Ripple or Ripple Labs is an American technology company that developed RippleNet, a decentralized digital payment network based on blockchain technology that develops global payment products; one of its products is the cryptocurrency XRP. It employs a consensus ledger to verify its transactions. If you are a cryptocurrency fan, you should invest in Ripple at rain.com!
But first, let us get to know Ripple a little better!
What Is Ripple? How Did It Originate?
Ripple emerged in 2004 as RipplePay, created by a software developer named Ryan Fugger. In 2012, Fugger granted full rights over RipplePay to Jared McCaleb, a programmer who went on to develop the XRP cryptocurrency and blockchain technology in the same year. As a result, RipplePay eventually came to be known as Ripple.
Ripple has seen remarkable success, with more than 300 institutions employing the RippleNet payment network in more than 45 counties as of 2019. Though, Ripple found itself amidst a lawsuit filed by SEC, in 2020, for allegedly using its cryptocurrency, XRP, to sell 1.3 billion dollars through undocumented securities.
How Does Ripple Work?
Ripple enables the swift and smooth international exchange of money between two parties via fiat currencies and cryptocurrencies.
The working of Ripple utilizes the Hawala network that allows the exchange of money between two parties without either party having to move tangible money. Hawala is an ancient and informal money transfer method that relies on the performance of the intermediaries.
Ripple allows cheap transactions charging fees as low as 0.00001 XRP while processing transactions in 5 seconds, on average. Ripple serves as a bridge currency for international money exchange. Buyers can opt for XRP at a cheaper rate than the fiat currency.
Some More Products Offered by Ripplenet
- xCurrent: This software allows banks to distinguish themselves by providing new cross-border payment options and cutting their overall settlement costs. The solution fits inside the risk, compliance, and information security frameworks already in place at banks and is specifically created to match their needs.
- xRapid: It allows payment processors and other financial organizations to reduce liquidity costs while enhancing client satisfaction. Liquidity expenses are high due to frequent local currency accounts around the globe for payments into emerging markets. Lower capital requirements for liquidity are made possible by xRapid. XRP.
- xVia: It is a standardized payment interface for businesses, payment providers, and banks looking to send payments across various networks using a common interface.
How Is Ripple Different Than Bitcoin?
- Bitcoin uses blockchain mining to verify transactions digitally and adds them to the blockchain ledger. Verification of block transactions is achieved by solving complex equations and encrypted hash puzzles. Ripple uses the consensus mechanism to authenticate its account balance and transactions. Most validators must accept the transaction for verification.
- Bitcoin is not as fast and cheap as Ripple’s XRP. It takes about 10 minutes to process transactions, charges a higher fee, and uses more energy than XRP, making it less eco-friendly.
- With a supply of 100 billion tokens, XRP has a much larger reserve than Bitcoin, which only has 21 million coins.
- XRP’s target users are banks and payment networks for remittance, currency transfer, and payment settling, while bitcoin is used mainly for payment for goods and services.
Advantages and Disadvantages of Ripple
- Ripple is employed by large financial institutions such as Commonwealth Bank of Australia, Santander, Fidor Bank, and an association of 61 Japanese Banks. However, most of these institutions utilize the RippleNet payment network only, not its cryptocurrency, XRP.
- Local business owners can also use XRP, but the allegations against Ripple by SEC have garnered some controversy making XRP less appealing to small business owners.
- XRP serves as a bridge currency for international currency exchange, but it is inconvenient to buy in the U.S.
Should You Invest in Ripple?
- The SEC lawsuit controversy surrounding Ripple does make people doubtful of investing in XRP, but XRP is also the only cryptocurrency trusted and adopted by large financial institutions and banks.
- Ripple is growing steadily, and with its continuous global acceptance, trading it with the help of platforms like Q8trade will enable you to earn an appreciable return in the future.
- While investing in Ripple’s XRP, you can stay connected to other major cryptocurrency exchanges. Still, staying connected with the exchanges that provide you security and easy access is preferred.
- Ripple will most likely stay immune from external market shocks in the future because its association with banks makes it partially centralized, which keeps XRP’s prices stable. Therefore, stability in prices is an attractive incentive to invest in Ripple.
Should You Go For It Now?
Some people seem to harbor the belief that XRP has been stagnant at a lower price range for a while and that it is too late for it to break out and start gaining momentum once more. However, this depends on the development of banking and their use of cryptocurrencies, and all signs point to banks taking this area much more seriously.
How To Invest in Ripple?
Living in the Middle East, beginning your Ripple investment journey should be easy as rain.com is here to ensure your investment start is as painless as possible. Rain is a trusted cryptocurrency trading exchange based in Bahrain that allows you to buy XRP, Bitcoin, Litecoin, Ethereum, USD, and others online. It is specifically tailored for Middle Eastern customers and provides fiat currencies from mainly Middle Eastern countries, but it also offers the US dollar.
In most of the cryptocurrency platforms that offer XRP trading, you can start by investing as little as 30 XRP, but you only need to pay a starting cost of 20 XRP to invest in Ripple at rain.com.