Bitcoin knows almost everybody, but what about ripple? When it comes to Ripple, the term XRP also is mentioned. Many see no difference between ripple and XRP. That’s easy to explain. While Ripple is the network, so to speak, XRP is the coin on this network. Among the crypto currencies, Ripple (XRP) has consistently made it into the top 5 rankings and has the highest market capitalization. From this point of view, Ripple is a very successful crypto project.
What exactly is ripple?
Behind Ripple is a US company founded in 2012. The company started as Opencoin and changed its name to Ripple in 2015. The maximum amount of coins is 100 billion. Per second, 1.5 transactions are executed via ripple. Smart contracts will soon be available through Codius. By comparison, Bitcoin was founded in 2009 by Satoshi Nakamoto. Here are 3-6 transactions per second done. In Bitcoin, the coins are created by mining, while Ripple fixed from the beginning to a fixed sum and has created this.
Ripple stands for transaction solutions
The main task of Ripple is to provide solutions when it comes to international transactions between banks. The goal is to make transactions as easy as possible. In addition, three tools are mainly used: xRapid, xCurrent and xVia. These three solutions include Coin XRP, which can be used on Ripples Blockchain.
What’s in it for Ripple?
There are many strong arguments in favor of ripple. Anyone who deals with transactions more often knows that traditional transactions can not always be done efficiently. Sometimes they can take a disproportionate amount of time and be charged high fees. If you use Ripple, you can usually complete your transaction in five steps. The client sends an international payment. In the next step, the customer’s bank buys XRP. Thereafter, the bank sends XRP to the receiving financial institution. This in turn sells the XRP. In the fifth and final step, the resulting proceeds are credited to the customer on the account.
What do I have to do to get Ripple (XRP)?
It is common to get coins through mining. That does not work with ripple. XRP are produced at once and launched by Ripple. Therefore, buying XRP is only possible through a stock exchange or broker.
Are there differences between Bitcoin and Ripple (XRP)?
The goal is the crucial difference between Bitcoin and XRP. While Bitcoin was created as an alternative to the traditional financial system, Ripple’s goal is to improve the payment system within financial institutions. Another difference is that the crypto currency collects and confirms bitcoin transactions both in one block. The block is then connected to the existing block chain. For this mining, a miner will receive newly created Bitcoins as a reward. This process requires only a powerful computer. In contrast, Ripple has determined a centralization of the distribution of XRP. All XRPs are already created. This is a sum of 100 billion XRP, of which 40 billion are currently in circulation. A maximum of 1 billion XRP will be transferred to payments each month. Coins that are not used will be taken off the market again.
Conclusion concering Ripple
XRP stands for the coin of the ripple protocol. The coins can only be purchased through a stock exchange or broker. Coins are created in the majority of crypto-currencies through the so-called mining. Ripple has created all 100 billion XRP at once. More than this amount will never exist, according to Ripple. Currently, 40 percent of the total amount is traded on stock exchanges. Ripple manages the remaining 60 percent on his own.