Ripple is one of the quite prominent cryptocurrencies in 2017 with a growth rate of 35,50%. However, before that Ripple was not as well known as Bitcoin or Ethereum. Therefore, this article will list the things that you need to know about Ripple.
Ripple is not the official name of this cryptocurrency
XRP is its official name. The reason many people often call Ripple instead of XRP is because its issuer’s name is Ripple Labs.
So if you see bitcoins not capitalized, but cryptocurrencies like Ripple or Stellar do, that’s because bitcoin is not the name of a company.
There are 3 key products and only 1 product that uses XRP
Many people will be surprised to learn that xCurrent – the flagship product does not use XRP.
xCurrent allows banks to transact with each other and customize compatibility between any currency, not just cryptocurrency. This is the product that major banking partners like American Express and Santander want to work with.
The only product that uses XRP is xRapid, but it is not yet popular, the other product is xVia.
Unable to mine
While the supply of Bitcoin increases every day by using computing power to validate transactions and find new Bitcoin blocks – what we call Bitcoin mining; Ripple has already issued 100 billion XRP.
40% of XRP is currently in circulation
Although the supply is 100 billion XRP, only 40% is in circulation, while 60 billion XRP is owned by Ripple Labs, with 6.25 billion directly owned and 55 billion as escrow assets to be opened. lock in stages in the future. Accordingly, next year, every 1 billion XRP will be distributed to the market, contributing to an increase in the supply of XRP.
Not a payment instrument
All newcomers to the crypto world assume that all coins are for payment. Many cryptocurrencies, including Ripple, are not a means of payment.
Instead, XRP is designed as a method of transferring payments – in other words, it allows money to be moved from point A to point B more efficiently than current methods, such as wire transfers. This idea comes from Ripple’s fast and cheap processing speed.
Faster than Bitcoin and Ethereum
A typical Bitcoin transaction takes between 10 and 30 minutes. Ethereum transactions are significantly faster but still need over 2 minutes to execute.
Ripple boasts a transaction time of about 4 seconds, according to information from the Ripple Labs website.
In addition to speed, Ripple can also handle significantly higher transaction volumes than Bitcoin or Ethereum. On the other hand, the company claims that it can process 50,000 transactions per second – on par with the processing speed of VISA.
This is why large financial corporations such as American Express, Santander or MoneyGram International are very fond of Ripple’s technology.
Very low transaction costs
Bitcoin transaction fees are very high and sometimes more than 20 USD. Currently, the average Bitcoin transaction fee is $1, but this still makes Bitcoin less useful in day-to-day payments. Ethereum lost about $0.30 on average.
Meanwhile, Ripple’s transaction fees are currently less than 1 penny, and peaked at $0.03 at market peak.