Ripple Explained

Ripple is a for-profit company that serves the banking system. Ripple Labs is the company behind XRP, which is their cryptocurrency. The company aims at banks and payment providers to send money Internationally, quickly, and cheaply. People use Swift to send or receive money globally. But it is slow and takes a lot of time.

Ripple Labs

Ripple Labs have created Ripple Net, the network behind the xCurrent product. xCurrent is a decentralized system that uses a consensus model called a Unique Node List. This system aims to fix the slow bank issue faced by people around the globe. The system is too powerful and even includes fraud detection. They have fixed these problems so well that companies like American Express and 50 other big banks have partnered with Ripple Labs by now.

Ripple Lab’s cryptocurrency follows the ticker XRP.

Advantages of Ripple(XRP)

1. Transactions are confirmed in less than 5 seconds.

2. Cost for each transaction is as low as $0.0002.

3. The blockchain can handle 1500 transactions per second.

PoW or PoS?

While most cryptos either use Proof of Work or Proof of Stake to accept or reject transactions, Ripple uses a method called Unique Node List, but it’s centralized. In Unique Node List, ripple labs set up a list of a bunch of people they trust. And then the majority decides what gets added to the blockchain or not. They don’t use work or a staking feature but the majority rule from their list of trusted sources.

Should You Invest?

Ripple’s current price is $0.97. And for a few hundred dollars you can get a lot of coins in your portfolio. The idea behind Ripple is simple, to solve real-life problems. And this makes it a good bet to invest in. Its market cap is around $50 billion and is expected to rise in the future. The company has also partnered with companies like American Express. The company is also moving towards creating private ledgers based on XRP ledgers.

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