What is ripple? All about ripple

What is ripple? All about ripple

Ripple is platform and also a currency, Ripple platform is used for cheap and fast transactions. Unlike Bitcoin that was never intended to be a simple payment machine, Ripple is going to cover all world transactions. The platform allows everybody to create their own currency under RippleNet.

What is RippleNet?

RippleNet is a network consist of banks and money services which want to send money over all over the world. To understand this network let’s give an example: Mr. White lives in Chicago and has a mug he doesn’t need. He is interested in football matches. On the other hand, Ms. Wisley lives in London and looking for a mug and has a stamp. Lastly, Mr. Daniel who lives in Alaska wanted a stamp and has a football match ticket.

In real world, with this currency they would never be able to communicate each other. In ripple world they could say: “I have mug and I want ticket” and the system will look for the shortest and cheapest way to make it happen. And you can have internal transactions with $0.00001 fee. That’s pretty close to 0 but the reason they put such a commission is because of DDos attacks.

What is XRP?

XRP is a token used in Ripple network in order to representing value. XRP is kind of a mediator for other currencies. For example if you want to exchange dollars to euro, it can be dollar with dollars and euro with euros to minimize the commission. As highlighted above, the transaction cost on Ripple is $0.00001. And after transaction, this cost will be disappear from the network.

Ripple algorithm (RPCA)

Unlike bitcoin and thereum, Ripple doesn’t have a Blockchain. For the confirmations purpose ripple has its own patented technology called RPCA (Ripple Protocol Consensus Algorithm)

We say “consensus”, if all nodes in the network agree with each other so there is no issue. Imagine there is a console consist of old wise men and there is a war coming and to take actions, city needs everybody confirmation to make a decision.

Features of Ripple

  • The lowest commission currency exchange. There are a lot of country that can’t directly convert their currency so they first convert it to USD then converted to a currency they want, it’s a double commission. It is where Ripple comes as a mediator.
  • Fast international transactions. Average transaction time is 4 seconds. Compare it to hour or more for Bitcoin and a few days for regular banking systems.
  • Payment ecosystem. User can basically issue his own currency for fast and cheap transaction. For example, one can create a currency to buy and see vintage vinyls or action figures between the collectors.

Ripple’s benefits

  • Ripple is good for day to day payments, it is much cheaper and faster than Bitcoin.
  • Ripple can be exchanged to any other currency with a unified minimal commission.
  • Ripple has started as an official organization, as its main focus is to be used by banks. So it is not a subject of multiple regulation checks as many other cryptocurrencies.

Which banks support Ripple:

  • Santander
  • Axis Bank
  • Yes Bank
  • Westpac
  • Union Credit
  • NBAD
  • UBS
Is it good to invest in Ripple?

Warning: there is no investment as 100% safe, every investment has its own risks. Let’s take a look of advantages and disadvantages of Ripple.


  • Ripple is an official institution with the trust of banks. It is not a blockchain technology from an unknown company.
  • All tokens are mined and already exist.
  • The more banks use it for their globally tranactions the higher value of XRP. So if all banks transfer their system into Ripple, it will be much valuable than now.


  • It is completely centralized. It is opposite to the idea of cyptocurrency.
  • All tokens are mined and developers of Ripple will decide when and how much to release. It’s completely like banks.
  • It is open source so the code is accessible and everybody can try to hack it.
Future of Ripple:

What are experts saying about Ripple? Roman Guelfi-Gibbs, the CEO and Lead Systems Designer for Pinnacle Brilliance Systems Inc.:

“Ripple certainly has the potential to move up a notch in 2018, but I think it will be more likely in 2019. As the market observes more projects being coded in other algorithms such as XRP, ETH will likely take a backseat to the next big coin/token. It will take some time for the markets to digest this, so I am projecting 2019 to be the likely time for it to take place. Of course, with crypto, anything can happen, so watch closely.”

Shidan Gouran, president of Global Blockchain Technologies:

“Ripple is unlikely to go up by one or two notches in the cryptocurrency world in 2018, and this is the case for three reasons. The first reason is the sheer dollar volume that separates each of the three currencies in the top positions, in terms of their market cap. Bitcoin is at over $191 billion, Ethereum is at over $84 billion, and Ripple is at over $35 billion. To displace Ethereum would require a deficit of about $49 billion to be closed (which is more than double Iceland’s entire national GDP). The second reason is that the use cases for Ripple are mostly for the trade of assets, not for day-to-day spending. As consumer awareness of cryptocurrencies will rise significantly in 2018 and beyond, the interest of the masses will be on cryptocurrencies that can be used as currencies, not just for investment transactions. Finally, the third reason is that because Ripple cannot be bought with fiat currencies, one must purchase existing cryptocurrencies such as Bitcoin and Ethereum to purchase XRP. This goes on to feed demand for Bitcoin and Ethereum, and will only solidify their positions as the top two cryptocurrencies on the market. “

John-Paul McCaffrey, associate director at Long Island University:

“Although currently there isn’t a platform to exchange fiat currency for Ripple (XRP) this may change sooner than you think.”

Samson Williams, CSO of Ireland-based fintech firm SeedUps:

“Though not a cryptocurrency at all, it is the child of banks. So it’ll get the natural bump from [the] 2018 Recession.”


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