Ripple is one of the common names often associated with digital currency. It is seen as one of the recent platforms that has been garnering a lot of traction since it was introduced some 6 years ago.
Origin of Ripple
Ripple was created by 3 authors Arthur Britto, David Schwartz and Ryan Fugger. Its initial release came around 2012 and suffice to say, it has grown to become one of the major transactional platforms in the world today. Programmed to run on the GNU/ Linux operating system, its main objective is to offer currency exchange, transfer of funds and gross settlement in real-time, among others.
How Ripple works?
Ripple is associate with being an RTGS or real-time gross settlement system. Besides that, it is used for remittance and currency exchange which is known as the RTXP or Ripple Transaction Protocol. It utilizes what is known as the XRP or ripples. This runs on a distributed internet protocol which is open source. The XRP is typically its native cryptocurrency where it labels itself as being more:
- instant and fast
- Almost zero cost
- ideal for global financial transactions without chargebacks
Ripple is designed to support cryptocurrency predominantly and the flat currency system that runs on a public ledger, very much like how Bitcoin works. However, it has its own consensus process where payments and transfers are possibly through its distributed network. Validators in this network includes the Massachusetts Institute of Technology (MIT), companies and internet service providers which mean that it does not need the Ripple company to operate the network. Among the companies that use Ripple are:
- and the list of financial institutions is growing
Growth of Ripple
Since it was introduced in 2012, Ripple has grown by leaps and bounds. It became the second largest cryptocurrency based on market capitalization in January 2018 when it breached US$123 billion. The XRP had in 2017 surged past 35,000%. To put that into context, Bitcoin increased by around 1,300% that year.
Why Ripple is so effective
The reasons why Ripple is so popular and well accepted include:
- Contemporary and current – It is a payment system which is designed for the current netizen. After all, the payment infrastructure which are being used have been around for too long, some before the internet era
- Connected – the RippleNet is designed to be the one network that let you carry out all your transactions as it connects digital asset exchanges, payment providers, banks and other institutions.
- Technology – It claims to be the best blockchain in the market today built on the most technologically advanced network which is secure and robust