With a 35, 000 % upsurge in value in 2017 and market cap of over $118 billion, Ripple has become a much-debated topic among analysts and investors alike. But, what's Ripple? Is it like other cryptocurrencies? Why has it been burning lately? Continue reading to obtain answers to these questions.
1. What is Ripple?
الريبل is a payment solutions company, founded by Chris Larsen and Jed McCaleb. Their Ripple Transaction Protocol (RTXP) provides the cryptocurrency XRP. Ripple claims to provide faster, reliable, and affordable transaction solutions for financial institutions. The company has created 100 billion XRPs also it currently holds 61% of the coins. The current plan is to to push out a billion coins per month.
2. Differences Between Ripple and Bitcoin
Both Bitcoin and Ripple are cryptocurrencies that use block-chain technology. But, there is a fundamental difference between your two: unlike Bitcoin, Ripple cannot be mined. The currency is not set up as a mineable currency, and its use is fixed to the Ripple network.
Both Bitcoin and Ripple use validating nodes for validating ledgers. Bitcoin has about 10,000 trusted nodes, while Ripple has only five. However, the business plans to add 11 more over the next 1 . 5 years. The five validating nodes are controlled by Ripple. XRP has received criticism for the absence of independently trusted validators. The XRP Ledger is available to all or any, so anyone can download it and become a validator. Many companies run their very own nodes on the Ripple network.
3. Known reasons for Recent Price Hike of Ripple
The recent price hike of XRP includes a lot to do with the currency's expected use by finance institutions and investment by believe-the-hype investors. Ripple has been successful in gaining banks as customers because of its other products. Ripple's xCurrent is recommended by financial institutions because it offers real-time communication and quick corrections, thus reducing delays in bank transactions. The company plans on introducing a new product, xRapid, that incorporates XRP. They start to see the new product as an possibility to get banks to use XRP. Investors see the potential of the currency as a financial vehicle utilized by banks worldwide.
