After the Bitcoins of cryptocurrency, hundreds more have been born, which in turn are gaining more and more popularity, and as a result the interest from investors has also grown, although among them there is no lack of those who are still doubtful and suspicious. Digital currencies, in general, have high volatility to their advantage, which can lead to high profits, but also to large losses.
Among the most important cryptocurrencies we certainly find Ripple (XRP), which has been in circulation since 2013, at the hands of Chris Larsen and Jed McCaleb, who also founded OpenCoin. The term Ripple means both the cryptocurrency and the entire network in which it operates. It is important to say that Ripple is made up of three parts, that is, there is a Payment Network; there is a Stock Exchange; and the currency XRP.
Overall it has the same requirements as other digital currencies. Ripple is organized through a register called Ledger, which controls the exchanges that contribute to the completion of transactions within just a few seconds when, on the other hand, for Bitcoins it takes a few minutes to complete a transaction and they too, therefore, are protected by security measures that ensure that no forgeries and duplications occur.
Ripple like Bitcoins is also Open Source, i.e., it can be modified and shared according to the rules of the licenses. The starting idea is always that of the Peer-to-Peer (P2P) monetary system, which is based on trust between people and social networks. What is sent and received are credits that are converted into real money in so-called Ripple gateways. All transactions, therefore, take place only between persons who have established a bond of trust, in an instant, free and irreversible way.
Guaranteeing credit within its system to all those who are known, and through Ledger records the traces of the sources of all IOU, which stands for “I Owe You”, which translated means “I owe you”, and with this system debts that are not repaid are automatically settled by the issuer. Each participant specifies which other component is trusted and therefore offers to accept IOUs up to a certain value. When making payments to those who trust you, all you have to do is to set up your IOU balance sheet with them and indicate the amount you have to pay back to them for that payment.
If, on the other hand, you have to pay someone who does not trust you, the Ripple system will look for a number of credit connections between you and the recipient of the payment, so you will then have to go and pay the first person in the chain and, as a result, this person will pay the second, until you reach the recipient. All this happens in practice in a way that is imperceptible to the end user. In essence, Ripple connects all these users of different currencies within an extensive payment network, without overlapping with transactions via their individual currencies. It is up to the issuer to keep the balance sheets electronically; it is not Ripple that investigates how a currency is issued.
XRP is the only currency circulating in the Ripple network and is, as we have already seen, the unit of measurement for the IOU credit exchange. Ripple, therefore, gives you the ability to make the exchange and transfer money between clearly different currencies, and there are no fees to pay.
Since Ripple merges within a currency that is used by a specific community, it happens that the power of that currency also extends to the number of people who are part of the Ripple network. In this way, even the most unstable currencies enjoy the same advantages as the strongest currencies, for example, by becoming valid to make payments.
Ripple gives any person the ability to use their own currency. The person who puts the currency into circulation can be considered a mediator between those who use that currency, and does so through the currency used for payment between two users, committing themselves to pay the debt they are taking over.
One of Ripple’s objectives was to lower the cost of brokerage on financial transactions. OpenCoin has already decided that the Ripple will be a total of 100 billion units, all of which have already been generated, where part will be distributed later, so it is not possible to make Ripple Mining. The coins are assigned to those who make available the power of their computers to contribute to scientific research. Unlike, instead, Bitcoins, for which a maximum limit of 21 million units has already been set, and that will be created in a progressive way is expected until 2140.
With Bitcoins it also differs in the speed at which transactions take place, i.e., they take place in very few seconds;
Because of some aspects such as, for example, the absence of Mining; or the fact that it is not really owned because it is practically owned by OpenCoin, and so we can not even talk about decentralized currency, many believe that Ripple is not to be considered a real crypto currency.
The system put in place by Ripple, also likes banks, especially to make payments worldwide very quickly and cheaply. In this way, the bank can exploit the Ripple network to its advantage, winning new customers and increasing its profits by promoting various products and services. To date, there are several banks using Ripple.
Where To Buy And How To Open A Ripple Portfolio
Since you decide to buy Ripple, it is essential to open a Wallet, which is practically a digital wallet, where you can then deposit your currencies. There are several ways to get to own Ripple, that is, the first is through OpenCoin which, being an Open Source project, makes available a number of Ripple to those who are interested in the project, and who give their contribution in an industrious way. The second possibility is that you can subscribe directly to the official Ripple Forum, to exchange your digital currencies with another user who owns the Ripple, or who wants to sell them anyway. There is also the possibility to orient yourself towards Exchange platforms, and the Ripple website recommends which are the best platforms to use for buying and selling, and which cryptocurrencies and classic currencies can be used for this operation. It is always recommended to rely on regulated and known exchanges, as it is very easy to end up a victim of fraud.