Ripple Coins - Mediator For Other Cryptocurrencies

Ripple Coins – Mediator For Other Cryptocurrencies!

Bitcoin is said to be the most popular and valuable digital currency based on a public blockchain ledger. Ripple coin is emerging as a competition to the bitcoin network as a more fast and secure payment method.

This article gives you information on Ripple coins, which is not much familiar to you as other cryptocurrencies. Another name for ripple coins is “mediator” for other cryptocurrencies. Let’s dig out more about this coin. 

An overview of Ripple coin and payment protocol 

Ripple uses an XRP payment protocol which is developed as a form of secure payment and currency exchange developed by Ripple Inc. The United Kingdom, Australia, and Luxembourg are the locations of Ripple Inc.’s offices. Ripple is an open-source system that allows not only cryptocurrency transactions but also those involving fiat money and commodities.

Ripple Coins - Mediator For Other Cryptocurrencies

The goal of creating this digital money was to create a real-time, direct asset transfer system. Ripple uses a consensus mechanism for the validation of transactions. The servers or nodes use polls to decide the validity and authenticity of the transactions. This increases the speed of confirmation of every transaction without any central authority. As a result, Ripple is a decentralized mechanism for safe transactions.

Advantages of Ripple over Bitcoin and other cryptocurrencies

Below are several advantages that Ripple has over other cryptocurrencies like bitcoin.Check it out.

  • Ripple coins also have an energy-efficient system that consumes energy less than the bitcoin network for each transaction. 
  • The transaction time is also very low about 3-5 seconds per transaction. 
  • The total supply of ripple coins is about 100 billion coins. 
  • Pre-mined coins make up the 100 billion on the ripple network. This doesn’t provide a chance for the miners to mine new currencies as in the case of bitcoin. 
  • In order to control the flow of coins, ripple uses an inbuilt smart contract that releases about 1 billion coins to the market every month. Currently, there are about 43 billion ripple coins in transactions. 
  • In order to prevent misuse and oversupply of coins, any unused portion of coins in a particular month is transferred to an escrow account.
  • In contrast to other cryptocurrencies, Ripple generates a fresh ledger every second.
  • A number of independent servers administer the ripple network, continually comparing transaction histories.

Final Verdict On Ripple Coins – Mediator For Other Cryptocurrencies

Like all the other cryptocurrencies, ripple also has a transaction charge of about 0.004 USD. Cryptocurrency coins are another sort of transaction fees. Most transactions on the Ripple network involve the trade of commodities like gold, oil, and other such products. Similar to how they utilise bitcoins, businesses use it as a secure payment method. Due to Ripple Inc.’s ownership of almost 60% of all ripple coins, the value of ripple currencies is quite low.

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