Crypto Academy Week 9 - Homework Post for @yohan2on- Season 2: Altcoins – Part1 "Looking beyond the Bitcoin" by @abu78
Hello to all steemians, I am very much excited to share with you all my homework posts for this week. Before I commence I would like to acknowledge the work of prof @yohan2on for this great lesson taught once again, this week. I would be writing about Ripple currency.
INTRODUCTION TO RIPPLE (XRP)
Ripple was co-founded by Chris Larsen and Jed McCaleb which was released in the year 2012. Ripple is made up of two different components i.e. XRP which is the digital currency and RippleNet which is the network platform for transactions. Ripple is ranked 4th in the coinmarketapp.com.
Ripple platforms aren’t like that of Bitcoin currency which is developed as a complex payment machine but rather, the ripple platform is an open-source protocol that is created to enable rapid and cheap transactions on its platform.
What is RippleNet
RippleNet is a network of institutional payment providers such as banks & money services businesses that use solutions developed by ripple to provide a frictionless experience to send money globally. source
What is XRP?
It is a token used for representing the transfer of value across the network. The main purpose of XRP is to be a mediator for other – both cryptocurrencies and fiat – exchanges.source
HOW DOES RIPPLE WORKS?
Ripple networks do not operate like other currencies where it depends on a proof-of-work system or a proof-of-stake system but rather, depends on an agreement protocol in order to accept transactions and balances performed on the system. This consensus did, helps to prevent double-spending on the system by improving the integrity of the system.
Ripple’s gateway system allows any individual or businessman to create a gateway on the platform that allows users to directly make transfers on the platform. A registrant can be authorized to act as a middleman who carries out the exchange, liquidity maintenance, and so on.source
Ripple summarizes the data with the help of a HashTree and then compares the data across all its validating servers. Its consensus doesn’t depend on the blockchain. According to marketcap, ripple was the 3rd largest cryptocurrency in the year 2019 at about $13.37 billion.
WHAT IS THE RIPPLE PROTOCOL ALGORITHM (RPCA)?
Due to the lack of the use of Blockchain in ripple transactions, it has its own legal technology called the Ripple Protocol Consensus Algorithm.
This protocol helps to store all transactions and liabilities between users and institutions in the public register in an attempt to change the state trust system into digital currency.
Behind this system is so-called IOUs, The abbreviation stands for the English phrase “I owe you” and is a kind of promissory note, In the Ripple Register, the user’s promissory notes are stored, i.e. which person owes how much of which currency to another individual and vice versa, In addition to the debt system, the protocol also enables an extensive foreign exchange market in a similar way, which is constantly evolving.source
HOW TO BUY RIPPLE (XRP) USING BINANCE
STEP 1:
Open and login into your Binance account.
STEP 2;
Click and Select on markets.
STEP 3:
Search for (XRP) using the search button.
STEP 4:
Click on the trade
STEP 5:
Enter the amount of XRP to buy and Click on buy XRP to confirm the transaction.
HOW TO SELL RIPPLE (XRP) USING BINANCE
STEP 1:
Open and login into your binance account.
STEP 2:
Click and Select on markets.
STEP 3:
Search for (XRP) using the search button.
STEP 4:
Click on trade
STEP 5:
Enter the amount of XRP to sell and Click on Sell XRP to confirm the transaction.
WHAT HAS CAUSED TO THE RISE OF RIPPLE’S PRICE?
There are several factors that have led to the rise of ripple currency and the following enumerates some of these factors;
The mode of Supply of XRP: XRP is only supplied by the company behind it and cannot be mined as other currencies do.
Bank Adoption: the adoption of ripples by banks and other major institutions is also one of the factors that lead to the rise of ripple prices.
When XRP is added to an exchange such as Coinbase.
BENEFITS OF USING RIPPLE (XRP) CRYPTOCURRENCY
It is very fast and reliable.
It is scalable: this means it has the capacity to handle about 1,500 transactions per minute at high accuracy and consistency.
It is widespread usage.
It is stabilized in the market.
It is a decentralized remittance system
WHERE TO STORE XRP TOKENS
Ledgere Nano-X
Sugi Wallet
Atomic Wallet
GateHub Wallet
Cryptonator Wallet
Lezor
EXCHANGES USED IN PURCHASING RIPPLE (XRP)
Binance
Bybit
CoinBase
Bitstamp
Kraken
Gatehub
Bitfinex
ADVANTAGES OF RIPPLE (XRP) CURRENCY
It is fast and cheap
It is scalable
It uses a decentralized network of over 150 validators around the globe
It has good stable technology and governance.
There is no energy cost associated with transactions
DISADVANTAGES OF RIPPLE (XRP) CURRENCY
It is highly centralized
There are no incentives for common nodes to work in the network due to the fact that ripple currency is pre-mined.
It is risky as compared to other currencies.
CONCLUSION
Ripple currency is one of the late entrants into the cryptocurrency market is now among the third most valuable crypto in the market today. This shows how rapidly the ripple cryptocurrency has grown in the crypto market in a very short period. Due to the high growth rate of ripple in the coin market, one can play risk and invest in it. I said risk because ripples are less volatile and their market price could easily be influenced.
Thank you all for reading my post.
Special Thanks to:
@yohan2on.
Hi @abu78
Thanks for your attendance and participation in the Steemit Crypto Academy
Feedback
This is good work. Well done with your research on Ripple(XRP)
Homework task
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