Irrespective of whether you are new to the cryptocurrency realm , or have been a participant since inception, it’s likely you have made acquaintance of Ripple as well as the cryptocurrency XRP. Although, for the uninitiated it’s forgivable to confuse Ripple with XRP, it’s still important to see the differences between these separate entities. That’s the lacuna that we shall be filling - Ripple and XRP are not the same. 

Defining Ripple 

Essentially, Ripple is the creator of the Ripple Consensus Ledger. which enables Ripple to perform both as a platform as well as currency. Dedicated to providing users with a plethora of benefits, Ripple developers decided upon the use of an open-source protocol.  Numbered among the benefits are fast, inexpensive , and secure transactions. 

Unlike Bitcoin, Ripple will not work simply as a currency. Ripple was not envisaged as a means to circumvent existing financial systems. Rather, it was meant to own an entirely new niche all of its own. Developers fabricated Ripple so that the gap betwixt orthodox financial institutions and the blockchain sector could be spanned. 

Ripple (or even XRP) is different from all of its contemporaries. It is noteworthy that it was brought into being courtesy a for-profit private enterprise. 

Ripple started creating ripples from 2013, its inception year. The helmsman behind Ripple, Jed McCaleb, has been associated with crypto-currency start-ups such as Overnet and Stellar. 

Ripple labs 

Ripple Labs developed the Ripple Payments protocol. An earlier moniker was ‘opening. However, the company soon decided it liked the christening better as ‘Ripple’.

The lab was founded by Chris Larsen, a privacy activist and angel investor. He has been better associated as co-founder of E-Loan, an online mortgage lender. He joined forces with McCaleb. The latter was linked to Mt. Gox exchange, for quite some time the primary bitcoin exchange in the world. McCaleb had cut his links with Mt. Gox at the time of the notorious June 2011 hack that sent bitcoin prices plunging. 

Ripple Net 

RippleNet is the conglomeration of banks, professionals as well as financial institutions that are the Ripple business community. Garnered after years of work, Ripple greatly prizes its association with these institutions and banks. We give below a brief outline of RippleNet’s institutional reach: Bank of America, SBI Holdings, Standard Chartered Bank (SCB), Santander & American Express, Royal Bank of Canada, MoneyGram. Other prominent partners include : National Bank of Fujairah PJSC, MoneyMatch , UniCredit, Reisebank, UBS, National Bank of Abu Dhabi, DBS, MUFG Bank, Westpac Institutional Bank, bank of Australia. 

Ripple has in place a legal framework to refer to and correlate its relations with these big partners. 

Defining XRP

XRP plays a pivotal part in the Ripple ecosystem. XRP works as the utility token. It stands for value transfer across the Ripple network. 

XRP is the go-between for exchanges. The latter represent fiat currencies and cryptocurrencies. XRP permits participating banks to facilitate money transfers sans the need for reckoning with exchange rates as such. 

For instance, let us consider a US bank that needs to remit funds to an EU entity. Under ordinary circumstances, a number of verification processes will have to meandered through, before the remittance reaches its destination. 

All involved bodies contribute to the cost of the transfer. Then there’s the bank conversion rate to consider. 

While conducting transfers through the Ripple ecosystem, the bank would simply convert its funds into XRP. 

Once the bank’s fiat currency has been changed to XRP, a global fund transfer is so much easier to execute. The transaction cost, too, is a fraction of what conventional transactions cost. Put in perspective, remitting a million-dollar transfer costs thousands. With Ripple, the same transaction costs a few cents. 

XRP has demonstrably better flexibility since sending funds through Ripple has no cap. 

Ripple Consensus Protocol Algorithm (RSPCA) 

Blockchains are admittedly an integral part of all cryptocurrencies. The same cannot be said of Ripple, however. Ripple employs a patented decentralisation technology and consensus mechanism. Every server, in the RSPCA system, publishes new transactions list (the candidate set) to the network. Subsequently, each server tallies its list to the prevailing network state and the suggested changes. The servers vote on transactions state when the comparison is completed. Ultimately, to reach approval, 80% of nodes have to register their agreement on the new transactions. The system adds all eligible transactions to the ledger. The system then closes the ledger. The closing of the ledger verifies the next RSPCA by virtue of being a point of reference.

Ripple Products 

Currently, Ripple offers just two products. The first product is the current. The real-time gross settlement system gives its users unique functionality. 

For instance, users can settle transactions within minutes. The conventional channels easily take upward of 2-5 days. clients can enjoy access to RippleNet messaging. 

Higher in the evolution matrix overcurrent is xRapid. The latter does away with the need for accounts. In order to complete the transactions, the protocol is able to channel liquidity from the local market. For instance, when the bank wishes to conduct a fund transfer with another bank participant in the system, the XRP system sells XRP on the other side , having purchased XRP with the bank’s money. 

Since it does away with the need for overheads, banks like utilising Ripple especially for smaller amounts. Moreover, Ripple permits banks to send money to places that may actually cost higher than average transfer rates. 

The XRP ledger can process thousands of transactions in seconds. That says what we need to know in order to trust XRP.

Ripple Investment (XRP)

Heading off to an exchange such as Paybis, Poloniex, and Binance, you can immediately open your Ripple account. 

Getting started involves verification. Binance, for instance, requires you to furnish a government ID. 

Your exchange wallet transfers and exchanges other cryptocurrencies for XRP. 

Converting fiat currencies to Ripple 

You will be required to connect your bank account or debit/credit card to the exchange account. The first step could be transaction verification. You will then be asked to buy some crypto first. Then, you can exchange these currencies for fiat money at one of several cryptocurrency exchanges. 

