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 like other cryptocurrencies. Ripple coins are also known as the 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. Ripple Inc is founded in 2012 and has offices in Australia, Luxembourg, and United Kingdom. Ripple is developed in an open-source protocol and supports not only cryptocurrencies but also fiat currency and commodity transactions.
This crypto coin is developed to create a system of direct asset transfer in real-time. 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. This makes ripple a decentralized system of secure payments.
Advantages of Ripple over Bitcoin and other cryptocurrencies
The advantages of Ripple over bitcoin and other cryptocurrencies are pointed below. 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 which is about 3-5 seconds per transaction.
- The total supply of ripple coin is about 100 billion coins.
- The 100 billion coins in the ripple network are pre-mined. 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 which 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.
- Unlike any other cryptocurrencies, a new ledger of Ripple is created each second.
- Ripple network is managed by a range of independent servers comparing their transaction records constantly.
Like all the other cryptocurrencies, ripple also has a transaction charge of about 0.004 USD. Transaction charges are also charged in the form of crypto coins. Ripple network is mainly utilized for transactions of commodities like gold, oil, etc. It is also used by merchants as a form of secure payment in a similar way using bitcoins. The value of ripple coins is very small because about 60% of ripple coins are owned by the founding company Ripple Inc.