The world’s number three cryptocurrency, Ripple, is also one of the most talked about nowadays. According to many, it is the only cryptocurrency that has proven itself in real-world utility. In fact, while most other altcoins are still trying to create some awareness about their network and partnerships, Ripple’s technology is already being used by major banking giants and other payments platforms across the globe.
So what makes Ripple so special? To understand this, we need to understand a few basic things about Ripple itself.
The Basics of Ripple
The first thing we need to understand about Ripple is the difference between the company that created the network, the cryptocurrency that powers the technology and the distributed ledger technology. These not the same. Which is why there can be a lot of confusion when people talk about “Ripple”.
First – the Ripple Company. This is a US-based technology company called Ripple Labs, Inc., which develops the Ripple payment protocol.
Second – the technology, also called the Ripple Protocol. This Ripple Protocol is an RTGS – a Real Time Gross Settlement – system, a currency exchange as well as a remittance network created by Ripple Labs, Inc.
Third – the cryptocurrency, called XRP, is the token that is issued which uses the Ripple network for transactions.
So Why Should You Favor Ripple?
That lengthy introduction is directly related to why Ripple is one of the top cryptocurrencies as well as networks in the world. Let’s explore some of these reasons:
Fantastic Marketing Strategy
Because of the considerable influence that Ripple Labs has over the protocol as well as the cryptocurrency, it decides how the network should be used. Ripple Labs’ aim has always been to position its cryptocurrency and network as the go to protocol for international transfers (via banks or other financial institutions) and global wire transfer services (such as what Western Union offers its customers).
This might not seem very democratic, but it is because of this very control that the company has ensured the Ripple network as well as cryptocurrency’s longevity and success. Thanks to Ripple Labs’ influence and connections, the network is now being used – real time – by corporate giants such as Santander, Walmart, the Central Bank of Saudi Arabia and SBI in Japan. In fact, more than 75 banks have already adopted Ripple as their network of choice for international transfers.
And because industry leaders have adopted XRP and the Ripple protocol, there is a demand being created for the technology and the cryptocurrency. Which in turn is leading to more stability, growth and adoption.
Speed, Affordability and Reliability
Unlike Bitcoin or Ethereum, whose transaction fees and transaction times are still extremely high, Ripple’s network can conduct transactions in seconds and the fees are just a few cents.
The entire network and its technology were designed to offer lightning-fast transactions which were affordable as well as reliable. In this sphere, Ripple beats almost all competition.
For decades now, banks have been using the Swift system for international transfers. However, with the advent of Ripple, people can get the same service at much cheaper prices with transaction times being counted in seconds rather than minutes, hours and days.
XRP is Still Affordable
And if people are looking at trading in XRP, then this altcoin is still extremely affordable. At the time of this writing, XRP’s price in the market was at $0.673799 per token. In contrast, Bitcoin, despite being in a slump, is still priced at $7621.28 and Ether is at $605.03 – not something many people can afford.
Ripple’s Entities Are Independent of Each Other
The interesting thing is that each of these three entities can work without the other. If the company were to disappear now, XRP would still survive as a cryptocurrency. And companies that use the Ripple network do not have to use its cryptocurrency. And, well, Ripple Labs is a company independent of both its network and cryptocurrency. This means that if one fails, it won’t bring two the other two – which actually adds to the stability Ripple offers.
If you are planning on investing in the cryptocurrency market then make sure you do your homework before you take the plunge. Ripple is definitely a strong option for investment, but remember, markets fluctuate. Therefore, think carefully before you invest your hard earned money in a volatile market such as this.
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