As we want to enter an in-depth analysis of cryptocurrency widely known as Ripple, and of the ways that you could make a lot of money with it, we need to make a clarification right away, before starting new detailed paragraphs.
Ripple is just the name of the company that produces the etoken called XRP. You will see that generraly people reffer to Ripple as both the company, the system, and the cryptocurrency. However if you want to enter the world of cryptocurrency and get your earnings high up, either prpofessionally or just like a hobby, than you must be well aware of the fact that XRP is the actually cryptocurrency to purchase. So when you want to increase your earnings on the cryptocurrency market, and go beyond the all so famous Bitcoin, you could just try on this very interesting XRP coin from Ripple.
Now let’s see exactly what is with this crypto coin, which became a tough competitor for the other cryptocurrencies like Bitcoin.
Ripple company was founded in 2012, on a market when the cryptocurrencies were not new, however they did not have yet the success that we all know today. Ripple Lab is a US-based technology company. They have developed a whole system for real-time gross settlement, currency exchange and remittance. The currency they created is called XRP, which works with an open source protocol.
Since 2018, XRP has become the second largest coin by market capitalization.
The company behind XRP uses a common shared database, a distributed one which is storing all information about all the Ripple accounts.
Ripple was named in 2014 by MIT Technology Review as one of the smartest 50 companies in the world.
They have developed a network that isn’t actually transferring money from one place to another. They just transfer the equivalent of it. For one transfer, at least 4 members are involved: the sender, the recipient, one dealer, and another dealer.
Gateways. These dealers are called Gateways. A Ripple gateway is usually a financial institution. The network is very wide, and not all actors in it know each other. For this to be functional, Ripple connects each gateway with all the others through chains of trust.
Chains of trust. These are links between two gateways that trust each other. There also can be indirect links of trust. They transfer transactions information to each other by use of https, with protocols that are also used by the banks for their money transactions. After the transaction, within only 3-4 seconds from the payment, the Ripple network notifies and updates the gateways and their lodgers. After the transaction, the tokens are destroyed, thus the XRP remain solely at their beneficiaries and holders.
Making Money with no Mining
Ripple has issued a fixed amount of XRP, amounting 100 billion tokens which are in rotation. The company hold 60 billion in escrow and 1 billion coins is released per month.
Unlike most cryptocurrencies out there, XRP does not involves mining. All tokens are premined, so they can be traded with a minimum of transactional cost.
The network is managed by numerous independenty validating servers that constantly compare their transaction history. Servers can belong to anybody anywhere in the world, including banks and cloud server networks. Ripple instantly validates accounts and balances for pasyment transmission. The payment notifications are delivered as fast as the other processes, speed being one of the main assets of the entire Ripple philosophy and procedures. The only delay involves a few seconds.
Payments are irreversible, there are no chargebacks.
Regarding the energy consumption, running a server on Ripple is quite comparable to running an email server. So you can become a Ripple participant without an impressive investment. Or you could even rent the computing power from the specialized cloud servers out there.
However the Ripple network can be used for any type of other cryptocurrency, not just for XRP. When Ripple system can’t find a chain of trust between any of the two gateways, in its place they can secure a transaction between two gateways with XRP.
The fees for any transaction within the Ripple network are variable and dynamic, based on demand. This is an anti-spam measure. Thus you can feel safe while transacting XRP. And the best news is that the XRP transactions continue to get even safer by the increase of the network size.
So you can get directly involved in XRP Ripple transactions and you will contribute to the increase of security and decrease of fees, as long as the transaction volume goes up.
Verification of transactions
Unlike the mining process for most of the cryptocurrencies, the Ripple system works on a consensus protocol. The system is a peer to peer one, which means the participants are all connected to the network. There are no multiple networks. Some of the participating devices play the role of making and receiving payments for their users (the sender and recipient), whereas the other participants have the role to validate based on the consensus protocol (the gateways).
The work of a validator gateway is to check up the ledger for a respective transaction, meaning the situation registered for the transaction within the network. Then it has to agree to this current state of transaction by use of the Ripple Protocol Consensus Algorithm (the RPCA). The validation process requires a certain number of consensus “yes” votes, meaning 80% agreeing on a specific transaction.
The Future of Ripple
The price of XRP continues to grow, and the forecasts say it will continue the ascending trend. Based on this market success, the company Ripple is planing on extending its services. They also intend to maintain their investments in creating faster transactions, and to back major financial institutions.
The price of XRP coins, as well as the transaction fees, are lower than those for Bitcoin or other cryptocurrencies, which makes XRP ideal for cross border transactions.
Cryptocurrencies, in general, are these volatile tools that will highly fluctuate on short-term, so you need to take on a strategy that is centered on this knowledge. Ripple XRP is a cryptocurrency and a company with a lot to offer especially on a long run.