An Insight into Ripple and the Reasons for Its Rapid Increasing Value

Since the time of its advent, Ripple has always been talking of the town amongst the investors and analysts alike. It showed over 35000% growth and held a market capitalization value of 118 billion dollars in the last year. Even though it has become a talked-about cryptocurrency, many people are still unaware of Ripple. Before we delve further into the matter, let us discuss a brief synopsis about the cryptocurrency and its importance in the industry.

What is Ripple?

Founded by Chris Larsen and Jed McCaleb, Ripple is a payment solution provider. The Ripple Transaction Protocol or the RTXP holds the cryptocurrency XRP. It offers the most affordable, reliable, and fastest transaction solutions for every financial institution. While the company has produced about a hundred billion XRPs, it holds the stake of 61% coins. Currently, they are planning to release a further of 1 billion coins every month.

What is the difference between Ripple and Bitcoin?

• Both Ripple and Bitcoin are cryptocurrencies using blockchain technology. However, there is one fundamental difference that distinguishes the two. Why Bitcoin can be mined, Ripple does not hold the probability. It is not created to be a mineable currency but is only redirected towards the Ripple network usage.
• There is, however, one similarity that draws both Bitcoin and Ripple on the same page. Both cryptocurrencies validate ledgers by using the validating nodes. In this regard, it needs to be mentioned that while Bitcoin has about 10,000 trusted nodes, Ripple has only five. However, the company has assured to add 11 more search notes over the next few months.
• Ripple has exclusive control over all the five validating nodes. This is the reason why investors and analysts have criticized the absence of independently trusted validators of XRP. Becoming validated by the XRP is not difficult. Anyone can download the XRP ledger from the internet and try their luck. This is also the reason why several companies run their nodes on the Ripple network.

Reasons for a terrific hike in prices of Ripple

• The hike in prices of the XRP is not a matter of a day. Analysts think that the recent hikes showcase the enthusiasm of different financial institutions and investment in its usage. It has a lot to do with believe-the-hype investors.
• Since its launch, Ripple has been successful enough in giving different banks its customer base. It provides real-time communication and quick correction option. This has contributed immensely to reducing the delays of bank transactions, making it preferred by most financial institutions.

The bright future ahead

The company has already introduced a new product, xRapid, in lines to the XRP. This provides an additional opportunity to banks for using XRP. The currency is gaining immense popularity amongst investors who find it a potential financial vehicle for banks worldwide.

The final words

Ripple is finding predominance as a rising cryptocurrency. It has a different role to play than Bitcoin as the founding company itself controls it. It’s will mostly be used by the different banks and is speculated to increase in value.