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Launched in 2012 by Ripple Labs Inc, Ripple is a real-time gross settlement system that allows currency exchange and also acts as a remittance network. The platform is designed to cater for financial institutions. It helps them move large sums of money faster and cheaply across borders.
For this reason, it has become very popular with these institutions. The platform has taken the blockchain to the mainstream and has over 100 clients, and there are more that are joining by the day.
Without much ado, let’s have a look at six interesting facts about Ripple.
Ripple Is Built With Environmental Sustainability In Mind
Unlike many crypto coins that are mined especially using the proof of work algorithm, all the 100 billion Ripple coins were initially premined. PoW is a great way to decentralize cryptocurrencies. However, it also consumes a lot of energy. For example, the amount of energy required to mine a single Bitcoin can light four US households for 24 hours.
However, Ripple doesn’t seek to be decentralized in the same manner as Bitcoin and other PoW cryptocurrencies. So, it doesn’t need to use such unsustainable mining methods to work fast and be an effective blockchain.
Ripple Is Designed With Scalability In Mind
The Ripple platform is designed to be very scalable. This means it can handle many transactions without clogging the network. Currently, the Ripple coin can process over 1,500 transactions per second.
That’s a lot of transactions when compared to Bitcoin which can only handle about seven transactions per second. It also offers cheaper transactions when compared to other platforms for transferring funds.
The Ripple Network Is Designed For Financial Institutions
Even though many people can argue that the blockchain technology was designed for disruption and decentralization, the team behind Ripple decided to take a different approach. The platform is designed to aid financial institutions and make money transfer across borders faster and cheaper.
This is one of the reasons that makes Ripple, not like other cryptocurrencies that aim to eliminate the need for these institutions. Ripple was the first platform to realize full decentralization of the financial industry would take time and would have to happen in steps.
For this reason, some people dislike Ripple. However, there is no disputing the fact that it helps increase the adoption of the blockchain technology among financial institutions.
Ripple Offers Secure Transactions
The Ripple coin uses a public ledger to record all transactions. There is a large community of trusted validators and also a team of full-time engineers who work nonstop to develop and maintain the ledger.
Even though Ripple is considered to be more centralized when compared to other cryptocurrencies, having the ledger work this way somehow makes it a bit decentralized.
This helps make the ledger more resilient and also resistant to single points of failure.
The Ripple Coin Isn’t Going Anywhere Any Time Soon
Unlike many other cryptocurrencies that have come and gone due to lack of any real case uses, the Ripple coin is here to stay. Over the past few months, the crypto-coin has even managed to consolidate the second position on the crypto charts.
It’s a testament to how promising the project is to investors. The team behind Ripple has managed to obtain many partnerships with leading financial institutions that realize they stand to benefit from the platform.
Add the fact that they have over six years of development behind them and still no other platform is trying to deliver a product that is similar to theirs yet.
When it comes to cryptocurrencies, having a strong use case determines if a project will survive or not. Judging by the number of partnerships Ripple has proved that it has what it takes to survive.
Ripple’s Native Currency Is Known As XRP
The currency that is used on the Ripple network to make transactions is known as XRP. The token is designed to help financial institutions move large sums of money across borders faster and cheaply.
When the Ripple platform was launched, there were 100 billion XRP that were created. However, only 40 percent of the total supply is currently in circulation.
The XRP token is currently the second largest cryptocurrency after Bitcoin with a market cap of 14 billion.
Ripple Coin Could Soon Be Added On Coinbase
Ripple’s native currency could soon be added on one of the leading cryptocurrency exchanges. On December 7, 2018, Coinbase announced that they were considering the possibility of adding support for Ripple on the platform.
The announcement also noted that the exchange was considering other crypto coins.
“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading.”
Since Ripple works with financial institutions, compliance shouldn’t be an issue for the platform. So, the chances are high for XRP to be added on Coinbase.