Ripple cryptocurrency reviews
What is the Ripple technology platform built on
Ripple is a globally distributed payment and exchange system within which the XRP cryptocurrency of the same name operates. The project was launched in 2012 by Ripple Labs, open source with its own RTPX (Ripple Transaction Protocol) protocol. Founder – Canadian programmer and entrepreneur Jed McCaleb. He is also the creator of the ill-fated crypto exchange MtGox, hacked by hackers in 2014, with a lethal outcome. However, he sold it long before the break-in.
Pros and cons of Ripple
So, let’s see what advantages XRP cryptocurrency has over Bitcoin and regular bank transfers.
- Ripple has real practical applications in the financial sector, which means that the value of the XRP coin has a fundamental basis.
- Transactions on the network are an order of magnitude faster than Bitcoin, not to mention the SWIFT system:
- Equally important is the price advantage: the cost of the transfer is not comparable to the bank commission, the reward is only 0.000001 XRP from each transaction. This is a security price that makes massive hacker attacks on the registry prohibitively expensive.
- Coins are not subject to inflation: all tokens have already been produced and new ones cannot be mined. Moreover, they are destroyed by the network immediately after the transaction, thereby reducing their total number.
- To make a payment in bitcoins, the user does not need to buy or store BTC. Thanks to the bitcoin bridge built into the gateway network, it is enough to make a payment directly from a dollar card. At the same time, the anonymity of the payment is preserved, just like on the blockchain platform.
- The open API is also an advantage: it allows new participants to write their own applications for the network, and XRP – to expand the list of network participants.
- Conducting transactions depends only on the trust of the members of the association and does not require mining resources. Therefore, the XRP network uses less energy, which is an important argument for the influential environmental lobby in developed countries.
Disadvantages of Ripple
- Translated from English, ripple means “ripple, ripple”. The name clearly contains a hint of circles of waves propagating from the center. XRP is clearly not in line with the principles of network decentralization. Ripple Labs owns 67.75% of the 100 billion tokens. This means that at any time developers can throw a large batch of coins onto the market and devalue them. The ability to manipulate the rate is what prevents Ripple from competing on an equal footing with Bitcoin.
- If XRP has not dropped below 4th place in terms of capitalization for a long time, then in terms of trading volume it is only in 8th place. This is an important indicator of popularity with users and a sign of the centralization of the system, when developers decide how many coins to put into circulation.