After the crypto era started with the innovation of the first cryptocurrency, bitcoin, the developers haven’t stopped creating and upgrading new digital currencies to make life more convenient. The payment method, which was only dependent upon a centralized system known as the banking system, can now also be done without any central control. Creating crypto, which is a decentralized digital network, has made it possible.
The crypto market is flooded with more than 10,000 cryptocurrencies. This highlights the growing inclination towards the crypto market, and if you plan to make an investment, you must explore the best option. However, as there is no end to how much you can modernize things, neither is there a limit to how convenient a payment system can be. There is always a lack, and new cryptocurrencies are introduced daily to fulfill that requirement. Ripple is such a cryptocurrency that it is known to be the best one to make payments smooth, super-fast, and convenient.
About Ripple- The network and history:
Ripple is a cryptocurrency that is used in cross-border transactions to make payments faster. Though Ripple is generally known as a cryptocurrency, the actual native cryptocurrency of the Ripple network is XRP.
This cryptocurrency (XRP) is generated within the Ripple network, which helps transfer fiat currencies and other cryptocurrencies from user to user. This network is mainly used in banks and other financial institutions where every type of transaction is done, like small or large amount transfers, specifically because these are needed to be done as quickly as possible, and Ripple offers a super-fast transaction.
For this reason, Ripple was created. In the traditional banking system, you need to wait for almost 3 to 4 business days to send money internationally. Over that, you need to pay a high amount of transactional fees. To reduce this problem, Ripple Lab was created to reduce this problem, which was the original name of the company currently known as Ripple.
At first, Ripple Lab created a network known as xCurrent. It was a decentralized protocol with unique node lists to form its network. Transaction through this network was fast, easy, and also cheap. American Express, one of the largest and best-known banks, and more than 50 other banks are using this current network to transfer their customers’ money internationally.
But the latest product of Ripple Lab is Ripple which was introduced in 2012. This network, or the version of it, is the fastest one that is the currency used by the banks.
How does the cryptocurrency Ripple work?
Ripple is a Blockchain-based network, but from other cryptocurrencies, it works somehow differently. Where other cryptos use PoW or PoS methods to verify their transactions, Ripple uses a separate process known as a Unique Node List. Here the difference between Ripple from other cryptos is this verification process makes the network a bit centralized.
Some selected users who are in charge of the verification process download the Ripple Lab software, and during the process, they decide which transaction needs to be verified and which does not. However, there are some criteria. The selection must depend upon the analysis of the users and the transactions, and only those who don’t seem to be fraud are selected.
After every 3 to 5 seconds, the validators update their ledger, which is full of transactional data, to see whether they match one another or not. Once they match, the validators verify the ledger or the transactional data. Otherwise, they don’t verify it because a mismatched ledger is considered an unsecured transaction. That is how the Ripple network’s data gets verified, runs, and remains secure. However, the validators are not rewarded for the job, unlike bitcoin mining.
Conclusion:
The Ripple network is an upgraded technology used for fast and economic transactions. More than 50 large and reliable banks use this network to transfer their customers’ money internationally. So, you can understand how advantageous this technology is. Other than that, Ripple is also used to transfer several other cryptocurrencies and is also used as a trading asset. You can put a ripple in your investment portfolio with bitcoin or other cryptos and trade them with reliable software like Ethereum code.
