The single name behind the digital currency (XRP) and the payment network where the currency is transferred is known as Ripple. It is an open source, decentralized payment network carried through beta. The aim of this new system following its website depicts that it wants people to carry out their transactions without any middle person or institutions which charges transaction fees, processing fees and currency exchanges.
Functionality of the ripple system:-
Referring to the Open Coin, the companies which have introduced ripple have the soul agenda of making the transactions free and there should be free movement of money. There is a blog which is posted by the company itself, named “Money”, this blog explains the inception of money and also explains what are the drawbacks and hurdles which have to be faced while transferring the money from one account to another, i.e. the transaction fees, processing delay fees etc which is charged unnecessarily to the people. Ripple goals at establishing a decentralized digital currency system formed on the principles of Bitcoin and manage the money as the internet take cares of the information.
How would Ripple function alike to the internet?
David Schwartz, Ripple’s chief cryptographer explains that presently the payment system is identical to the emails of early 80s. Each and every provider possess their own system for their clients and if the individuals uses other systems then they are unable to interact with each other. Ripple is formulated to interconnect all the different type of payment systems jointly.
Schwartz also claims that there are chances that the huge companies cease their grip over the flow of the money of other individuals as they might lose the access over the flow of data.
People behind Ripple:-
Ripple company protocol named the Open coin was co founded by CTO Jed McCaleb and CEO Chris Larsen. McCaleb possesses immense knowledge about the digital currency. Through this currency maximum Bitcoin trade is catered worldwide. E-LOAN is the online financial enterprise which was co –founded earlier by Larsen. All the team members behind the development of Ripple are related to Bitcoin from some means or other.
Vast Ventures, Andreessen Horowitz, Lightspeed Venture Partners, Bitcoin Opportunity Fund and FF Angel IV are the enterprises from where Open Coin has been funded.
Is Ripple similar to Bitcoin?
In a number of ways Ripple is identical to Bitcoin. Ripple’s XRP is a digital currency which relies on the mathematical calculations and encompasses less number of units which can be mined. Both the type of currencies can be sent from one account to another without the requirement of the third party. The most important point is that this type of currency is protected by digital security which fades off the risk of counterfeit coins.
Is Ripple a competitor to Bitcoin?
Ripple complements and supplements Bitcoin, rather than being a rival to Bitcoin. The website of ripple has a page which is captioned as Ripple for Bitcoiners. Through the ripple system one can easily transfer any type of currency whether it’s Euros, dollars, yen, pounds or even Bitcoins.
Thomas, who is the senior developer of the protocols of Ripple and advocate of Bitcoin have said that “Ripple will open up many more gateways for Bitcoin users and easier ways to bridge Bitcoin with the mainstream world of finance,”
How would Ripple is advantageous to the Bitcoin users?
Ripple have provided Bitcoin the access to get connected to those who uses the different forms of currency, the former also ensures of advanced transactions and increase in the stability. Ripple being the decentralized network does not rely on one enterprise which could secure and mange the database of the transactions. This results in the speedy flow of transactions between the members without any delay.
Ripple backing team states that other benefit by ripple to Bitcoin users is that with the use of peer to peer there is no chance of “central target or point of failure in the system,”
How many Ripples will be created?
The company is planning to create 100 billion ripples. 50% of the ripples will be set free for circulation while the other 50% will be stored by the company.
Why is Ripple described as “free(ish)” rather than free?
Ripple never takes any transaction fees as the banks, credit cards and Paypal takes. Though, it takes a small amount of ripple (equivalent to ~1/1000th of a cent) from every transaction. This amount is demolished rather than stored. This deduction is done for the security purpose for protecting the network being saturated by any single person who may try to carry millions of transactions in one go.
What is the Ripple price today?
The prize of ripple today 13/November/2017 is coined as $0.199375.
What is the latest Ripple news:-
At the time of thinking of buying XRP, which is the Cryptocurrency which is executed on the Ripple Blockchain payment network, the investors should think what and how will ripple play in the upcoming decade. There are numerous factors which come under this umbrella.
XRP is not mined like the other popular Cryptocurrencies. XRP have created 100 billion coins which are in existence today.
Ripple is growing rapidly and right up it is at a market cap of under $7.5bn.This depicts that trending supply of around 38.5 million XRP is swamping at $0.2 each mostly. This might be one so the reason to buy and hold XRP for a longer duration.
Presently there are huge number of banks which are using the protocol of Ripple, which depicts that there should be adequate availability of Ripple so that all the users can carry out their transactions easily and smoothly. As XRP can easily substitute SWIFT as a payment network because of it being less costly and high velocity, SWIFT figures may be employed as an approximate value.
SWIFT administers around $5trn every day. It can happen once in a blue moon that 100 billion XRP will support 5 trillion values of transactions. However XRP works as a bridge which carries the currency which acts as a value from X to Y, then this would depict one coin of XRP at 50 dollars. This is for sure an unrealistic illustration. But this example explains what the investors are showing their consent on. If X bought 100 dollars today of XRP and it is estimated to raise to 5 dollars each coin then the return of the investment of $100 will be $2500, it means there will be a return of 2500 %.
Variation in the Price:-
The numbers of enterprises which have invested in XRP have earned a lot of profit and expanding rigorously. But the price of Ripple has fluctuated a little bit from last months. What is the reason behind this? The foremost reason is the numerous uncertainties regarding the supply of XRP. Ripple Company presently owns more than 60% of XRP coins which is available at present and this company controls the supply of XRP.
The biggest concern is that the company can anytime flood the market with its accumulated coins which will result in the abundant supply of these coins in a short span of time. This is good news if you an investor but if you possess these coins that this is the worst news for you ever.
Brad Garlinghouse, the CEO of Ripple has transferred 55 billion XRP in Escrow to have a control on this issue. Escrow is an excellent technology which empowers Ripple to grant a set supply and which also validates the investors to check this promise instantly.
A cryptographic supply schedule is set by the cryptographically secured escrow. It is automatically set to free 1 billion XRP at the starting of each month and locking the remaining. Now if there is any mount of XRP which is unused then this amount is automatically backed to the escrow account which is only released by 55 months. This eradicated the oversupply of XRP in the market and also provides Ripple the authority of sending their XRP coins to those investors which builds the market atmosphere which ensures profit to the Ripple Company and also focuses on their long term goal which is complex flow of payments.
The thought that the abundant supply of XRP will soon execute the chunk of financial transactions is a very powerful reason for buying XRP coins. Ripple have also tried its level best to control the fear of oversupply of the XRP coins by transferring them to the automated supply network. But there are many other drawbacks and points of consideration which comes under consideration before investing in XRP coins which are governed by Ripple.
If there are more such Cryptocurrencies companies which come up with more kind of digital currencies with more flexible form of regulations, and provides other benefits which are manifested by the Ripple, then this will surely turn to be the biggest deadlock for XRP coins.