Crypto Academy Week 9 - Homework Post for Crypto Prof @yohan2on on the Topic: Altcoins Part1: Looking beyond the Bitcoin. Written by @chinma
Introduction
Ripple which is a currency exchange platform was created in 2012 by Ripple Labs Inc. a technology company based in the United States of America. Ripple is well-known as a payment settlement, asset exchange and remittance system which works like the Society for worldwide interbank financial telecommunication (SWIFT).
It is a platform well versed with the banking sector. It has the crypto-currency XRP as it's native currency ranking fourth by market capitalization behind Bitcoin, ethereum and tether.
XRP is traded on over 100 markets and exchanges worldwide and can be transferred without the need for a Central intermediary.
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The Crypto-currency XRP
As mentioned earlier, XRP is the native crypto-currency of Ripple which is used by Ripple products to ensure fast liquidity.
It is a digital asset meant for payments on the XRP ledger. Ripple has three major software products available that makes use of it's currency XRP. They are Xcurrent, Xvia and XRapid.
In Xcurrent which is the software most sought by the banking industry, XRP is used to settle cross-border payments.
Xvia is another software which is specifically tailored for payment providers, corporations and banks that intend sending payments across various networks using a standard interface.
In Ripple's product XRapid, XRP is used as a bridge asset that businesses can use as a connecting transfer between two different Fiat currencies.
It is pertinent to know that XRP tokens are pre-mined and has a total of 100billion pre-mined crypto coins.
Ripple has about 50billion coins in circulation with a plan to release 1 billion XRP tokens each month. Any crypto-coin that is unused at the end of the month is shifted back to an escrow account. This makes checks mis-use due to oversupply.
How does Ripple work?
Ripple operates on a hashtree instead of on a blockchain system. In the ripple network, multiple nodes are used to process a transaction. For example, if one is making a payment, the information sent will be a single value and shared on a public database.
The servers and nodes sharing the information will be validated and if separate servers report a match, the transaction is authorized and processed.
The ripple model is also consensus based which means that if a consensus is reached, the transaction is cleared. This is what makes Ripple network one of the fastest processing as much as 1500 transactions per second as against that of Bitcoin that handles between 3-6 transactions per second.
As said earlier, banks are the major users of the Ripple payment system so if for instance Raymond wants to send 200US dollars to someone in a country that supports the use of the Ripple payment system, the 200US dollars will be converted to XRP tokens, charges collected and transferred instantly to the Receiver's account. The receiver will then get XRP tokens and would have the options to either retain as XRP tokens or convert back to a convenient currency available to him or her. Easy right?
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How is XRP stored?
XRP can be stored in wallets which allows one to send and receive just like other crypto-currencies.
Software wallets like rippleX, Trustwallet and Gatehub to mention a few and hardware wallets like Trezor and Secalot can be used to store XRP.
Advantages of XRP
- XRP transactions are confirmed in seconds at little costs.
- It consumes negligible power owing to how it's mined.
Disadvantages of using XRP
- Financial institutions need to depend on Ripple to provide liquidity for transfers.
- It's supply and demand determines the transfer value which can be affected by the volatility of the market.
Conclusion
XRP is an interesting and important coin due to its importance in the financial sector. The ease and speed of transaction with this crypto-coin has made it a coin to watch out for.
Special thanks to @yohan2on for this lecture.
References
rippleX.io
wikipedia.org
investopedia.com
smart asset.com
I am a member of steemalive and this is my introductory post
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Hi @chinma
Thanks for your participation in the Steemit Crypto Academy
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Fairly done! Kindly put more effort into your work. Follow the rules and guidelines of the homework task.
Homework task
4
My work has been verified since 2days now but @steemcurator02 is yet to curate on it. Kindly help me. Thanks.
Unfortunately, I have discovered that you used copyright images. Shutterstock images are copyright images and you have no permission to use such images in your work.
It is very unfair that you would screen me out for using Shutterstock images when in the lecture for achievement posts, @cryptokannon taught that Shutterstock images are copyright free.
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See link to the lecture below.
https://steemit.com/hive-172186/@cryptokannon/achievement-3-mentor-by-cryptokannon-content-etiquette
Why wasn't this issue addressed before? Sir @yohan2on, to say I am disappointed would be putting it mildly. Thanks.
Shutterstock images have never been Copyright-free images.
Alright thanks for the information. I wouldn't have used it if I knew Shutterstock wasn't to be used. As a fairly new entrant, I was just following the lecture @cryptokannon gave. It would be proper if that article is re-edited so others wouldn't make the same mistake.
Thanks for your time even though you just made me sad today by marking me down. Thanks again. I hope to do better.
Thank you Sir. God bless you real good. Have a nice day.