What is Ripple?
In this article, I will give you a detailed review of XRP. What is XRP, for what purposes is it produced?
We will talk about the advantages and disadvantages compared to other platforms.
Ripple is the payment protocol used to create a new layer of security to shorten the time of sending and receiving money.
Ripple is a global payment network. Wherever you are in the world, it allows any currency to be sent in a very short time and with a low transaction fee. The Ripple platform set out to compete with platforms such as SWIFT and Western Union.
Let’s give an example; when your friend from Brazil wants to send you a bank transfer in BRL from Brazil to Turkey however, BRL / TRY is not a common payment method. You had to convert BRL to USD first, Then you would have to ship in USD / TRY. While doing all these, high transaction fees and tiring processes are encountered. Someone using Ripple could easily convert BRL to XRP. then cheap transaction fee would be charged, And the bank or the person using the Ripple wallet in Turkey XRP can translate easily to TRY. As a result, Ripple allows a currency to be converted to another currency easily and quickly.
For now, banks are not in a hurry to use this method, but this method is considered to be very convenient in the future. Banks using the Ripple platform are more advantageous than those who do not.
With Ripple, people don’t have to pay high transaction fees, and most importantly, they don’t have to wait days in international money transfers. As an example, we can compare Ripple with e-mail; Why can’t we spend money when we can send the email to the other party in seconds?
Ripple’s basic principle is to make international money transfers happen at high speed.
How many XRP are there?
Ripple owns 61 billion of 100 billion XRP tokens. 55 billion XRP is locked to gain investor trust. These 1 billion smart lockers will be released every month in 55 months, one for use. The new XRPs will be released only through crypto exchanges and corporate companies and will be made for sale through OTC, ie over-the-counter markets. This is a strange applied to keep the XRP price unaffected.
This level of operational transparency is sufficient to believe in questionable investors that Ripple has a long-term vision and therefore avoids depreciating XRP.
What are the benefits of Ripple?
Ripple’s main advantage is that it can work directly with banks.
The platform is extremely fast. transactions occur in less than 5 seconds. In other words, buyers or sellers can perform their transactions very quickly and easily by using Ripple in their daily work.
The difference from Bitcoin; Ripple can be scaled continuously. Because there are more than a thousand transactions on a regular basis. There have been times when Ripple performed more transactions than Visa, even those transactions exceeded 50,000 per second.
Which banks support Ripple?
Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD and UBS.
What is Ripple Protocol Consensus Algorithm (RPCA)?
Although Bitcoin and Ethereum are a blockchain, Ripple’s transactions are not written on a blockchain. A cryptocurrency that wasn’t built on a blockchain was strange to us all at first. If there is no blockchain, how are transactions confirmed? How to make sure everything is all right?
Unlike blockchain systems, Ripple has its own patented system, Ripple Protocol Consensus Algorithm
What is RippleNet?
RippleNet provides international money sending and receiving. Many banks and corporate companies use this system developed by Ripple.
Let’s give a simple example that will explain RippleNet’s maturity to your work.
Charles has a box of unopened chocolate, he also wants to go to a football game to play on the weekend, while Tom has a ticket for a football game to play on the weekend. he says he cannot go to a football game because he does not have time. Since Charles and Tom live in different cities, they will not be able to purchase this transaction using traditional methods. That’s why RippleNet was developed, and Tom and Charles were able to comfortably carry out their transactions with no symbolic transaction fee of $ 0.0000001, and they both got what they wanted.
What are the advantages of Ripple?
1-As I mentioned above, Ripple is in cooperation with many banks and is also not created by anonymous companies / individuals. its founder is obvious.
2-There is no such thing as inflation in the Ripple network.
3-The value of XRP will increase as banks use Ripple as their trading platform. Early investors may have a fortune, as all banks decide to use XRP as a unified currency.
4- Ripple can easily perform transfer transactions for a symbolic transaction fee.(0.000001$)
What are the disadvantages of Ripple?
1- Is very centralized.
2- In addition to its central structure, Ripple Labs is a monopoly with 61 million of the total token.
3- Because it was created with open source code. In fact, this means a wise move, but it means leaving open doors for hacking. sometimes these hackers can hack systems.
Why is Ripple being criticized?
Your transactions can be frozen/cancelled. The best example of this is the situation where Ripple Labs founder Jed McCaleb is trying to sell a million dollars worth of XRP. This process was rejected by the system. There are rumours that McCaleb is acting against company rules. However, regardless of the freezing of a transaction, it does not comply with the basic cryptocurrency principles.
The table where I compare BTC and XRP is given below
|Processing speed||Up to 1 hour (Depends on the difficulty)||3-5 seconds|
|Transactions per second||About 10||1.500|
|Energy cost per transaction||About 250 kWh||Very low|
|Inflation||By 2140, 21 million coins will be offered||Inflation is almost absent (a small amount of XRP disappears with each transaction)|
|Maximum number of tokens||21 million||100 billion|
By community member Doğukan Köse