Any cryptocoin, created after bitcoin, is its alternative, but can the ripple coin be considered this way? The idea of virtual money itself is not new, but the very essence of the cryptocurrency, which is the use of encryption algorithms, anonymity and full or partial decentralization, has become a new stage in the development of the digital economy. Ripple has a number of significant differences from Bitcoin, sets other goals for itself, and its creators have swung to be the world's leading cryptocurrency.
Table of content:
- Some facts from XPR history and its benefits
- Consensus, unusual blockchain and no mining
- The best ways to store Ripple
History of the creation and the idea of Ripple
The creators of Ripple Arthur Britto, David Schwartz and Ryan Fugger presented their updated project in 2012. There is a need to mention at once that the company Ripple did not plan to issue a cryptocurrency for fun or to conduct experiments. From the very beginning, everything was very serious. Ripple even had a very real predecessor. The payment protocol Ripple Play appeared long before Bitcoin. Ryan Fugger has long been thinking of the idea to create the own money and in 2005 the developer offered such a financial service. Customers of Ripple Play could make payments between themselves via the Internet.
XRP from the start was released as a complete alternative to BTC and ETH. Moreover, the developers have set an ambitious goal to offer something that replaces the existing banking system. Why Ripple, according to the idea of the authors, can become more successful and effective tools for banks, large companies, exchanges and payment systems? Owners of Ripple are sure that it will be able to displace even such a powerful payment system as SWIFT in the foreseeable future! These plans are really ambitious and can not help attracting the attention of financiers and the world community.
Speed of translations with the help of the blockchain will increase
Instant payments are available instead of the standard 3-5 banking days.
Expenses for money transfers will decrease significantly
According to statistics, the average annual commission of banks is 1.5 trillion USD.
Coordinated operation of the system will help avoid canceling payments
Many organizations lose profits because of the transactions cancels and technical failures.
Bright prospects of Ripple are confirmed not only by the system advantages, but also by real interest to the project from the large Internet platforms, payment systems, banks and corporations, for example, Ali Express, BMO Financial Group, WesternUnion and many others.
Consensus and other features of Ripple coin
Now we come to the question of why XRP is not considered as an altcoin at all. Traditional blockchain, which is the basis of the cryptocurrency, has got another principle of work. The consensus of the participants in the system is used as its basis. What does it mean? Imagine that you need to send money to your cousin who lives in Australia. Your Ripple partner in this region, for example in Sydney, gives money to a relative. The one who paid the transfer receives a refund from third parties, and this can be both ripples and fiat money. In the Ripple system, the role of all the participants, that have been mentioned, is performed by the server nodes.
So, Ripple is based on the registry, which has the form of a distributed database. In this database information about the participants of the system and their transactions is stored. The Ripple Protocol consensus algorithm manages this scheme. Within a minute, the database update occurs dozens of times, and at the time of each subsequent update, the current Last Close Ledger (LCL) is formed. The exit to the to external payment systems, for example, exchanges, exchangers, online stores, is made through gateways. Many private webs work in a similar way. As for the money, transferred from the bank cards, these transactions also pass through these gateways, while the rate always remains the most profitable.
What about mining of Ripple coin? Mining with graphic chips, processors and even ASICs in the case of XPR is impossible. There is no such thing at all for ordinary users, since coins are usually purchased by all who want to make payments with their use. The company issued 100 billion ripples at the very beginning, and still owns 65% of this volume. For the market value to be stable, the amount of the cryptocurrency will not increase. There is even such a function as “XPR burning”, i.e. with each transfer a sum of 0.0001 USD is paid, but it is not given to miners or developers, but is canceled. Thus, the system is protected from transactional spam, and the coin value remains stable.
Ways to store Ripple
Exchange services and crypto-exchanges
Have you decided to purchase Ripple for quick and convenient payments with your business partners, buying goods and paying for services? You will have to store coins somewhere. XPR holders use wallets on the exchangers, but this is not the most reliable way, especially for large amounts. An alternative will be large platforms such as Kraken and Poloniex. In addition to storage, you can also actively participate in trades, change ripples to other currencies, etc. As for your personality verification, transactions up to 2,000 USD on Poloniex can be made without it.
Gatehub is ideal for long-term storage. This service is considered an official one in some ways for XPR. With Gatehub you can send and receive cryptocurrency. The name, address of the wallet and the user’s ID on the Ripple system are used for making transactions. To be the service participant you need:
- Register on the site
- Put keys in a safe place
- Confirm email and go to wallet
A very important moment: your passport scan will be required!
Rippex is a program that is installed on a PC, i.e. it is a desktop option. There are software versions for various operating systems. If you cannot store keys on your hard drive, you are able to transfer them on the remote store at any time. The source code for the wallet is on GitHub. It is completely open and can be freely used by developers.
Hardware wallets from the very first day of its existence are considered the most reliable and safe storages for cryptocurrency. The owners of Ripple eagerly awaited the appearance of such a device. In 2017, Ledger Nano S and Ledger Blue shared their plans for the development of a device supporting Ripple coin along with other cryptocurrencies. Now the gadgets are available.