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7 Facts You Might Not Know About Ripple

7 Facts You Might Not Know About Ripple
Written by publisher team

Ripple was one of the best performing cryptocurrencies in 2017, with a staggering 35,500% increase for the year. As a relatively new player in the cryptocurrency space, Ripple is not well understood by many people, for example, Bitcoin and Ethereum.

With that in mind, here are seven facts that will help you learn about Ripple, how the cryptocurrency works, and its main advantages over other leading digital tokens.

Image source: Getty Images.

1. Ripple is not the official name of cryptocurrency

The cryptocurrency commonly referred to as Ripple is officially called XRP. In other words, there is technically no such thing as a “100 Ripple” purchase.

Ripple Labs is the name of the company that created the XRP token, and to be fair, Ripple is a much easier to remember and more attractive name, which is why many people use the terms interchangeably.

On this topic, if you ever wonder why Bitcoin is not written in capital letters, but cryptocurrencies like Ripple, Stellar, etc., it is because Bitcoin is not a name for company, while many other cryptocurrencies.

2. Ripple offers three different products, and only one uses the XRP token

One interesting fact that many Ripple owners are surprised to learn is that the company’s flagship product, xCurrent, does not actually use the XRP cryptocurrency at all.

xCurrent is designed to allow banks to transact with each other, and to provide compatibility between any currencies, not just cryptocurrencies. In fact, this is the product used in the well-known partnership with American Express and Santander.

The producer that trades XRP through the xCurrent platform is known as xRapid. This is supposed to have several major advantages, such as faster transactions and opening of new markets, but it has not been widely used so far.

3. You can’t mine Ripple

The supply of Bitcoin in circulation is gradually increasing due to a process called mining, in which users pool their computing power to process transactions in exchange for “blocks” of newly minted tokens. Many other major cryptocurrencies are also increasing supply through mining.

However, Ripple is different. All of the 100 billion XRP that will ever be created is already there, although not all of them are in circulation yet, which we will get to in the next section.

4. Only about 40% of XPR tokens are in circulation

Although there are 100 billion XRP Tokens in existence, the majority of them are yet to be traded. Ripple Labs owns about 60 billion XRP as of this writing, 6.25 billion of which are directly owned and 55 billion of which are in escrow for future distribution. Over the next few years, 1 billion XRP will be available per month to be distributed. Therefore, the circulating supply could increase significantly in the coming years.

Based on the current price of XPR just under $0.80, XRP has a value of $31.52 billion in circulation, making it the third largest cryptocurrency by market capitalization. However, the total value of all existing XRP is close to $80 billion.

5. Ripple is not meant to be a payment currency

One of the common misconceptions among people who are new to the cryptocurrency world is the idea that all cryptocurrencies are designed to be payment methods. If this is the case, it will be difficult to prove that we need more than just bitcoin and perhaps some others.

However, many cryptocurrencies, including Ripple, are not designed to be payment currencies. In other words, your favorite retailer is not likely to accept XRP tokens anytime soon, and Ripple Labs is okay with that.

Instead, Ripple is a cryptocurrency designed as a payment method Transfer In other words, the goal is to move money from point A to point B more efficiently than existing methods, such as wire transfers. How do you intend to do this? Being faster and cheaper than the alternatives.

6. The Ripple network is much faster than the Bitcoin or Ethereum network

The average Bitcoin transaction takes 81 minutes as of this writing, and has typically been in the range of 10-30 minutes in recent months. Ethereum transactions are significantly faster, but usually take two minutes or more.

Ripple intends to become immediate Transfer funds, and features transaction times of around four seconds, according to the Ripple Labs website. If you have ever tried to transfer money internationally, you know that the instant alternative can have a huge competitive advantage.

In addition to speed, the Ripple network can handle much higher transaction volumes than other leading cryptocurrencies. Bitcoin and Ethereum can handle about three and 15 transactions per second, respectively, which creates a scalability problem. On the other hand, the Ripple network constantly handles about 1,500 transactions per second, and the company claims that it can be scaled up to handle 50,000 transactions per second – on par with Visa’network capabilities.

This is the reason behind many major financial companies, including American ExpressAnd Santander, And MoneyGram InternationalCurrently testing Ripple technology.

7. Ripple transaction cost is minimal

One of the biggest hurdles for other cryptocurrencies is the transaction cost. In the case of mined cryptocurrencies, these are fees paid to miners as incentives to use their computing power to help process transactions.

Bitcoin transaction fees are noticeably high, rising to over $20 in late 2017 and early 2018. Currently, the average bitcoin transaction fee is around $1.15, according to bitinfocharts.com, but that still makes bitcoins less practical. for daily payment transactions. The second largest cryptocurrency Ethereum, which (like Ripple) is designed as a conversion mechanism, averaging around $0.30.

Meanwhile, Ripple’s transaction fees currently average less than a penny, peaking at $0.03 at the height of the crypto boom in early 2018.

Cryptocurrency has big implications in the real world

Ripple has emerged as a major player in the cryptocurrency market, thanks to its impressive real-world appeal and potential to change the way the world transfers money over long distances. However, it is a cryptocurrency that is very different from Bitcoin and Ethereum in several important ways that investors should be aware of.

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