Bitcoin remains the king of cryptocurrencies, especially when it comes to rising prices and media attention. But there are other contenders for the throne. And one of them is Ripple. We tell what Ripple is, how it differs from Bitcoin (Bitcoin), and why many people do not recognize it as a cryptocurrency. Network Ripple and XRP First of all, it should be explained that Ripple is not a cryptocurrency in the usual sense of the word. In fact, this is a settlement system designed to become a faster, more transparent and safer alternative for existing ones (for example, for the SWIFT system used by banks). XRP - the so-called Ripple coins - are used to facilitate transfers in various currencies. In existing settlement systems, the basis for conversion is usually the US dollar. The process is associated with additional costs and takes a long time - that is why bank transfers between countries often take up to 3 days. By converting a payment to XRP instead of dollars, the system saves on exchange costs, and transaction processing takes a few seconds. Many banks, including Fidor Bank, Santander, Commonwealth Bank of Australia and a consortium of 61 Japanese banks have shown interest in the new system and are already testing or implementing applications based on it. How XRP differs from Bitcoin XRP is a token used to transfer value to the Ripple network. While bitcoins are mined through mining, all 55 billion XRPs (often called riples) were generated by the founders. Every month, one billion tokens enter the market through a system of smart contracts. In this sense, Ripple copies the mechanism of a gradual increase in Bitcoin supply (it was he who contributed to the rise in its prices), but without the huge cost of electricity for mining. Bitcoin vs. Ether: How do they differ and is it worth investing in them? In fact, technically Ripple does not even use blockchain - the basis of Bitcoin and most decentralized cryptocurrencies - in the usual way. The Ripple blockchain is not distributed over a network of computers with “host” software, but is stored on servers of trusted partners in the so-called “allowed” network. Currently, they include banks, money transfer systems and educational institutions. Considering the fact that all tokens were created by developers, and not mined using mining, this means that Ripple is not a decentralized system. Perhaps the high interest of banks all over the world is due to this centralized, regulated Ripple structure, while Bitcoin and other truly decentralized systems are considered a threat to their existing hegemony. How can I spend XRP In short, no way. Ripple was not created as a means of payment. In fact, its sole purpose is to transfer value when converting other currencies (or commodities, such as gold or oil) through the Ripple network. Every time a bank or other organization uses it to transfer money or property, a small amount of XRP is retained. It is this commission that endows tokens with cost — in a sense, they can be considered “fuel” for the machines that make these transfers. How to invest in Ripple (and whether it is worth it) Ripple has definitely occupied its niche in the cryptocurrency world, and a large list of organizations using it indicates that the tokens themselves will acquire high value over time. Last year, Ripple outperformed Bitcoin and many other cryptocurrencies in terms of growth rates. At the start of 2017, $ 0,006 was given for one XRP. In January of this year, the cost of Ripple peaked at $ 3,87, before falling to the current value of $ 0,93. How to buy a Ripple cryptocurrency: XRP step-by-step instructions are available on the Binance and Poloniex cryptocurrency exchanges. As a rule, they cannot be bought for ordinary money - you first need to purchase bitcoins or ethers, and then convert them to Ripple. Regarding the second part of the question, it can be said that interest to Ripple on the part of large financial institutions is considered an important indicator of its future value. However, before investing in any cryptocurrency, it should be thoroughly studied and identified prospects. As you know, the cryptocurrency market is extremely volatile, and prices can fall as rapidly as they rise.
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