What is Ripple?
You would know that in recent time crypto currencies have attracted a lot of attention. Out of the numerous Crypto Currencies out there Bitcoin of course has been one of the most popular ones. However apart from the Bitcoin there are many others which have been in use and gained a lot of popularity as well and are being traded aggressively by many to make significant gains.
Ripple is a Digital Currency as well denoted with the symbol “XRP”. However apart from being a digital currency Ripple is an open payment network, within which currency is also transferred.
The basic objective of Ripple
As per the official website of Ripple, the main goal of it is to provide freedom from the walled gardens of conventional financial networks like credit cards, banks, PayPal and other institutions.
These conventional financial networks are ones which might charge fees for currency exchange and may even cause delays in processing.
What Ripple does?
The basic aim why Ripple was created is address the problem of the various challenges that people face while they want to transfer money. Often it is seen that people worldwide get frustrated owing to the various impediments that are created by banks and other financial institutions for transporting money with the various charges which are often involved. The main objective of Ripple is to build a decentralized money system that allows the free flow of money.
Ripple is to money as internet is to information
It could easily be said that digital currencies like Ripple and Bitcoin is to money what internet is to information. If you recollect in the 1980s people were using emails where in they could interact with one another. Accordingly each email provider developed their own systems. However users of different users could not connect with one another. Much in the same way Ripple is designed in a way that so that different payment systems can be connected together. It is being felt by experts that gradually with such systems dominating the financial systems big companies would lose control over the flow of money. They opine that would happen in the same way that some people lost control over the flow of the information with the emergence of the internet.
How Ripple Works?
The Ripple as already mentioned is both a crypto currency as well as a payment network which was created way back in the year 2012. Through the Ripple Network Banks and other large institutions can easily connect for transferring money as well as other assets. The transactions which are made on the network are noted on the decentralized XRP ledger. The Ripple XRP is the legal tender used in the payment network reduces the money and time which is associated for cross-border transactions.
Transactions time for Ripple XRP is lower
In comparison to other crypto currency systems like the Bitcoin or Ethereum the transactions on the Ripple XRP network takes much lesser time. For example in case of the Ethereum the time taken is more than 2 minutes and in case of the Bitcoin it takes more than an Hour. On the other hand the more conventional systems these transactions take about 3 to 5 days. In case of the Ripple network the processing time for the same is only about 4 seconds. Thus in terms of payments the Ripple offers a great benefit as the transaction time is very low.
The Ripple Currency is Scalable
Another great advantage for the Ripple is that the currency is scalable. The Ripple Currency system is so efficient that it can manage up to 1500 transactions per minute. The Bitcoin in comparison can handle only about 7 in an instance.
Ripple offers low transaction cost
The great benefit about Ripple is that it offers a very low transaction cost. It is because of this significant benefit that at present the Ripple System is being used by over 75 financial companies globally.
How the Ripple differs from the Bitcoin?
The Ripple is a payment System for financial institutions and is in competition to the more traditional systems like the SWIFT. This is at the same time a digital currency which could also be traded at the same time. It is however not meant for payment method for buying things on line. Bitcoin on the other hand is intended to be an internationally adopted currency for improving or even replacing conventional money which is mainly used currently.
Trading Ripple India
Being in India you would obviously be interested to know about trading in Ripple India. In the current year Ripple Labs has tied up BTCX India for trading in the currency crypto currency in India. In fact with this tie up the users in India can now access XRP for trading. This digital asset through the listing on the BTC exchange is expected to grow very big India with in a very short period of time.
Scope of investing in Ripple
At present the Ripple Price is lower than the value of Bitcoin and Ethereum. However there is great potential for the Ripple Price to rise greatly in the future. At present all the Coins – 100 Billion have already been created and about 40% of the same is in circulation at present. Whether Ripple can be a good investment currently is indeed difficult to say. It is true that this Crypto Currency has gained a whole lot value ever since it was launched. However whether this trend of the rising price of the Ripple would could steadily in future is very difficult to predict.
When could Ripple Price Sky Rocket?
In India it is to be seen whether Ripple can bring in more and more banks and financial intuitions to its network and thereafter the transform the entire financial sector, then the price of Price would surely rise very rapidly in the future. So as an investor this could indeed benefit largely if this happens. However in case this case if Ripple is unable to bring in more financial institutions to its payment network, then on contrary you could have a major drop in the price of the Ripple. This could mean that you might incur a massive loss.
In conclusion we hope that we have been able to provide you with certain essential information about the Ripple and the Ripple meaning is fairly clear to you. In India you could also trade in Ripple. However in case you want to trade in Ripple in India. However much like all users your entire investment while trading may be at great risk. So you must invest in Ripple only if you have a large risk appetite.