What is Ripple? You can recognize the name as the third most popular cryptocurrency after Bitcoin and Ethereum. If you are not fooled around these two cryptocurrencies, then you can read our guides on Bitcoin and Ethereum. But like Ethereum, Ripple is much more than a simple cryptocurrency token. It is a platform that uses an open source protocol. The Ripple team has successfully forged a series of high-profile partnerships. Their partners include a number of prestigious banks all over the world. Ripple's main strength is an almost unparalleled ability to facilitate fast and economical transactions. Bitcoin, to put it in context, was not necessarily built to be a method of transferring money, even though many use it that way. Ripple, on the other hand, was built specifically for financial transactions.
What is XRP?
XRP is the cryptocurrency associated with Ripple, which is the name of the actual platform. Just like Ether is the fuel of the Ethereum platform, XRP is the driving force behind Ripple. The best way to view the XRP utility is to view it as a placeholder token for anything that is exchanged. The amount of XRP will represent the value of the fiat currency or the cryptocurrency that is transferred. The advantage of using XRP as placeholder token is that it is incredibly inexpensive to make a transaction. Each transaction costs only $ 0.00001 (in XRP). This transaction fee is subtracted from the total number of available XRP tokens and is not re-packed. This system helps to create a deflationary economy, similar to that of Ethereum.
What is RippleNet?
RippleNet is a platform that allows users to create their own cryptocurrency. If you are familiar with Ethereum, then you will also know of tokens compatible with ERC-20. RippleNet allows a similar process of creation. The platform is used by many Ripples partners. Banks, payment service providers and other financial institutions use RippleNet to send money worldwide.
How does Ripple work?
The Ripple network is very efficient when it comes to making financial transactions. Imagine that you have an item you want to sell and another item you want to buy. You could go to eBay, but the process would not only be slow but expensive. With the Ripple system, you can simply list the item you want to sell and search for the item you want to buy. Ripple then searches for you and calculates the fastest and cheapest way to transfer for both items. Another advantage of Ripple is that it does not matter which currency to use for trading.
Who created Ripple?
Although the official launch of Ripple took place in 2013, the history of the protocol extends to 2004. It's been four years before Bitcoin was conceived! The founder of Ripple is Jed McCaleb. His previous businesses include EDonkey. McCaleb's curriculum as an entrepreneur allowed him to get investors for Ripple Labs.