As the saying "a single drop into the ocean can create a ripple" goes, one can attribute the 'drop' to the emergence of digital money and the ensuing effect of it is the emergence of cryptocurrencies such as Ripple.
Created by Ripple Labs Inc., Ripple is a currency exchange, remittance network and a real-time money transfer system with its own digital currency called XRP.
Seen earlier as a copycat of Bitcoin, Ripple has gained reputation as a solid alternative that aims to expedite the procedure of cross-border payment transfers and improve payments system worldwide.
Classified as both a currency and a platform, Ripple has an open source protocol designed for cheap and quick transactions.
Ripple's XRP digital coin can be traded on the eToro online investment platform. Be sure to read our comprehensive test of eToro to know more about its features./
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History of Ripple
Ripple was founded in 2005 by Jed McCaleb, Arthur Britto and David Schwartz, as financial platform offering secured payments through a global network.
The Ripple Exchange debuted in 2013 and then followed by the introduction of the company's digital currency XRP.
Since then, Ripple's XRP has become the world's second largest cryptocurrency with a value of US$73 billion.
Things to Know About XRP
- XRP is considered as the world's only digital currency designed specifically to be used by payment providers and financial institution.
- XRP earns the title of the 'fastest digital asset' capable of operating 1,500 transactions per second round the clock all day long. Yes, it is faster than Bitcoin.
- XRP is one of the most secured digital currency. The XRP ledger records all XRP transactions is programmed with an open-source code closely analyzed by engineers and trusted validators.
- XRP provides easy and fast solutions for all cross-border payments thanks to Ripple's capability to move money efficiently and in real-time.
- XRP is easy to buy and sell. You can easily trade XRP through various exchanges and trading platform such as eToro.
No Blockchain, No Problem
Unlike Ethereum and Bitcoin, Ripple doesn't run on a blockchain. This fact may give others pause, because blockchain is an important element that verifies transactions. Ripple solves its blockchain shortcoming by developing its own patented technology: the RCPA or the Ripple Protocol Consensus Algorithm.
The operative word on this Ripple protocol is "Consensus". This means, every transaction is agreed upon, verified and considered okay before pushing through. It’s like having its own blockchain without having its own blockchain.
Simply said: XRP is considered as a distributed ledger and NOT as a blockchain. XRP requires no mining and vastly improves payment system worldwide.
Ripple in a Nutshell
- Ripple's cryptocurrency is the XRP.
- XRP's transaction is seen as quick and almost in real-time taking only seconds to confirm at minimal fees. The amount to pay for every transaction done on the Ripple network is just 0.0001 XRP.
- XRP's technology is ideal for use in digital payment
- Thousands of merchants and a growing number of banks are using the XRP payment system
- XRP has zero inflation since all coins / tokens are already existing.
- XRP has a big chance of becoming the cryptocurrency of the future if more banks decide to begin supporting it as a unifying bank currency to also eliminate repetitive currency exchange fees.
- XRP is easily convertible to different currencies without having to use the US $ as a currency exchange mediator.
Banks that Use Ripple
Here are the leading banks that support Ripple:
- Union Credit
- Axis Bank
- Yes Bank
Currently, other banks are starting to consider supporting Ripple. As of this writing, more than 4,500 merchants accept the XRP digital currency as payment.
Currently, there are about 50 billion XRP coins in circulation in the market while having a total supply of 100 billion XRP tokens.
An in-built smart contract protocol controls the release of XRP tokens. Ripple is planning on releasing 1 billion XRP every month into the market.
Any unbought or unused XRP released each month will go directly to an escrow account. This system eradicates the probability of oversupply of XRP tokens.
Remember: Ripple is the company that created XRP coins. If you buy XRP, it doesn’t mean buying on Ripple stocks as Ripple is not a publicly traded company.
Example of Using Ripple's XRP
What makes Ripple different from Bitcoin is the speed on how it concludes its transactions.
As the Ripple payment system uses its own XRP coins on their network, an example of its use would look like this:
Mark has a client from another country who will pay him $100. By using the Ripple payment system, the client can easily transfer the $100 into its equivalent of XRP tokens into Mark's account in the Ripple network without taking days to process and eliminating transfer and conversion charges.
Upon verification of the transaction through Ripple's own RCPA, Mark will instantly receive his XRP coins and have the option to convert it to any currency of his choice or retain it as XRP.
Simply say: Ripple has a faster verification and transfer process than Bitcoin. XRP is ideal for remittance, payment settlement and asset exchange types of financial transactions.
How to Trade Ripple XRP on eToro?
- On your eToro dashboard, click "Discover".
- Select “Crypto”.
- Scroll down to look for “XRP”.
- Click “Buy” and set the amount you want to invest.
- "Click “Open Trade”.
There is no official Ripple wallet for XRP yet, but there are good wallet options for you to choose from:
- Toast Wallet
- Ledger Nano Hardware Wallet
- eToro Wallet
How to Open an XRP Wallet with eToro?
In order to use eToro's XRP wallet service, you will need to transfer an XRP position via the eToro trading platform under your name to the crypto wallet under the same account. The good news is that you won't incur any fees opening an XRP wallet and also transferring the XRP crypto to this wallet.
XRP opened with a value of $0.005 when it was launched and increased to $0.40 in 2017. Towards the end of 2017, it crossed the $1.00 mark and peaked at a high of $2.30.
Interested now to trade Ripple? Get started here.
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