Ripple is a blockchain network like other blockchains (IBM Blockchain, Ethereum, Stellar, Oracle Blockchain Cloud Service, Tangle, Bitcoin, Quorum, and Blockstream). It is used to transfer money across the globe and the XRP is its native currency.
Today we will discuss all of Ripple and its native currency XRP so, let’s get started!
What Is Ripple
Ripple is the company behind XRP, it is commonly used to perform worldwide transactions at low fee rates. It comes in the replacement of SWIFT.
It is the trusted bridge between two parties to perform the transactions. After a successful transaction, a small amount of XRP would be deducted from the sender's account. It deducts a 0.5% fee per transaction and performs 1500 transactions per sec. Furthermore, it facilitates many exchanges for a variety of fiat currencies and cryptocurrencies.
What Is XRP
XRP is the cryptocurrency that runs on the Ripple blockchain network to perform successful transactions. For instance, if you want to perform a global transaction, you must have XRP in your account to perform the transaction. Once the transaction is initiated 0.5% XRP from the 100% would be deducted.
Difference Between the XRP And the Other Crypto
In another crypto, once the transaction is initiated firstly it would be verified by each node. It’s a complex process and a more secure way to validate transactions. But ripple (XRP) works differently to verify the transactions.
Here we will discuss how it works to verify the transactions:
- Unlike other blockchains, Ripple XRP’s network is a kind of centralized network. It is controlled by a centralized authority and uses an XRP Ledger Consensus Protocol to verify the transaction.
- Anyone can download the validation software, furthermore, it maintains a unique node list that the user can select to verify the transactions.
- The validator updates the ledger every 5 sec and when the new transaction is initiated. They would check whether it is matched by the other ledger or not.
- After a successful match transaction would be verified otherwise it would be discarded.
Due to this approach transactions would be done efficiently and take less time in the verification process, XRP takes an edge on another crypto like Bitcoin which is costly and takes more time to verify the transactions.
Ripple Advantages
- Fast Transactions
- Low Transaction Fee
- Used by enterprise networks
- Versatile (Use XRP, cryptocurrencies, and fiat currency)
Ripple Disadvantages
- Centralized
- A large supply of Pre-Mined XRP
Conclusion
Ripple is a blockchain network and the XRP is its currency. Ripple is used by enterprise networks to perform transactions across the globe. It performs fast transactions at a low transaction fee. Furthermore, the Ripple network not only processes XRP transactions but can also be used by other cryptocurrencies and fiat currencies.
