Cryptocurrency has been taking the world by storm in the last year; with more names appearing every few days; it can be a challenge to keep up. The latest name to appear is Ripple, but what is it?
Unlike Bitcoin, which was meant to be a simple payment device, Ripple is both a platform and a currency. The platform is designed to facilitate cheap, fast, and easy transactions. Their website, RippleNet, is a network of money service and payment provider businesses that use software developed by Ripple to send money worldwide.
What Is Ripple?
Ripple is unique because of how it works – allowing transactions from multiple sources in different currencies; the Ripple platform looks for the cheapest, shortest and easier combination to make the transaction. Even better, Ripple charges an absolutely minuscule commission for internal transactions of just $0.00001 – this is simply to prevent DDoS attacks on the website; otherwise, it would be totally free to use.
Ripple has its currency on the platform called XRP. This currency is more of a constant way to represent value rather than a currency in itself. XRP is used to represent the transfer of value on the Ripple network. It could be other Cryptocurrencies or traditional currency exchanges – Ripple uses XRP to simplify everything.
Choosing to invest in Ripple and other Cryptocurrencies is a big decision, and therefore having a platform that will make this easier is always a good thing. For investors, choosing how they implement their investment and what they invest in is always a good thing. Many people like to have a diverse investment portfolio, and the introduction of Ripple has helped to make this happen.
Ripple itself isn’t a new platform by any means! A working prototype of the Ripple protocol was created in 2004. Still, it wasn’t until 2013 that when world-leading investors were invited to invest in Ripple Labs, the platform started.
Why Is Ripple So Important?
Simply put, Ripple makes everything more simple. The super-fast international transaction speed of just 4 seconds, compared to Bitcoin’s average of an hour or traditional banking’s 2-5 days, makes Ripple an absolute game-changer. The low commission rates for transactions on the site make it a great choice for converting currency, particularly currencies that can’t be converted directly in a traditional exchange. Each user can also create their currency, making transactions much simpler and allowing for fuss-free trading.
Whether it is going to the supermarket or buying Cryptocurrency, customers like a smooth and efficient service; Ripple was originally designed as a simplified payment system which makes it a lot more power-safe than Bitcoin. This is how the transactions can be so much quicker and cheaper than alternative payment or currency exchange methods.
The other reason that Ripple is so innovative is that XRP can be exchanged for any currency or value with a flat-rate nominal commission charge across the entire platform, regardless of what you’re exchanging. This means that you could exchange currency for gold or gold for vintage cameras. If you set up your currency, you could exchange anything, meaning the possibilities are endless.
Ripple’s main focus is to be used by banks. With this in mind, they set up as an official organization, meaning that they’re not subject to multiple regulation checks like so many other Cryptocurrencies.
With so many banks already supporting Ripple, its popularity is likely to increase. So, if you are looking into Cryptocurrency as an investment idea, make sure that Ripple is on your list of things to check out.