Ripple is a cryptocurrency like Bitcoin and was founded in 2012 as succeeding duplication of Ripplepay. Ripple performs various functions from being a currency exchange, a remittance network and a real-time gross settlement system (RTGS). Ripple is distinct from Bitcoin as it does not utilize energy and proof-of-work but uses a ledger that is controlled by a network of validating servers that works by comparing various transaction records.
Ripple is powered by a public database that ensures harmony between those validating servers to maintain integrity. The virtual currency protocol also known as a token (XRP), enables instant transfer of funds between two parties. With Ripple, you can exchange any currency even gold. The platform operates without any transaction fees and avoids the time wasted by intermediaries like banks and crypto exchanges.
How Is It Fundamentally Different from Bitcoin?
The main difference between Ripple and Bitcoin is that it’s not Blockchain-based, but instead, it is consensus-oriented. The virtual currency uses Hash Tree to summarize data into single units comparable between its various validating servers to offer consensus,
From the look of things, banks are in love with Ripple. It is because it enables the transfer of vast amounts of funds around the globe instantly. It can also be meant for enterprise purpose and supports person-to-person transactions.
Ripple has been performing well since its launch with a record of over 35 million transactions successfully processed. When compared with leaders Bitcoin and Ethereum, the virtual currency can handle over 1,500 Tps (Transactions per second) and has recently managed 50,000 Tps after an upgrade. On the other hand, Bitcoin can manage 3-6 transactions per second while Ethereum handles 15 Tps.
What Is XRP and what’s Its Purpose?
According to CNBC, Bitcoin’s market cap will be no closer to Ripple’s if it hits a high of $6.57. As per the information availed by Ripple Company, there are a total of 100 billion tokens in circulation and represents the total XPR tokens that will ever exist in the platform. With the use of XRP, Ripple has the power to process a transaction in just 3.5 seconds. Due to the independence of XRP from the main Ripple network, banks cannot use XRP to remit funds in dollars and Euros.