Meaning, Benefits and Potentials of Ripple(XRP) as a currency and Payment platform
WHAT IS A RIPPLE?
Ripple (XRP)does not only mean the currency as many people think. Ripple is both a currency and a payment platform . It is both a digital currency and a payment platform within which the currency is transferred.
As an open payment network, it is designed to get rid of credit cards, banks, paypal and other financial institutions that restrict the free access in transaction and often charge fees in currency exchanges. Ripple also ensure quick and cheap transaction process.
The company behind Ripple is called Opencoin. According to the company, the currency/platform aims at addressing the need for easy flow of money, free from restrictions, charges and delay.
The fundamental difference between Bitcoin and Ripple worthy of note at this juncture is that while bitcoin was not invented with the target of it being a simple payment platform, being a simple payment platform was the main reason behind the invention of Ripple.
What is XRP?
It is a token for representing the transfer of value across the Ripple network.
The origin of Ripple can be traced the prototype designed in 2004 which served as the working prototype for the invention of Ripple. However the main story of Ripple started in 2013 when Jeb Mccaleb the creator of EDONKEY network, invited group of world bank investors to invest in Ripple Lab.
NOTABLE FEATURES OF RIPPLE
- Unlike every other cryptocurrency like bitcoin, Ethereum, Neo etc that uses blockchain to secure and verify transactions, Ripples does not use blockchain. It however utilizes its own technology called Ripples Protocol Consensus Algorithm (RPCA) .
- Ripple offers two powerful products, namely; xcurrent and xrapid.
- Ripple is highly volatile just like other cryptocurrencies. Thus, bankls do not need to hold XRP. Xrapid particularly does not work by holding but by buying and selling within the shortest period of time.
- Ripple is both a currency and payment platform. The platform is simply an open platform designed to aid quick and cheap transaction and currency exchange.
Ripple specifically has personal digital asset called XRP. However any user of the network can use Ripplenet to create his own. Ripple inc. which is a company behind Ripple is a tech company aimed at offering efficient solution and platform to financial institutions for sending money globally.
WHAT IS THE MAIN BENEFIT AND OPPORTUNITY RIPPLE OFFERS?
Sending money globally has been a very difficult and challenging task. The desire to get rid of the delay and high charges involved in sending money globally led to the invention of Ripple as a payment platform.
Ripple has developed a system that aims to work with the current financial system. This system is based on internet protocols that permit international and local payment of any currency and without third party involvement. It should be pointed out that Ripple was not developed to displace the Central bank or other financial institutions but designed as a platform to be adopted by the central Bank and other financial institution to ensure efficient and quick money transfer globally and locally free from charges and delay.
- Ripple is both a currency and a platform
- The currenct CEO is Brad Garlinghousse and the current chairman is Chris Larsen.
- Ripple and XRP mean the same thing.
- Ripple inc. is the tech company behind Ripple.