Ripple is a real-time gross settlement system (RTGS), currency exchange, and remittance network by Ripple.
Also called the Ripple Transaction Protocol (RTXP) or Ripple protocol is built upon a distributed open-source Internet protocol, consensus ledger, and native cryptocurrency called XRP (ripples).
Released in 2012, Ripple purports to enable secure, instantly, and nearly free global financial transactions of any size with no chargebacks.
The ledger supports tokens representing fiat currency, cryptocurrency, commodity, or any other unit of value such as frequent flier miles or mobile minutes.
How does Ripple work?
Ripple is a real-time gross settlement system (RTGS), currency exchange, and remittance network by Ripple. Also called the Ripple Transaction Protocol (RTXP) or Ripple protocol is built upon a distributed open-source Internet protocol, consensus ledger,, and native cryptocurrency called XRP (ripples).
Released in 2012, Ripple purports to enable secure, instantly, and nearly free global financial transactions of any size with no chargebacks. It supports tokens representing fiat currency, cryptocurrency, commodity, or any other unit of value such as frequent flier miles or mobile minutes.
At its core, Ripple is based on a shared public database or ledger that uses a consensus process that allows for payments, exchanges, and remittances in a distributed process.
This process allows for payments, exchanges, and remittances to be processed in a matter of seconds. Ripple does not use mining; instead, it uses an iterative consensus process that increases its security.
Is it secure?
Because XRP is built for enterprise use, it is extremely unlikely that anyone can compromise XRP. In fact, Ripple has a stated goal of ensuring that XRP is one of the most secure digital assets in existence.
Even if a weakness was found in XRP, Ripple’s protocol could be updated to remove that vulnerability. With other cryptocurrencies like Bitcoin and Ethereum, if someone discovered a vulnerability in either of those assets’ protocols, there would be no way to patch it – hence why they are vulnerable to hacks today.
Is it fast?
XRP transactions settle in four seconds or less, which makes it nearly instantaneous compared to many other popular cryptocurrencies. By comparison, Bitcoin transactions typically take 10 minutes or more to clear.
This speed comes from Ripple’s consensus process, which requires 80% of validators on the network to agree on a transaction before it can be validated and settled on the ledger. This prevents any single party from manipulating transactions because they need majority support before anything goes through.
Can I use it on my smartphone?
You can use Ripple on your smartphone. It offers a native app for Android and iOS that makes it easy to send money in a simple way. This feature makes it possible for anyone, regardless of his or her technical background, to transfer money with just two taps.
Ripple does not only offer person-to-person payments but also person-to-business payments by using gateways that connect individual wallets or accounts directly with financial institutions.
Where can I buy XRP from?
If you’re looking for the answer to where to buy XRP, several options are available. If you want something simple, one option is using a service like Bitstamp. It might be more cost-effective for larger purchases to utilize a service such as Coinbase; they will buy XRP for you directly at market price.
Most cryptocurrency exchanges support XRP/fiat currency trading pairs. You can also use a platform like Exarpy, where you can purchase XRP with other cryptocurrencies or wire transfers (more expensive, though).
Can I reverse the transaction?
Ripple was built from scratch as a distributed network, so it wasn’t designed with a centralized blockchain architecture-meaning no one entity has control over it. This may not seem like a big deal, but in order for money transfers to be settled, there needs to be an authority such as a bank or payment provider who acts as an intermediary.
If you send money through Western Union or another service that settles transactions through traditional channels like ACH (Automated Clearing House), you can reverse your transfer if fraud occurs. If something goes wrong with Ripple, however, there is no central authority who will step in to take care of things on your behalf.
Instead, Ripple uses its native cryptocurrency XRP to act as a bridge currency between any two currencies being transferred. For example, if I wanted to send $100 worth of Euros to my friend in Japan, I would first need to convert my dollars into XRP before sending them over.
Once they received their Euros, they could then convert their XRP back into yen and complete their transaction.
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