Have you wondered if Ripple is a cryptocurrency?’
This question gets a lot of attention, and as a result, the remittance network stays controversial.
To wrap your head around Ripple and to understand if Ripple is a cryptocurrency you may want to begin by reading our Beginner’s Guide to Ripple.
Often called the ‘poor man’s Bitcoin,’ Ripple, in reality, is much more than just a digital currency.
In fact, it is breaking the status quo.
The CEO of Elpis Investment, Anatoly Castella explains it well.
Anatoly Castella says that Ripple’s XRP token is complex, as it is neither a real digital currency nor a virtual fiat. According to Castella, Ripple does not fall under the definition of ‘cryptocurrency.’ As per the investment executive, Ripple actually combines the best of Blockchain-based cryptocurrencies and fiat money to deliver an impeccable FinTech platform.
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What is Ripple?
Ripple was launched in 2012 as the successor to Ripplepay. To know the future of Ripple, don’t forget to read our article. It was released as a comprehensive cryptocurrency platform which combines to serve as a currency exchange, remittance network, as well as a real-time gross settlement system (RTGS).
Ripple’s official website states that Ripple aims to serve as a frictionless experience to send money worldwide.
Ripple is a step away from traditional banking as it eradicates the long waiting times and hefty fees associated with transferring money through the conventional route.
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How Ripple Work?
As compared to Bitcoin’s Proof of Work mechanism, Ripple works through a common ledger which is upheld by a network of servers that compare transactions records consistently.
The distributed public database of Ripple deploys the consensus mechanism between servers to maintain integrity.
The data is collated into a single value through a hash tree. Subsequently, it is compared across servers for the provision of consensus.
What is XRP?
How Ethereum serves as the platform for the Ether cryptocurrency, XRP is Ripple’s token or the digital currency associated with the Ripple platform. One hundred billion XRP tokens were issued at the time of the launch of Ripple in 2012. To know the Best Ripple Crypto Wallets for 2018, do read our article.
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How is Ripple different?
Ripple differs from other such platforms such as Ethereum and Bitcoin because it is a centralised version of the distributed ledger technology of Blockchain.
In the case of Ethereum and Bitcoin, their systems are supported by a network of global miners. Hence nobody wields a central control over their network.
Ripple, however, differs here as the nodes, in addition to Ripple Labs, are also controlled by financial institutions.
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