STEEM CRYPTO ACADEMY SEASON 2 HOME WORK POST FOR @yohan2on – THE RIPPLE ALTCOIN

It's good to be back to learn new things on this great academy. Thank you so much Professor @yohan2on for the lesson. Below is my homework post for this week.

RIPPLE

Ripple is an open source platform which enables transactions which are cheap to be undertaken at a fast speed. This platform has it's own ripple currency known as XRP.
Created in 2012, Ripple was not meant to stand alone like Bitcoin or compete with it, rather to complement cryptocurrencies and Fiat currencies.

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THE XRP TOKEN

In the ripple network, XRP is used to transfer value across the entire network. The ripple platform enables one to pay with any currency even with Bitcoin and also pay a very small fee for it.

The XRP aids in the transfer of value on the Ripple network unlike other systems which uses Fiat especially the US dollars for exchange of currencies and this leads to incurring extra charges.

THE RIPPLE PROTOCOL CONSENSUS ALGORITHM (RPCA)

There is no ripple blockchain. Rather, it uses the Ripple protocol consensus algorithm simply known as RPCA to verify its transactions.

The RPCA simply maintain that once there is a consensus (an agreement) with all the nodes, there will be a smooth implementation of a transaction. Else, if a node disagrees with the rest, the issue must be figured out before the transaction is verified.

BENEFITS OF USING RIPPLE

1. Minimal Commission is charged for exchange: Ripple serves as an intermediary in the conversion of one crypto coin to another. In the process of these conversions, only a very low fee is charged. This is more economical compared to the cost incurred in converting a cryptocoin to Fiat and then back to another Cryptocurrency.

2. Fast transactions: The transactions on ripple are way faster with an average of 4 seconds transaction time. This is quite amazing when compared to the transaction hours for Bitcoin.

1. A user may wish to issue his personal currency for a quick transaction at a low rate which implies that it is possible to create a cryptocurrency to transact.

Unlike other cryptocurrencies, there are no much regulations when it comes to ripple as it's main purpose is to be used for transactions by banks.

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PROS OF RIPPLE

1. Those who invest in Ripple are better off. This is so because, the value of the XRP token increases with the increasing number of Banks that use the platform. Hence, as more Banks accept the platform, the more of a fortune it will be for it's investors.

2. Ripple was set up as an organization with focus of banks as their main users and it has gained the trust of many Banks.

3. There is no inflation risk relative to the tokens mined.

CONS OF RIPPLE

1. There is a high centralization. Mining the Ripple Cryptocurrency here may seem to be just like investing as a Bank, as the decision of the amount of the coin as well as the time to release them lies with the developers.

2. As a result of it's use of code, it is prone to hacks.

RIPPLE INVESTMENTS

In every form of Investments, there are some risks involved. Hence, it is not complete to say investment in Ripple is a good investment options. Just like every other assets, Ripple has it's good side and bad side. Risk and return for hand in hand. However, it is left for the investor to make choices of the invesments to venture into.

CONCLUSION

Ripple is a platform that enables a fast and cheap transaction and at the same time, has it's altcoin that which is used to transfer value on the transactions carried out across the network. So many Banks have accepted the platform for transactions and this has contributed to the value of the XRP token. However, there are some downsides to it and it is left for and investor to do an in-depth analysis of the Cryptocurrency before taking an investment decision.

Thank you so much for having me here. I appreciate!
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