Despite the fact that ripple is a cryptocurrency which is based on a chain of blocks, you may encounter opinions that the platform does not support the ideas of decentralization and independence which are considered to be the foundations of the cryptocurrency technology. It’s true – ripple provides services for some important subjects and incorporates elements of central system control. However, it’s also worth mentioning that it’s a project which broke through to the world of big business, has real technological application and brings a large profit for its creators and investors alike.
Ripple XRP cryptocurrency history
The operator of the ripple system (a company under the same name) was created in 2004 by Canadian Ryan Fugger. In those times, it was called RipplePay and it was just a local network used to transfer funds via the Internet. The XRP coin didn’t exist yet.
The platform began to offer services in 2005 as a system for fast transactions, based on the I owe you model (IOU). It created financial liabilities between trusted parties. In the event of a transaction between two strangers, it had to be confirmed by other users who trusted each other.
Ripple transactions were performed instantly, because there were no asset transfers in the network – the system only registered obligations between clients. The XRP crypto is based on a similar principle.
Creating the ripple coin
The RipplePay platform was active until 2012, when the digital coin XRP had been created, based on blockchain technology. In the same year, OpenCoin was established – they created the Ripple Transaction Protocol RTXP and launched the XRP cryptocurrency.
One year later, OpenCoin was changed into RippleLabs. Huge sponsors were invited to support the project. They included such companies as:
- Google Ventures;
- Vast Ventures;
- Pantera Capital;
- Bitcoin Opportunity Fund.
Ryan Fugger’s company began to create projects for corporations during this time. They cooperated with the German bank Fidor and a large operator of payment networks – Earthport.
In October 2015, the company changed its name to Ripple. A year later, its clients included even many Japanese banks (over 80% of such institutions). During spring 2018, Santander Group launched an application for mobile payments One Pay FX, based on the chain of blocks and solutions of Ripple xCurrent. In the same year, the platform also entered India’s finance market.
The ripple platform and technology
The way in which ripple uses blockchains is one of the more innovative methods of working with this technology. Even though it is centralized, it can still compete with such transfer giants as Visa or the SWIFT system.
The XRP Ripple network is outstanding in terms of transmission speed, scalability and capacity. Ripple can reach up to 1,500–50,000 transactions per second. Each transfer gets confirmed in the system within 5 seconds, no matter the distance between the two parties.
Ripple technology allows you to transfer fiat currencies, cryptocurrencies and tokenized items. Even though the network has incredible parameters, it doesn’t come with a big cost – about 0.00001 XRP per transaction.
Ripple XRP uses the node connection mechanism which is also common in other cryptocurrency networks. However, in this case, new coins do not appear as a result of the work of computing servers, as in systems based on the Proof of Work algorithm. How does ripple mining work, then? Within the ripple network, the transaction book gets automatically updated in XRP wallets. This process is connected to the distribution of new coins. This solution has some advantages – a high scalability of the system, great speed and low costs.
The creators of XRP crypto designed the system to produce a maximum of 100 billion coins. There are currently about 45 billion ripple coins in use and 50 billion blocked ones. They get released based on the current demand. The Ripple Company has 7 billion coins.
How to fill your XRP wallet? Where do you buy XRP ripple?
XRP currently (June 2021) ranks 7th in the list of cryptocurrencies with the largest capitalization. According to coinmarketcap.com, its estimated value is currently 23 billion 885 million 545 thousand USD. The ripple XRP coin is valued at about 0.5 USD per unit.
The ripple cryptocurrency market can be found in over 130 exchanges. These platforms allow you to trade XRP for:
- tether (USDT);
- the American dollar (USD);
- euro (EUR);
- bitcoin (BTC);
- Ethereum (ETH).
You can also trade ripple XRP cryptocurrency for fiat currencies on platforms such as Binance or BitBay.
Which ripple wallet should you use?
If you want to store your ripple XRP, you can use the software Exodus multiwallet. This program comes in 2 versions – for computers and for mobile devices. You can install Exodus on Windows, MacOS, Linux, iOS and Android.
You can also use Trust Wallet – a multiwallet for smartphones and tablets which also works with XRP ripple. The app works on both iOS and Android systems.
Another option is a hardware ripple wallet. The most popular devices are the Trezor or Ledger products. XRP works on Trezor One and Model T, as well as Ledger’s Nano S and Nano X.We’ve covered all the basic information about the XRP cryptocurrency. It’s a well known coin, but it still may be overwhelming for beginners. Based on everything you’ve learned here, you can decide for yourself if this cryptocurrency interests you or not.