At current Ripple or XRP is the second crypto according to the market cap. Today I gonna tell you What actually XRP or Ripple coin, How does Ripple work and other things you should know.
What is Ripple (XRP)
Ripple is cryptocurrency and an open payment network which is aiming to work with the banks & other institutions that restrict access to fees, charges for currency exchanges and processing delays. Ripple willing to helping banks to have a faster and cheaper way.
Most of the tokens are held by a few persons and private institutions. So It is a Centralized coin.
How Does Ripple Work?
Ripple Network works by being a bridge between currencies. So the main idea is the transaction amount is transferred to the equivalent amount of XRP and when it will reach the second gateway banks it will be retransferred to the original currency, instead of making a swift transaction. By this method it helping the financial institution to send or receive money in a faster and cheaper way.
For Example, One bank needs to trade INR with USD, instead of making a swift txn mean direct INR to USD, Which is taking several days like 5-7 days. The Indian bank would trade INR with XRP and then XRP to USD. Now you think There is an extra step how this cheap and faster right?
Even its add an extra step, Each step takes around 5 seconds to complete and incurs a fraction of the cost. Now The trade completed within 10 secs (compared to the current system of 5 days) and for less than a 0.1% fee.
Any type of currency can be exchanged including USD, euros, RMB, yen, gold, airline miles, rupees and other low liquid currencies in this way.
What Problem Ripple Solves
Slow Settlement Time
In Current time, Every institution made their own system for only their customer, and if people used different institution they couldn’t easily interact with each other. Which require a number of intermediaries to be involved in the process thus it takes 5-7days to complete.
By using Ripple (XRP), It will be reduced to 5-10 secs.
High Transaction Fees
As The intermediaries involved in the process, They will charge their fee and profit so it is increasing the operational cost of cross-border payment fees which is around 1-2% on the current date?
By using Ripple, It will be reduced to 0.2 – 0.4%.
Will The Price of XRP Increase?
The factor determining XRP price is supply and demand on exchanges. Supply and demand are affected by many factors but the price moves up or down to the combination of these two.
I am seeing XRP as a company & Share instead a cryptocurrency. A private company always wants more profit. So I think the Price of XRP will increase. But You have to see their supply system also.
What is The Supply System of Ripple
Ripple created a limited supply of tokens, (100 billion XRP) meaning a zero inflation rate but this does not mean new tokens won’t enter the market.Ripple, themselves, still hold 55 Billion XRP. These were not previously subject to any lockup period. In an announcement Ripple said that these tokens have now been placed in escrow ensures no more than 1 billion XRP will be sold each month. Any unspent XRP from month 1 will be placed back into escrow to be released on day 1 of month 56 and so on.
Founder Ryan Fugger – A web developer in Vancouver, British Columbia
Chief Strategist Arthur Britto – Bistamp Board Member
Chief Cryptographer David Schwartz – Chef technical officer at WebMaster Incorporated.
Chris Larsen – Founder of the lending services companies E-Loan and Prosper
Why Recently XRP Price Surged
I think XRP price surged recently cause They partnered with some large companies like SBI, American Express, and Axis Bank. Also, The Lockup Confirmation helped the XRP price to move up. As the Announcement of Dec 13 allows investors to have a stronger level of confidence in the XRP project knowing the chance of their investment significantly decreasing overnight has been reduced.
Where to Store your Ripple/XRP Safely
I would recommend using a hardware wallet such as the Ledger Nano S. This obviously means that your tokens are stored offline and are generally considered to be the safest option as a result.
I Hope you got some idea of What is XRP, How it works, Will the price increase and Where to store XRP safely. If you have any question or suggestion feel free to use the comment section below. Alos Follow us on Facebook, Twitter.
Latest posts by Jatin (see all)
- Quarkchain ICO review: A Highly Scalable P2P Platform - May 12, 2018
- Different Types of Blockchain Consensus Mechanism - May 10, 2018
- ETH Smart Contracts: How Do The Smart Contracts Work - April 24, 2018