Introduction
Ripple (XRP) is a money transaction network that also specialises in cryptocurrency exchange. It is a live gross settlement machinery which first came into existence in 2012. It was invented by the technology company based out of US named Ripple Labs Inc and is endorsed by independent servers. The cryptocurrency involved in the trade is known as XRP and recently in April 2021, it’s value rose worth three times above $1. Users have the option of exchanging XRP with the currency of their choice and avoid any delay due to the bank. But however, the price of XRP will not remain static since like the other cryptocurrencies it is volatile.
What Is Ripple(XRP)?
Ripple(XRP) is not consisted of a blockchain technology but is rather made up of a hash tree, unlike the other cryptocurrencies. It has a limited supply in the market, 100 billion and hence, cannot be mined.
Ripple works on a consensus model and transactions are processed once the consensus is reached, allowing it to process 1500 transactions in a second. Bitcoin and Ethereum takes one second to process upto six and fifteen transactions respectively.
Price History Of Ripple
Jed McCaleb co-founded Ripple along with Arthur Britto and David Schwartz. Initially the company was named OpenCoin which later became famous as Ripple. Many banks had signed up to utilize the messaging capability of Ripple rather than using the XRP token for transactions. There has been unregistered sales of the cryptocurrency from which Ripple gained millions. The Security and Exchange Commission claimed XRP to be a security and blamed the Ripple leaders for unregistered sales. Despite the unregistered sales and amidst US suing Ripple for the actions, there was a surge in the price of Ripple in April 2021.
How Does Ripple Works?
Blockchain technology combines information in groups or blocks and the blocks together constitute the chain. All the transactions are recorded in the blockchain. But in case of Ripple Information is processed by multiple nodes. When someone sends money, the information that records it is given a value and is shared to a public database, endorsing nodes that share the information. When different servers identify a match, the transaction is processed. Ripple does not need evidence of work and is therefore different from Bitcoin.
Is XRP a Good Investment?
In spite of the blockchain technology, Ripple system processes transactions in a lightning speed, making it an effective alternative to other cryptocurrencies which is why banks and other institutions are exploring the use of Ripple. Ripple is not decentralised like Ethereum, Ripple has control over the servers that are accepted, and the developers can also control the system protecting it from malicious treats. The value of a single Ripple(XRP) token is $1.17 making it a good option for investment.
According to future predictions by https://www.cryptonewsz.com/forecast/xrp-price-prediction/, the price of Ripple is expected to rise upto $1.35 by 2022, $1.9 by 2023, $2.2 by 2024 and $2.7 by 2025. The value is expected to skyrocket by 2030 amounting to $28.01 per XRP token.
How to Buy Ripple
Users can buy XRP tokens at a number of exchanges. You should primarily register with one of these exchanges such as Kraken, GateHub or Bitstamp. The next step is to deposit funds and start trading. Other exchanges where you can trade XRP are Bitso, CoinOne, Korbit, Bitbank, Coincheck, BTCXIndia, and Bitsane.
Like other cryptocurrencies you can store, send and receive XRP in best cryptocurrency wallets. You can check your balance, and make transactions with the wallet. You can also link to applications, manage your XRP tokens, and deposit funds with your wallet. Sometimes, wallets also allow you to manage more than one account simultaneously. You can also buy small fractions of XRP, the smallest being 0.000001XRP.
Ripple (XRP) Price History
Ripple(XRP) along with other cryptocurrencies experienced a hike in price in 2018 and the value of a single XRP exceeded $3. In 2020, the value of XRP dropped by 90% of the hiked value bringing it down to a price of $0.19 per XRP. It was one of the worst downfalls in the value of any cryptocurrency.
Recently the value rose again, a single XRP priced at $1.17 and is expected to rise considerably in the coming years.
Conclusion
Ripple (XRP) is like other cryptocurrencies a digital currency used for money transactions but much faster than the others with 1500 transactions possible in a second. You just need a stable internet connection to be able to process transactions. The price of Ripple has also considerably risen in 2021 and will rise constantly according to predictions, making it a good option for trading and investing. Register with a XRP exchange wallet and start trading.