Ripple is a currency exchange system developed in 2012, which is built on open source protocol. Ripple blockchain supports various currencies and asset commodities, like fiat currency, cryptocurrency and other value assets.It helps execute a secure, quick and highly cost effective financial transaction and exchange. Ripple can operate on multiple currencies at a time and the transfer happens at real time, quickly,The ripple blockchain also implements the decentralized native cryptocurrency called XPR. It is the third largest coin in market capitalization as of April 2020.
Ripple blockchain uses a Hash tree to summarize the data entered into a single value, This data is again compared across peers to validate and reach a consensus.
Difference between bitcoin and ripple
There are major differences the way bitcoin and ripple works, some of them can be stated as below
- While bitcoin has public ownership, ripple stays with private ownership execution.
- The transaction speed of ripple is very very less compared to bitcoin.
- The transaction cost of ripple is hundred times cheaper than that of bitcoin.
- The bitcoin algorithm works on “proof-of-work”, while that of ripple works on consensus.
- The number of transactions that the ripple executes is much higher than that of bitcoin.
What Ripple does
Financial institutions, even though taking the aid of fin-tech, are still using the conventional gateway system, which doesn’t make them completely reliable. Hence they need to pay a large amount of fees as commission for currency and asset exchange, especially for cross-border transactions. There is a need to bring a revolutionary change in global trade and consumer behaviour.
Amongst all these challenges, Ripple’s ultimate goal is making money transactions and exchange more simpler, quicker and cost effective. This implementation for daily transactions in the real world at rela time can bring in a lot of change in the way transfers happen.
Easier Payment Transfers
International payments are complicated in the conventional systems and are costly as well. Ripple makes the payment much easier and simpler.
Ripple offers the ability to get exchanged with any currency or asset with a minimum of commission.
Quick and secure service
The traditional money transfer system is very time consuming. Also it isn’t totally secure. Ripple performs quick transfers and caters digital security against counterfeit coins.
Enhances business growth
It helps in capitalizing on operational efficiencies and helps in enhancing your business growth to the next level.
Comparatively Less expensive
After The elimination of a third party payment gateway that used to cost a high amount in the conventional system, ripple performs at a comparatively low cost.
Ripple has its gateway called as Ripple gateway for the transactions and exchanges, It uses the “chains of trusts’ ‘ to execute the operations. It works on the basis of consensus for its translation verification, ensuring high accuracy and security.
Ripple has its own cryptocurrency that bridges other currencies. This business friendly digital currency that works on payment network protocol, has the capability to revolutionize the financial transaction world. Through its consensus mechanism it makes the system more secure and anti-spam. Corporations and banks can use this payment layer for a quicker and reliable payment experience. It ensures legal clarity and operational consistency for all the transactions. A single agreement suffices the global real-time payment network execution with the help of Ripple.