Ripple, the new Cryptocurrency – What is it, How it Works
The new Ripple cryptocurrency is proposed as an even more reliable Bitcoin alternative; Let’s see together what it is like, what are its benefits, and above all how much it is worth.
What is Ripple, how does it work and what are its main differences with Bitcoin, the most famous cryptovalue?
Ripple is a cryptophone present since 2013, which along with Ethereum represents the true and trustworthy alternative to Bitcoin. Like all the various criptovalutes present in the world, Ripple is not a currency “present in nature” but rather exists thanks to the network.
Ripple means the XRP currency that the network where this criptovalupa operates. So let’s look at all the many features of this cryptovalue, analyzing the operation and the main differences with Bitcoin.
Recently, the oscillations of the Bitcoin cryptovalue have led the criptovalutes on all the first pages of financial newspapers. The great growth of Bitcoin, now directed to overcoming the $ 2000 / BTC resistance, has again brought a great deal of attention to the world of cryptovalues and, of course, for no more alternative solutions such as Ethereum and Ripple. So many people are wondering what Ripple is and why it is considered as the most intelligent alternative investment to do at this time.
Let’s see what is and how it works in detail Ripple, trying to understand its advantages but also its disadvantages. Here is a complete Ripple guide, Bitcoin’s # 1 alternative.
Ripple (XRP) is a digital currency that does not actually exist in material mode, but works completely on the internet. It is a currency that is in circulation since 2013, with a protocol that was founded by Chris Larsen and Jed McCaled: OpenCoin.
Ripple has as its main purpose the removal of obstacles and the many difficulties encountered by developers with Bitcoin. Ripple therefore has as its main objective the P2P system to lower (if not eliminate) brokerage costs on financial transactions (such as brokerage costs usually applied by a bank or credit card).
How It Works Ripple
Just like Bitcoin, Ripple operates in a fully decentralized environment within an open source (Open Source). This means that developers have the ability to modify or intervene according to the usage and emission rules of this cryptovalue. Ripple represents both the network and the cryptovalue itself.
Transactions made with Ripple are not traceable (while in reality with Bitcoin there are transaction logs, so-called ledgers) that allow you to see all exchanges.
A very important element of the Ripple network is the ability to exchange money and transfer it without form continuity. You can then transfer euro to a recipient, who will receive euro.
Ripple is essentially composed of three parts:
– Payment Network
How does this great ecosystem work then? To understand Ripple, you can consider it as a more advanced version of current banks, thanks to its operation and trust.
Ripple works on the trust mechanism, which is put into practice through IOU credits (which are actually the real currencies).
What is sent inside the network are credits that are then “converted” to the “Ripple gateway”. All transactions thus (which may also be called debts) must occur between those who have a bond of trust. Ripple transactions are irreversible, free and above all snapshots.
Ripple currency is in effect the only currency that is within the Ripple network, the way to measure the exchange of IOU credits. If you want to ship Euros but you own only Dollars, the recipient will buy my IOUs in dollars for a total set of Ripple, selling IOUs in Yen for other Ripples. This is how Ripple works and this cryptovalue system works.
Ripple works only within the Ripple system. The currency is divisible up to six decimal places and all Ripples have been created up to a maximum of 100 billion.