Ripple (XRP)

The #3 Ranked Coin on CoinMarketCap.com

By: ThinkAltcoin.com

1. General

According to Ripple.com’s whitepaper, RippleNet delivers a single, frictionless experience .” In simpler terms, Ripple’s network removes the need for unstandardized and centralized banking systems with its single, global group of banks that provide real-time messaging and completion of transactions. Ripple strives to provide better connectivity across payment networks, faster transaction speeds, real-time tracking of payments, and low operation costs. In essence, Ripple wants to update the payment infrastructure.

Ripple was created by Ripple Labs, with Jed McCaleb and Chris Larsen as co-founders of the company.

Although Ripple is similar to Bitcoin in that it is based on peer-to-peer transactions without third party watch, Ripple Labs has considerable influence on the Ripple network. Ripple Labs currently owns billions of Ripple, which means that it could drastically influence Ripple markets and prices with selling and buying Ripple.

RippleNet is a system that gathers current standing banks to join their network, in order to systemize payments and transactions. Ripple brings in banks like Bank of America, Royal Bank of Canada, and Bank of Mitsubishi to allow cross-border payments through its advanced blockchain technology. Once the banks have been linked on RippleNet, Ripple Labs hopes to bring in actual citizens and individuals to adopt Ripple as the currency for worldwide currency exchanges.

Yes! RIpple actually has one of the greatest chances to be used by people. With its ability to combine banks worldwide into a single network, Ripple has the ability to decrease transaction speeds and costs, while simultaneously improving currency communications between different countries, allowing individuals to utilize Ripple with nearly zero fees and quick service. Furthermore, banks can cut costs on holding wealth in locations and protective services by using digital currency that is independent from any one government.

Ripple cannot be mined; the 100 Billion XRP has already been minted by Ripple Labs can only be acquired through purchase through an exchange. Now that Ripple has been more spread, there are other ways like faucets or giveaways to earn small amounts of Ripple.

For the most part, Ripple is anonymous. If you were to purchase or sell Ripple through actual bank accounts with currency like USD or Euros, then it can be tracked by the government. However, if a transaction was made with other cryptocurrency like Bitcoin it would remain anonymous besides the ledger marking the settlement.

100 billion XRP.

2. Economics

Similarly to paying with cash (in this example, I’ll use US Dollars), you would simply send your Ripple from your wallet to another person’s address (I’ll discuss wallets further below). Receiving Bitcoins is similar, just like how someone else would give you cash for you to put in your wallet, someone else will send Bitcoins from their wallet to your wallet’s public address. Unlike Bitcoin however, Ripple can only be sent through whole amounts, while Bitcoin’s can be sent in decimals (one satoshi is .00000001).

The greatest value of cryptocurrency like Ripple is its ability to combine the world’s banks into one currency communication network. Because most currencies are dependent on a countries economy, currencies can quickly lose value due to a countries political unrest, and require conversion between those value differences. Ripple however, allows the ability for one currency for banks across the world, allowing quicker and cheaper transactions.

Furthermore, its value is increased with every bank that adopts the coin. As more and more banks join RippleNet, it only increases the connectivity of the currency, ensuring that the currency will continue to have value and appreciate in value.

Since Ripple is still new, volatility occurs in its markets. Ripple hasn’t been actually tested on the real market. It hasn’t been as heavily used as Bitcoin. Furthermore, if banks don’t join RippleNet, the value of Ripple will greatly depreciate. The success of Ripple, more so than most currencies, greatly depends on adoption by banks, and then by the global population.

Furthermore, its value is increased with every bank that adopts the coin. As more and more banks join RippleNet, it only increases the connectivity of the currency, ensuring that the currency will continue to have value and appreciate in value.

Ripple Labs is one of the most transparent companies heading a cryptocurrency. In addition, due to their connectivity with global and government backed banks, and since Ripple Labs has an immense stake on Ripple’s success, Ripple has definitely proven to be trustworthy.

3. Use

The Ledger Wallet is definitely the safest bet, but it’s also one of the most expensive wallet out there. For beginners, Binance or Bittrex would work perfectly, to store smaller amounts of Ripple, with easy methods of exchanging for other cryptocurrencies.

Bittrex and Binance provide the ability to store and exchange Ripple for USD and other coins, and while not as safe from hacks as a Hardware Wallet may be, has easy access for transactions and purchases.

Guarda is a multicoin wallet that also supports Bitcoin. It has options for an online website wallet (an even easier storage option but not nearly as safe) and a software download wallet that provides greater security.

Guarda is a multicoin wallet that also supports Bitcoin. It has options for an online website wallet (an even easier storage option but not nearly as safe) and a software download wallet that provides greater security.

Trezor Wallet: The Trezor Hardware Wallet is one of the safest storage methods for cryptocurrency. Cold Storage options reduces 3rd-party risks and cybersecurity risks by acting like a USB that is unable to be hacked from online or through the WIFI.

The way to lose Ripple is to forget your password to your virtual wallet or to get your account shut down/hacked. If you lose Ripple in these ways, there is unfortunately no way to recover it. Most of the times the Ripple that is lost remains lost and that amount is taken away from the world pot of Ripple. However, because there is a limit on the amount of Ripple to be produced, the value of each remaining Ripple will rise.

4. Future

Ripple’s popularity depends upon the adoption by major banks. Large banks like Merrill Lynch and Bank of Mitsubishi have already adopted the Ripple platform, only expediting the Ripple adoption process. With Ripple already a leader in the cryptocurrency industry and its essential qualities of being able to have long term stability, low barrier of entry, quicker transactions, and lower fees, Ripple definitely will continue to have a future.