What is Ripple (XRP)?

The first thing you need to know is that Ripple is both a trading platform and a currency. The Ripple platform is an open source protocol designed to allow fast and inexpensive transactions.

Unlike Bitcoin, Ripple is not designed as a simple payment tool and will definitely handle all international transfer transactions worldwide. They’re very ambitious, but who knows what the end will be? Perhaps, as Blockbuster stores have done in recent years, all cryptocurrency exchanges will disappear in a few years.

The platform has its own currency (XRP). However, anyone who wishes is allowed to use the platform to create their own currency via RippleNet.

What is RippleNet?

It is a network developed to easily send and receive money internationally. Banks and many corporate payment companies offering financial services take advantage of this technology.

Let’s give an example to understand RippleNet better: Ahmet, who lives in Istanbul, has a box of chocolates that he does not need. He also wants to watch a basketball game but does not have a ticket. Ceren, who lives in Izmir, has a rare coin and is willing to give it for a box of chocolates. Finally, Hakan, who lives in Ankara and collects coins, has a ticket to the basketball game that will take place at the weekend. However, he will not be able to go to the game because of his job.

In the current system, these people will probably never find each other and their items will not be able to be exchanged.

But in the Ripple world, it’ll be enough for them to say, “Hey, I have a box of chocolates and I want to trade it for a basketball game ticket.” The system will then search for the shortest and cheapest combination to make this happen.

Moreover, the platform allows you to pay in any currency including Bitcoin and have a minimum transaction commission of $ 0.00001. The only reason it is not free is to take precautions against DDos attacks.

What is XRP?

XRP is a token used to represent the transfer of value through the Ripple Network. The main purpose of XRP is to be an intermediary for other cryptocurrencies and fiat (fiat) exchanges. The best way to describe XRP is with a ‘Wildcard’. If you want to convert your dollar to euro, you need to use XRP to pay little commission. Because in XRP, there are almost no commission fees for transactions. That’s why XRP acts as a wildcard in currency exchange. XRP’s commission is only $ 0.00001.

Stay tuned to SinceCoin to learn more about Bitcoin and cryptocurrencies.

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