With a 35,000 percent increase in its value in year 2017 and a market cap of more than 118 billion USD, Ripple has become much of a debated matter among the investors and analysts alike. But, do you know what Ripple is about? It is like any of the cryptocurrencies? Why has been on a buzz lately? Continue reading to get the answers to these questions.
What Is Ripple?
Ripple is basically a payment solution service, which was founded by Jed McCaleb and Chris Larsen. Their Ripple Transaction Protocol (RTXP) comprises of cryptocurrency XRP. Ripple wallet claims to offer affordable, reliable and faster transaction solutions for the financial institutions out there. The company has created a hundred billion XRPs and it presently holds more than 60 percent of the coins. The current plan is to release a minimum of a billion coins a month.
Difference Between Bitcoin and Ripple
Both Ripple and Bitcoin are cryptocurrencies that make use of the blockchain technology. However, there is a basic difference between these two: unlike the Bitcoin, Ripple just cannot be mined. There is no concept as Ripple mining, and it is just fixed to the Ripple network only.
Both Ripple and Bitcoin make use of validatory nodes for validatory ledgers. Bitcoin has around 10,000 confided nodes, whereas Ripple has just five. Nevertheless, the company intends to add 11 more over the period of next 18 months. Ripple itself controls these five validatory nodes. XRP has been under criticism as it lacks independently reliable validators. The XRP ledger is accessible to all, so anyone can download it and serve as a validator. Several companies out there are running their own nodes using the Ripple network.
Reasons For Recent Ripple’s Price Hike
The recent hike in the price of the XRP has a lot to do with the currency’s anticipated use by the financial institutions and investment by the investors. Ripple has been quite successful in gaining banks as clientele for its other products. The Ripple’s xCurrent is accepted by most of the financial institutions as it offers quick corrections and real-time communication, thus reducing any time lags in banking transactions. The company intends to introduce another product called as xRapid that integrates XRP. This new product appears to be a great opportunity to get banks to start using the XRP. Investors see the prospects of the currency as a financial vehicle that would be used by banks all around the globe.
Ripple or the XRP happens to be the rising cryptocurrency. It is different from the leading digital currency – Bitcoin as its supply is controlled by the founders.