Storing XRP/Ripple 

A hardware wallet just for you, if you want to HODL this crypto for long measures of time. The storing of your cryptocurrencies offline in hardware wallets is called cold storage. This makes your online holding impervious to threats. The Ledger Nano X as well as its predecessor Nano S support Ripple.

Should I invest in Ripple stocks?

Ripple stock is a direct investment in Ripple. Buying Ripple stock has to be in concordance with the law. It certainly helps to have a previous understanding of the stock market, before you plunge into Ripple. 

Ripple being a private company, the sole way to gain shares in the company is through secondary market private investors. 

In order to qualify as an accredited investor with Ripple, you must prove your possession of $1 million in liquid assets. You could prove the exact point by also demonstrating your having earned $200,000 for three consecutive years in the very recent past.

Trading price appreciation 

Ripple was equivalent to half a dollar last year. There is every indication it will reach the full $1 price by the end of the current year. With strong fundamentals bolstering its growing client base, Ripple is set to appreciate. 

rippleNet and XRP tokens have had many takers in the financial community recently. 

The status of XRP

XRP has garnered a lot of criticism, and not all of it is positive. As per most acerbic criticism, XRP has insufficient acceptance among businesses, regardless of present valuation. A way of reading XRP’s acceptance is its valuation as an asset , or as a transaction medium asset between banks. 

XRP in the Ripple ecosystem has become p[ivotal to Ripple’s general market valuation. 

How is XRP a breakthrough technology demonstrator?

Prevailing international transactions take place between technology systems that are not connected with each other. Interledger protocol allows Ripple to route payments through interconnected systems to link these systems. Ripple’s technology aims at facilitating transaction processing speed for cross-border transactions. 

Ingenious though they are, Ripple’s interledgers are yet to resolve the conundrum of forex transfer account fiat currencies (pre-funded). Bank maintained forex accounts see to the liquidity in forex transfers. XRP plays a vital role here. Ripple products make for quick liquidity. Ripple utilises XRP as a bridge asset. The bank may decide to buy an equivalent amount of XRP , sending the same through Ripple’s network. Ripple calls it third party liquidity provisioning. The company’s sales pitch for the service claims the service is best suited to banks which are not correspondents. 

Is XRP a currency?

Ripple’s concept has had predecessors. Truth be told, the role of XRP is not dissimilar to the role played by the USD in markets worldwide. XRP can be used in ripple and xVia. There are distinct advantages in the case of XRP transactions in xRapid. XRP is cheaper at penny-fraction. With XRP, without recourse to Pete-fund Nostro accounts, banks can, on-demand, source liquidity in real-time. 

The crux of the challenge XRP faces lies in its supply and demand matrix. With volatility issues, there can easily be transfer delay (to the accompaniment of valuation drops).

Ripple catalysing government regulation of the crypto-currency industry

The crypto-currency industry has impressed upon all economies its transparency, and ease of operations. 

Ripple is a primary member of the crypto-currency industry, and can throw its weight behind the movement for recognition.

It is a consensus among industry members as well as participants that order is desirable. With order and regulation will come investment. Ripple is certain it itself will be advantaged by a boost of regulation. Its products catalyse the implementation of prevailing regulatory hustle for customers. For instance, the current, Ripple interbank messaging product, is completely in sync with prevailing regulations. 

The main incentive for Ripley is the streamlining of international fund transfer rules. As per the current framework, governments take upon themselves the concern for drafting and implementing the rules. As consequence thereof, there’s an accretion of costs and operational complicatedness. Ripple is definitely a trail-blazer, in that an international framework might be called up into being to primarily suit its product suite. 

Ripple’s xRapid uses XRP. Ripple will definitely gain from the regulation of cryptocurrencies. 

Ripple’s XRP is being seen as eligible for capital gains taxation. The same authorities, however, have yet not conceded that XRP is currency. Oce the regulatory hassles are over, cryptocurrencies like Ripple’s XRP are going to be a boost to trade. 

Why should you buy XRP?

There are many advantages to investing in Ripple (XRP). seasoned industry watchers have high hopes of Ripple and XRP, for the following reasons: affordability; opportunity creator ; ripple market cap ; Ripple is a class apart. 

Affordability: You can have a massive amount of XRP for a handful of dollars. Keeping in mind its increasing mass appeal, investing in Ripple (and XRP) is profitable. 

Opportunity Creator: Ripple has demonstrably speeded up the capital flow. Transactions are way faster, thanks to XRP. small business holders love Ripple. Institutions have found Ripple technology beneficial, too. 

Market Cap Ripple : Ripple , with its $25.9 billion dollar market cap, is the third larges cryptocurrency in global terms. This amount delineates for us the magnitude of the investor confidence the company enjoys.

Ripple is unique: Ripple is a registered and licensed company.  Ripple Labs Inc has 500 plus talented people working for it. It interfaces with institutional clients, oo, with its PR department. Ripple (with XRP) knows what it's about. 

Conclusion

Ripple has very strong fundamentals. The confidence investors have in its philosophy and technology, is beyond doubt. The current conundrums involving regulations are the birth pangs of a new era. The authorities will have to launch frameworks allowing for the full legitimization of cutting edge technologies like Ripple’s. This is not all that implausible, considering the idea administration’s stated commitment to ‘clean energy’. In the meantime, it behoves us to keep our faith in Ripple & XRP. innovation and enterp[rise should be rewarded always.