There are a lot of cryptocurrencies out there. Bitcoin may be the top of heap when it comes to cryptocurrencies, but there are several other competing cryptocurrencies out there. One of them is Ripple. Named after the transfer protocol that lets the cryptocoin operate, Ripple is one of the more popular choices for altcoins by many. Currently ranked as third on the list of cryptocurrencies, behind Bitcoin and Ether, Ripple has become a powerful presence in the digital currency world. There are several reasons why it has become so popular.
Ripple is actually a lot more than Bitcoin can be. It would be right to say that Bitcoin opened the doors to the technology with its blockchain protocol, but Ripple and other cryptocurrencies that followed are pushing the envelope in what digital currencies can do. Ripple is actually three separate things in one package.
First of all, Ripple is an open payment network. This means that people can set it up so that they can be paid and pay via the network for free and without regulation to anyone in the world. Considering that banks often charge a large amount for international transactions, this is a big boon and helps a lot of people.
The second part of Ripple is that it is a distributed currency exchange. Unlike Bitcoin, where all transactions are done in bitcoins, Ripple can allow anyone to directly trade currencies at the best available rate with no fees or added margin. You send out dollar or the currency of your choice and receiving wallet gets the currency that they want.
Finally, the Ripple network uses a digital currency called ripples or XRPs. This function the same as bitcoins, but they also play an important security function within the system. Transactions in the system require ripples to be processed. This ensures that the network is protected from DDoS attacks and illegal transactions.
Besides these three main features, Ripple can also take pride in the fact that it’s faster and simpler than the original cryptocurrency. Where the blockchain takes minutes to process a transaction, Ripple takes only a fraction of the time. The simplicity also allows it to be integrated quickly into any online storefront, which is good for businesses
Finally, Ripple is also fixed at a certain number. Ripple mining is actually impossible. One of the developers disliked the mining aspect of Bitcoin and created 100 billion XRPs to be the maximum amount. People earn XRPs by purchasing and trading for them the hard way. Ripple is still developing though and these features are just the beginning.