What Is Ripple?

  • To know more about Ripple more closely, the first thing to know is that Ripple is a platform and also a cryptocurrency. You can read Ripple price at coinmarketcap.

    Ripple platform is an open source protocol which is designed to enable transactions to be quickly and cheaply.

    Ripple was created by the company Ripple Labs in 2012, by adopting Blockchain technologies such as Bitcoin and other cryptocurrencies in general. However, Ripple was created for purposes that are somewhat different from Bitcoin. Apart from being used as a place to store wealth, Ripple also has other purposes as a complement to the use of other cryptocurrencies

    Main Purpose of Ripple Creation (XRP)

    The main purpose of the creation of Ripple is as an Internet Protocol-based global payment tool, such as HTTP and TCP / IP used in website and data settings. However, Ripple is specifically designed to send and receive Cross-Chain Universal payments.

    That is, Ripple can act as an exchanger against the currency of the country (Dollar, Pound Sterling, and others), Cryptocurrencies (BTC, ETH, LTC etc.), to Commodities (Gold and Silver). In short, Ripple is an easy solution for exchanging currencies with each other.

    Unlike Bitcoin, which has never been made to be a simple payment engine, Ripple will certainly master international transactions throughout the world.

    Very ambitious indeed, but who knows?

    The Ripple platform has its own currency, XRP, but also allows everyone to use this platform to create their own cryptocurrency through RipleNet.

    What is RippleNet?

    If you don't know what Ripplenet is, it's a network of institutional payment services similar to banks and financial services businesses that provide solutions developed by Ripple to provide experience in sending money globally.

    The Ripple platform allows payments in any cryptocurrency including Bitcoin and has a minimum internal transaction commission amount of $ 0.00001. The only reason why it's not free is to prevent DDoS attacks.

    What is XRP?

    XRP is a token that is used to represent transfer values in a Ripple network. The main objective of XRP is to become a mediator for other exchanges, cryptocurrency, and fiat. The best way to describe XRP is a Joker card that can change to any card. If want to exchange dollars to euros, can the dollar with dollars and euros with euros to minimize the commission. the transaction fee at Ripple is $ 0.00001.

    What is the Ripple Protocol Consensus Algorithm (RPCA)?

    Ripple doesn't have a blockchain this is one difference Ripple compared with Bitcoin or Ethereum,

    A blockchain cryptocurrency might sound rather strange - if you don't have a blockchain, how can you verify the transaction and make sure everything is going well?

    For this reason, Ripple has its own patented technology, the Ripple Protocol Consensus Algorithm (RPCA)

    The word "consensus" in the name of the technology means that if each node has an agreement with another node, then there will be no problem.

    The advantage of Using Ripple (XRP)

    Following are some of the advantages of transactions using Internet Protocol-based Ripple:

    • Cheaper payment. Because Ripple is also a cryptocurrency that cannot be regulated by any institution (organization), government, or even its own creator.

    • Faster payment. Ripple transactions are automatic, a delay that occurs is only limited to seconds.

    • Finance that is easy to reach. Ripple is a cryptocurrency and Internet-based service; making it different from conventional banks that can only reach customers from offices and ATMs, Ripple can reach all users who have internet access.

    • Interconnected finance. The Cross-Chain Universal money changer protocol makes transactions between businesses easier and faster.

    Security Ripple (XRP)

    The use of Ripple (XRP) is very safe because it has network protection from abuse with the Shared Ledger system from account to account. So, it is almost impossible to hack into XRP networks successfully, because Ledger servers record transactions not only in one computer in one place but all XRP users around the world.

    Although in the past there was a large possibility of a "Ledger Spam" attack that would make Ripple server speed decrease, now the bug has been fixed provided that each Ripple account must have a small reserve XRP to make 1 entry in Ledger. These requirements are intended to make "Spam Ledger" impossible. Not only that, but other protection is also done by adding Fee (reserve XRP) in making entries in the Ledger, with the aim to make network attackers lose money quickly.

    Lack of Ripple (XRP)

    Ripple has some disadvantages that you must remember:

    This company concentrates on bank targeting exclusively, and this is a stop for many early users of blockchain technology.

    Ripple, the company, has more than 60% of XRP, and although the possibility of massive sales is very minimal, they have a 51% advantage and therefore control the blockchain.

    Ripple has little or no incentive for public nodes to work on the network, which then leaves corporations like banks to provide node validators. Because only a few nodes are needed to run the network, it's not really distributed.

    Ripple is cryptocurrency, and no matter how promising the business model is, it comes with the same risks as other cryptocurrencies, so you are advised to invest only what you are ready to lose.