What Is Ripple?
Ripple is both a platform and a cryptocurrency. It was released in 2012 as a duplication of Ripplepay which is a network of institutional payment providers. Ripple is denoted by XRP and was based on a shared public database. Ripple also acts as a currency exchange, remittance network, and RTGS (Real-Time Gross Settlement) at the same time.
Ripple follows the top two cryptocurrencies i.e. Bitcoin and Ethereum in the market, according to CoinMarketCap, and is the third-biggest cryptocurrency in the world. Before it was called Ripple, it was primarily traded as Ripple Labs.
How Does Ripple Work?
Ripple is an open-source Blockchain network that operates on a P2P (Peer-to-Peer) server interface and the coin XRP helps in facilitating financial transactions on the network. Considering the current outdated method for making cross-border payments, Ripple collaborated with various financial systems across the world and provided a similar solution using blockchain tech. Using that solution offered by Ripple, global payments can be carried out instantly, reliably as well as cost-effectively by financial institutions.
Are Ripple and XRP the Same?
People often call XRP “Ripple”, while the truth is that Ripple is the ledger network on which the cryptocurrency XRP runs. On the Ripple network, XRP is the medium that connects all different payment procedures to complete a transaction from one owner to another.
Both are connected to each other as the Ripple ledger technology company is completely dependent on the coin XRP to run it and the coin cannot perform a transaction without the help of the ledger. Currently, XRP is the only native coin announced by the Ripple company.
Can XRP Reach $100?
As the number of XRP users is continuously growing, soon it will be chosen by almost every economic enterprise for making all cross-border payments. Due to the fact that XRP has been created for institutional and business use cases while making international payments easier and faster, the expected price of Ripple could possibly touch $100 in the future.
Currently, there are 41 billion XRP in circulation and the network recently unlocked a huge amount of XRP from one of its escrow wallets and sent them to a separate unknown wallet which, again, gives credence to the speculation that a surge to $100 is possible.
What Is xCurrent Ripple?
xCurrent is a messaging solution by the remittance network Ripple that allows economic and financial enterprises to confirm payment details. It is also used by banks as a global Real-Time Gross Settlement system which is commonly known as RTGS. Using xCurrent, banks can instantly settle all their cross-border payments followed by end-to-end tracking. The messaging service is built around the Inter Ledger Protocol (ILP) which facilitates inter-functionality between various ledgers and networks.
Ripple vs Bitcoin
Bitcoin is the most significant cryptocurrency according to CoinMarketCap, and it has countless differences with Ripple, especially the speed of cross-border transactions.
Bitcoin is wholly decentralized whereas Ripple is more centralized, considering the fact that all of its services come under the umbrella of the Ripple organization, and they cater specifically to banks and institutions. On the contrary, Bitcoin transactions do not allow the involvement of third parties such as banks or other conventional monetary systems.
Bitcoin was created with the intention of serving newly-found financial institutions. Conversely, Ripple supports and helps already surviving financial networks and improves their capabilities for carrying out worldwide transactions.