what is ripple?

Everything you need to know about Ripple

Ripple is a platform or an open-sourced protocol that is shaped to help users make fast and cheap transactions. Although Ripple is not just a platform, it is a currency. It comes in the same category as that of Bitcoin but Ripple is more sophisticated and preferable. In genuine, Bitcoin is a complex payment machine that Ripple is not. For this, the creators and even the users of Ripple claim that it is going to rule the global transactions globally.

Ripple as a platform has its currency in the form of XRP but still, it allows people to create their own using the platform via RippleNet.

About RippleNet

Certain foundational payment-providers make use of Ripple for payment. Such banks and other money service businesses that are using techniques manufactured by Ripple are connected with a network called RippleNet. The providers associated with this network get a flawless experience to send money globally. It allows people from even remote areas to communicate with people globally.


When the transference of value is done across the Ripple Network, it is XRP token that represents it. It is nothing but a mediator for other cryptocurrencies and other flat exchanges. The right word to describe XRP is ‘joker’ in the sense that it depends on you what you want to make a joker as it can be changed into any other card. It reduces the commission by taking the form of the currency to be changed with that currency. For example, it can be dollar with dollars and Euro with Euros when you want to exchange dollars to the euro.

Facts to know-

  • The cost of transaction on Ripple is $0.00001. It is just as free but not exactly ‘free’ to prevent DDOS attacks.
  • With this platform, one can make payments in any currency. You can make it in Bitcoin or any other currency that you want.
  • This amount of $0.00001 gets disappear soon after the transaction is made. It can’t be restocked that means with every transaction $0.00001 get reduced from the world’s economy but, for a reason.

About the Creators and Investors

Although this protocol working as a prototype was created in 2004, the real history began in 2013. In this year, Jed McCaleb took a major step towards the development of Ripple Labs. He attracted a bunch of world rank investors to spend in Ripple Labs.

Jed McCaleb is the creator of the EDonkey network, a well-known programmer and an industrialist. About 70% of all Bitcoin transactions worldwide are handled by cryptocurrency exchange Mt. Gox which is co-founded by Jed McCaleb. Besides co-founding Ripple, he has co-established Steller and Overnet.

Chris Larsen is the founder of Ripple Labs. His achievements and occupations are versatile. Along with being an angel investor, business administrative, and privacy militant, he is also the richest person in cryptocurrency. He started his career in 1996, creating an online finance lender, E-loan. Till now, he has founded several startups in the field of pecuniary services.

Investors of Ripple

Investor Banks

  • Santander
  • Axis Bank
  • Yes Bank
  • Westpac
  • Union Credit
  • NBAD
  • UBS

Ripple Protocol Consensus Algorithm (RPCA)

Cryptocurrencies require Blockchain for functioning. Bitcoin and Ethereum have blockchains for verifying if everything happening during the transaction is fine. But, Ripple is a cryptocurrency without a blockchain. How is it possible? How does it check and verify the appropriate functioning of the system? Here comes the use of the Ripple Protocol Consensus Algorithm or RPCA.

RPCA is the original technology owned by Ripple for doing the same job as that of a blockchain. It is consensus since the process works on an agreement. If every node is in agreement with all the rest, there is no problem in the functioning of the system. If one disagrees, the system needs modification. It is the same as the agreement trend followed in the antique field for deciding on a particular topic. A group of a certain number of experienced wise men used to make agreements upon the matters like should the war be started/ended, should the taxes rise and other sorts of interesting stuff. The agreement could move in the opposite direction if even one of the men says no to the agreement.

Uses and Benefits

•    For currency exchange at low commission

It is a matter of fact that not every currency can be converted to another sort of currency directly. Traditionally, banks use USD as a mediator to convert one sort of currency to another by converting the owned currency to USD and then converting this USD into the desired currency. This procedure of first converting into USD is quite costly. In RippleNet, Ripple is a mediator of exchange. It works the same as USD but at much cheaper rates (already discussed).

•    For fast international transactions

Regular banking systems take a few days in making the transaction, Bitcoin takes an hour or more for the same whereas Ripple takes only four seconds on an average for doing the job. Simply great!

