become a sensational success and is definitely going to match up to bitcoin. But with more precise moves and smoother operation, Ripple is set to go further than any other cryptocurrency in the market, without a doubt.