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XRP is one of the cryptocurrencies floating on CoinMarketCap among a myriad of others. But there is a big difference behind the vision that follows and others. While bitcoin seems to be destined to become a global digital currency, Ripple (XRP) wants to provide the world with a global financial transfer framework.
RippleNet
RippleNet is the main framework presented by the Ripple company. It provides banks and different payment providers around the world with a fast, secure and reliable way to transfer money globally. The target audience of Ripple largely seems to be banks, payment service providers and digital resource exchanges.
In the modern world, sending money all over the world is still a very hectic procedure that often takes days to complete. Furthermore, the costs associated with sending money all over the world are at the top. A high fee is charged by the parties in between. Ripple wants to simplify interbank communication and transfer all over the world.
SWIFT is the most commonly used structure for interbank communications worldwide at this time. Ripple seems to be more than capable enough to replace it in the future with the use of advanced blockchain technology.
As mentioned on the official Ripple website, some of Ripple's most famous customers now include Standard Chartered, MoneyGram, MUFG bank and many others. RippleNet essentially offers these financial institutions an easy, fast and secure payment path.
XRP
The cryptocurrency that is used in the Ripple ecosystem is XRP. It works essentially as an intermediate currency. Represents the value in the Ripple ecosystem. An equivalent representation of fiat, or another cryptocurrency, can be used in the Ripple network.
Global payment agreements made using XRP are much faster than BTC or ETH. Bitcoin adjusts payments in about one hour while ETH does it in about 2 minutes. Ripple, on the other hand, regulates his transactions in 4 seconds. This provides a very fast and efficient payment method available to its customers. It is not necessary to wait 3-5 days to obtain confirmation of the global payment. With Ripple, you can do it in 4 seconds.
Ripple Consensus Protocol Algorithm (RCPA)
Unlike the major cryptocurrencies like Bitcoin and Ethereum, Ripple does not use the proof-of-work (PoW) framework within it. This eliminates the overheads of extraction from the ecosystem established by Ripple. The extraction costs are removed from the photo.
Consent is required in the Ripple network to finalize a transaction in the network. It is different from PoW or PoS. Instead of the miners, the nodes involved in the Ripple network are called validators. Validators are responsible for validating transactions in the network. There is no competition for mining. Once consensus is reached on the network, the ledger handled by each validation node in the network is updated. Becomes the last closed Ledger who maintains trust in the network. Ledger last closed is the current state of the network.
Each node in the network also maintains its open ledger containing the transactions provided to the server by the end users of that node. Although, these transactions are not considered final until they are processed through the network and are ratified by the Ripple consent protocol. More details on this protocol can be found here.
advantages
Some cryptocurrencies can not be converted into one another directly. They must first be converted to US dollars, which are then converted into the respective cryptocurrency as desired. A lot of overhead costs are associated with this whole procedure. The XRP can act as a mediator between these two cryptocurrencies at a much lower cost.
As no mining activity is involved in Ripple, much electricity is saved. In networks involving mining, the use of electricity is becoming an important issue. The bitcoin network is currently using more electricity than the Irish country.
The transaction rate in XRP is also very high. 4 seconds are very low for global money transfers compared to traditional sources currently available.
Ripple certainly has the potential to be incorporated into the global financial framework that is currently in place. If communication between banks is made much faster around the world using ripple, there may be a ripple for a roller coaster ride.
The group
Here is the team behind Ripple.
SEE ALSO: Ripple XRP: a centralized cryptocurrency in a very decentralized space
