Ripple: the origin and features of cryptocurrency
Ripple (XRP) was created in 2012 by Ripple Labs. What is really special is not the coin, but the underlying protocol. After the completion of the expansion phase, the Ripple standard should become a foreign exchange market and a means of payment. XRP supports any currency (dollar, euro, bitcoin, etc.).
Ripple allows you to create a decentralized registry that stores information about how much and what currency one person owes another. With the help of this cryptocurrency, the so-called debt obligations will be issued – the usual accounting will not be needed, and currency exchange will become much cheaper.
The coin is designed to reduce the amount of spam on the network and act as an intermediary currency in transactions. Thus, this system may be of interest to many banks. Some of them are already involved in the Ripple project, such as Bank of America, Santander or American Express.
So far, Ripple Labs has distributed around 40 billion XRP, with 15 billion yet to be issued. There is a total of 100 billion XRP in existence, 55 billion of which remains with Ripple Labs.
Ripple VS Bitcoin: cryptocurrency comparison
- The Ripple protocol can connect many existing payment systems. Bitcoin is a separate means of payment.
- Ripple users can mutually owe each other. With bitcoin, no one knows who has what debt.
- XRP can be bought and sold much faster than Bitcoin. With Ripple, it is possible to conduct up to 1,500 transactions per second, and with Bitcoin, a maximum of twelve.
- Theoretically, bitcoin can be counterfeited if the scammers have enough computing power. Ripple has the best protection against unauthorized access.
- Ripple has been criticized for having a profit-oriented organization behind the protocol and the coin, which is the opposite of Bitcoin.
- The Ripple protocol is aimed at cooperation with banks. Bitcoin has a policy of limiting the use of banks as intermediaries.
- Ripple’s mortgage transactions are not private.
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