•    For payment ecosystem

It allows users to make their currency. By doing so, they can make cheap and further quicker transactions.

•    For a power-safe payment system

Ripple is deliberated as a day to day payment system which indicates that it is much more secure than Bitcoin. This is the reason for quicker and cheaper transactions.

•    For reducing payment complexity

Ripple has its main focus on making itself usable by the banks. For this, it has started an official organization. All this results in reducing the complexity which is subject to multiple regulation checks alike many other cryptocurrencies.

•    For exchanges with a unified minimal commission

Ripple can be exchanged to any currency or valuable with a amalgamated negligible commission.

Ripple: a good investment or a bad one?

To decide upon whether ripple is a good investment or not, you must read the below-stated pros and cons of using it.


  • It is an official organization trusted by many reputed banks and not an unnamed blockchain startup from an unrecognized company.
  • The tokens are mined from the beginning and they do exist hence, no inflation.
  • The XRP value of Ripple increases with an increase in the number of banks using this platform for transacting their money.


  • Although the cryptocurrencies aim to avoid centralized control, Ripple is highly centralized. Since the tokens are already mined, the time and amount of releasing or not releasing the tokens rely on the developers.
  • Ripple Labs have possession of 61 percent of the coins. Hence, it is a monopoly.
  • Open source makes the cryptocurrency smart but it also increases the risk of your transaction getting hacked. There are chances of hacking once the code is within reach of the destination.

The pros might have insisted you invest in Ripple and on the other hand, reading further the cons part, you might be thinking about leaving the idea of investing in it. It happens. But actually, no investment can be considered to be 100 percent safe. Whatever decision you’ll make, it will have its risks. The best way to deal with the situation is to read the reviews.


Ripple claims that there are a bunch of respectful banks which are using Ripple for transacting. Well, according to the Financial Times, most of these respectable banks are still on the testing stage. And the rest who make real money do so only through the platform of Ripple and not through the Tokens. Also, the cryptocurrency is claimed for freezing the transactions.

Ripple’s Future

Legends in the field of cryptocurrency have different views on Ripple’s future. Read the sayings of certain highly experienced professionals to gather more information.

  1. “Ripple certainly has the potential to move up a notch in 2018, but I think it will be more likely in 2019. As the market observes more projects being coded in other algorithms such as XRP, ETH will likely take a backseat to the next big coin/token. It will take some time for the markets to digest this, so I am projecting 2019 to be the likely time for it to take place. Of course, with crypto, anything can happen, so watch closely.”  

                  Roman Guelfi-Gibbs, the CEO and Lead Systems Designer for Pinnacle Brilliance Systems Inc

  • Ripple is unlikely to go up by one or two notches in the cryptocurrency world in 2018, and this is the case for three reasons. The first reason is the sheer dollar volume that separates each of the three currencies in the top positions, in terms of their market cap. Bitcoin is at over $191 billion, Ethereum is at over $84 billion, and Ripple is at over $35 billion. To displace Ethereum would require a deficit of about $49 billion to be closed (which is more than double Iceland’s entire national GDP). The second reason is that the use cases for Ripple are mostly for the trade of assets, not for day-to-day spending. As consumer awareness of cryptocurrencies will rise significantly in 2018 and beyond, the interest of the masses will be on cryptocurrencies that can be used as currencies, not just for investment transactions. Finally, the third reason is that because Ripple cannot be bought with fiat currencies, one must purchase existing cryptocurrencies such as Bitcoin and Ethereum to purchase XRP. This goes on to feed demand for Bitcoin and Ethereum, and will only solidify their positions as the top two cryptocurrencies on the market.

                            ShidanGouran, president of Global Blockchain Technologies

  • Although currently there isn’t a platform to exchange fiat currency for Ripple (XRP) this may change sooner than you think.”

                                     John-Paul McCaffrey, associate director at Long Island University

  • Though not a cryptocurrency at all, it is the child of banks. So it’ll get the natural bump from [the] 2018 Recession.”

                                       Samson Williams, CSO of Ireland-based fintech firm SeedUps