What is all the Fuss about the Ripple Cryptocurrency?
2009 was the birth of the blockchain which has led to the emergence of many other cryptocurrencies over the years. Bitcoin is the first and most popular cryptocurrency, but for how long? Many cryptocurrencies are currently taking a stand and might probably over throne Bitcoin as King of cryptocurrencies, and one of those cryptocurrencies is Ripple.
So, what is Ripple?
Introduced in 2012, Ripple was created with the sole purpose of facilitating financial transactions on a global scale. Now, you might be thinking “isn’t that what are other cryptocurrencies are trying to do also?” Yes, that’s true! But Ripple is different from its alternative cryptocurrencies in the sense that it is connected to legitimate financial institutions like UBS, Santander, and Bank of America.
Don’t be confused, Ripple stands for both an open-source decentralised platform and the digital currency (XRP) that is used for transactions on the platform. Though it is still in its beta phase, the goal of the network is to give people the freedom of financial transactions without the need for financial institutions that might place restrictions or fees for exchanges.
Is Ripple Similar to Bitcoin?
This question might have crossed your mind, and the answer is yes, in many ways. But, how are they similar? The Ripple token XRP just like Bitcoin has a limited number of units and is based on complex mathematical formulae, which comes into play when they are being mined.
Another way both currencies are similar is that they can both be transferred from one account to another, or to put it in another way, they both act as a peer-to-peer system without having to go through a third party.
One last similarity between these two currencies is that like most cryptocurrencies, they both operate in a secure way so as to ensure that their coins cannot be forged in any way.
Is Ripple Competing with Bitcoin?
While many might see Ripple being in competition with Bitcoin, it actually stands as a complement to the cryptocurrency. The network does not just allow the seamless transfer of fiat currencies; it also includes transactions involving bitcoins. This way, Bitcoin owners can also tap into this flawless medium of financial transaction.
Cryptocurrencies are here to stay, and we see different currencies being introduced almost daily. But not all of them have been able to stand the test of time. Luckily Ripple is not one of those.
The core purpose of the Ripple network and the XRP token is to provide a channel of carrying out financial transactions without the stress or fees that come with most other financial institutions. While this is the same as most other cryptocurrencies, Ripple stands higher than most because it has found a way to still stay connected to traditional banks, and this has caused a bit of unrest.
Though the network has caught some flakes for being poached to huge banks, Ripple has found an innovative way of leading the banking world on a journey to the world of cryptocurrencies.