What is Ripple?: How would you transfer funds to an international account? You can use a third-party service or platform like PayPal or SWIFT to make such international transactions. Similarly, Ripple is a digital payment network used by some financial institutions. It was founded by Chris Larsen and Jed McCaleb, and Ripple can be used for fiat currency and cryptocurrencies. If you are interested in crypto trading or metaverse token trading, try a new trading app https://bit-qt.app/
Ripple is not a cryptocurrency and it is a company that has a crypto asset named XRP. It is a crypto token that can be used to transfer cryptocurrencies between two different networks. It is a faster payment process where you can make a transaction with a digital currency at fewer fees.
Things to know about Ripple:
Before you use Ripple, you need to know some basics about this payment network. Here, you can find some factors that you need to consider:
- Most cryptocurrencies are using blockchain technology and users can use blockchain mining to add a new block to the network of a cryptocurrency. But, in the case of Ripple, a consensus mechanism is used and Ripple uses bank-owned servers to validate the transactions.
- XRP is the cryptocurrency owned by the Ripple networking system. As there is no mining process required in a Ripple network like bitcoin, less energy is required and it does not affect the environment. Apart from that, bitcoin transactions can take more time and energy than XRP, and you need to pay a hefty transaction fee for the same. You can save time and cost by using the Ripple network.
- Ripple is an open-source decentralized network where you can transfer your funds in any form. For example, you can use dollars, euros, or Yen on the Ripple network, and you can also use the same network for different types of crypto transactions. Ripple supports major cryptocurrencies including litecoin and bitcoin.
- There is no bank or central authority that can control cryptocurrencies and you cannot use your digital assets in your bank. You cannot deposit your bitcoin or any other crypto in your bank account and you cannot use the same blockchain for baking transactions. Ripple is the only network that is used by banks and crypto-assets. Major banks and financial institutions are using ripple for their transactions.
What is a Hawala method?
Do you have any idea about a hawala method? It is a conventional money transferring process used by the people. For example, you can give your funds to an agent and share a password with your agent and the receiver. The agent will connect with another agent located in the city where the receiver is living and the second agent will transfer the funds to the receiver’s account. But, in this case, the agents charge some transaction fee.
Ripple is similar to the hawala money transferring process, but it is secured and a little complex in nature. If you want to send money through an agent then you have to take the risk because your agent can steal your money. In the case of Ripple, you do not need to depend on an agent and you can use the Ripple network to transfer your money directly from your account to the receiver’s account.
Why would you use Ripple?
Ripple has a digital currency called XRP and you can use this crypto as an investment option. But, Ripple is known as the money transferring network where people can use fiat and cryptocurrencies. For example, you can make a transaction with bitcoin through the Ripple network and it is not necessary to transfer the funds to another user who has a bitcoin account. You can convert your bitcoin into fiat currency and transfer the funds to the receiver’s bank account.
Apart from that, Ripple does not use PoW or PoS, and all transactions made through Ripple are run through a consensus protocol, which is done by a group of bank servers. Each transaction through Ripple can take a maximum of five seconds, and all transactions made through Ripple are stored in the Ripple consensus ledger, which is a form of blockchain.