While Bitcoin allows users to make fast and affordable payments from anywhere in the world, the network limits the number of transactions that can be processed per second, making it ill-suited for applications that require frequent transactions.
For example, companies that need to process thousands of transactions every second will likely not rely on Bitcoin or its blockchain technology as their currency of choice.
On the other hand, Ripple provides an alternative solution to this problem. With Ripple’s distributed ledger technology (DLT), any currency can be transferred from one party to another within seconds with no chargebacks or delays.
What is Ripple?
Ripple is a real-time gross settlement system (RTGS), currency exchange, and remittance network by Ripple. Also called Ripple Transaction Protocol (RTXP) or Ripple protocol is built upon a distributed open-source Internet protocol, consensus ledger, and native cryptocurrency called XRP (ripples). Released in 2012, Ripple purports to enable secure, instantly, and nearly free global financial transactions of any size with no chargebacks.
It supports tokens representing fiat currency, cryptocurrency, commodity, or any other unit of value such as frequent flier miles or mobile minutes. At its core, Ripple is based around a shared, public database or ledger which uses a consensus process that allows for payments, exchanges, and remittances in a distributed process. The ledger itself can be viewed as a decentralized relational database, which can be used to store information pertaining to anything of value.
This could include traditional monetary transactions but also could extend to less traditional interactions such as storage space, bandwidth, or energy. Ripple does not require mining like Bitcoin does; rather than using an algorithm reward for securing the network, existing trust lines choose validators in place between users on the network itself.
How to trade XRP on an exchange
Ripple is one of many cryptocurrencies available on a variety of exchanges. XRP has been listed on Bitstamp since 2013, and you can use it to trade or transfer funds from Ripple wallets directly to your exchange wallet.
To get started trading Ripple, you’ll need to create an account at Bitstamp, which is a simple process that takes about 30 seconds. You’ll need to provide some personal information, including your name and email address. Once that’s done, you can link a bank account or credit card (Visa/MasterCard) in order to purchase XRP with dollars or euros.
Where can you buy it?
One of the more famous cryptocurrency exchanges that offer Ripple is Kraken. You can also buy XRP on CoinBase, but it’s not as commonly traded. There are also dozens of other smaller exchanges, many of which only offer Ripple in specific regions around the world. Check out CoinMarketCap to see what they’re all worth.
The price often varies quite a bit from one exchange to another, so check multiple sites if you want to get an idea of where to buy XRP most cheaply. Many investors choose digital asset platforms like BitMex or QRYPTOS for trading. However, others just choose centralized platforms such as Coinbase or Gemini.
If you want to trade cryptocurrencies through a platform with minimal fees and regulation, I recommend Binance. However, be sure to do your research before choosing where to buy XRP.
What are its benefits?
Ripple is a real-time gross settlement system (RTGS), currency exchange, and remittance network by Ripple. Also called the Ripple Transaction Protocol (RTXP) or Ripple protocol is built upon a distributed open-source Internet protocol, consensus ledger, and native cryptocurrency called XRP (ripples).
Released in 2012, Ripple purports to enable secure, instantly, and nearly free global financial transactions of any size with no chargebacks. It supports tokens representing fiat currency, cryptocurrency, commodity, or any other unit of value such as frequent flier miles or mobile minutes.
At its core, Ripple is based on a shared public database or ledger that uses a consensus process that allows for payments, exchanges, and remittances in a distributed process. Unlike Bitcoin’s blockchain, a consensus is not decoupled but an integral part of transaction execution. The solution can be used to facilitate payments between two parties without requiring a trusted third party.
These transactions are verified by network nodes and recorded in a public distributed ledger called the Ripple transaction ledger. This closed payment channel has been described as an example of Ripple’s innovation over cryptocurrencies like Bitcoin because it does not require mining or specialized hardware.
