As an investor, how much do you know about cryptocurrency? You must admit digital currency is a topic that has been raising eyebrows. Here news about how developers are coming up with currencies and are doing well in the market. Do you know what coin you should invest in?
With the way the cryptocurrency is trending, every investor should be keen on spotting the opportunity to invest in. not just putting your money in the currency. You also need to know of how the digital currency system can help you transact at ease and at a profit.
Developers in the digital coin field are coming up with ways of making sure they come up with ways of how the fait currency works. They want to make sure that they have a way of introducing the digital currency into the fait world and take over the way it works.
If you are an investor keen to know more about the new digital currencies surfacing every day, it is good you read along as I mention the great currency that is serving two purposes. Wondering how that can happen right? Well, read along as I tell you how.
Just like any other digital currency, it is a currency that was developed to serve the purpose of the fait currency but in a more convenient and fast way through the way we transact. Just like the name ripple, the coin serves two purposes, as a platform and as a currency.
It is a platform where the currency is exchanged. An open source protocol designed to allow fast and cheap transaction and also offer a means of currency for you to transact with. It is known as a distributed open source payment.
With ripple, it means that now you can be able to transact without the controlled system of the financial and banking system available in your country. That eliminates all the credit card, extra hyped charges and delays that come with transactions.
That is convenient right? not only do you have a discrete mode of transacting, but also it comes with a convenience of being fast and cheap. What is more exciting is that you get to transact different forms of currency both the fait and the digital once.
It is a way of transacting that has made banks interested to know how all this is done. Many have liked the idea and have joined them in transacting while many are still studying ripple way of doing transaction before embracing the system. To understand more, let’s know the origin.
Origin of Ripple coin
For such an idea to surface and work, it must have taken time, right? Well, it all started in the year 2004 when the whole idea was a working prototype. The whole idea came into action in the year 2013 thanks to the company called open coin.
The open coin was founded by its CEO Chris Larsen and CTO Jed Mc Caleb. The advantage that they had that made the company a success when they started is that they both had a wide experience in the digital currency field and in the finance sector.
Mc Caleb has a great knowledge when it comes to the bitcoin currency. He was a board member in the Mt Gox, a company that is well known when it comes to the trading of the bitcoin while Chris Larsen was an executive in a firm that was involved in matters of loans and other finances.
That made it easier for them to implement the plan into a working company. They also had an active campaign of finding funds from other investors. They successful found funds from Andreessen Horowitz, FF AngelIV, lightspeed venture partners and opportunity funds.
Over the years, they have been working to make the system better by making sure all the transactions are secure and fast like promised. They have also created awareness so that more banking institutions can embrace and start using their platform.
How ripple coin works
Like mentioned earlier, it acts as both a platform and as a coin. The platform is meant to provide an open-source protocol that is designed to allow all financial transactions to take place in a fast and cost-free way. how do they do this you may wonder right?
They do this by allowing all kind of currency to be transferred in the platform. That means you can transact with the dollars, euros, pounds, yen or even bitcoin on the platform. With the coin, they use it to make sure money is flowing on the platform freely.
With the platform, you will be safe from the frustrations that come with the banking systems. That is among hinderances like transaction delays, transaction fees and cancellation of transactions for no reason. With ripple, you will have a stress-free transaction.
Ripple coin does not have a blockchain. You may wonder how they make sure their transaction is verified and kept secure right? well, they have this brilliant idea of the use of a patterned technology called the ripple protocol consensus algorithm[RPCA]
When you talk of RPCA, you are talking of a pattern full of nodes. These nodes are the one that makes a decision when it comes to a certain decision. They must all agree before a transaction can take place and when one is not in agreement with the others, the transaction is put on hold.
The ripple platform transaction is called the free[ish] type of transaction. That means that there is no transaction fee that is charged for any transaction that takes part in their system. So, what happens when a transaction takes place?
Ripple coin is made to connect different pay system under one roof. That means when a transaction takes place and is verified, a small portion of ripple equivalent to $ 0.00001 is deducted from the funds and destroyed. That is meant to control the number of ripple coin in circulation.
Over the years, the open coin company is targeting to mine up to 100 billion ripple coins. That is with the awareness they have created and as the number of users in the platform increases. They plan to keep half of it and release the rest of the half in the circulation.
Similarities of the Ripple coin to Bitcoin
As much as we would like to see them differently, the coins are the same. Knowing how much they are alike will help you understand more about the ripple coin especially if you are already aware of the bitcoin. here are the similarities;
- They are both digital currencies
Yes, they are both meant to be used as cryptocurrencies with a decentralized location and that they can be transacted from any location. They are both mined with a mathematical formula that has a limit to the number of units that can be mined.
When you are dealing with both currencies, you can have a direct transaction from one account to another without the use of a third party. That means that the transaction minimizes chances of fraud and any dishonest transactions.
- Security required
They are both a form of currency hence care should be taken when dealing with the currencies. That means that in both, you will need a security that is provided before you can proceed and do any transaction on the platforms.
Advantages of using ripple coin
For you to be able to trust and venture into a cryptocurrency, you must weigh in the advantages of the coin against the disadvantages. What do you have to gain with the ripple coin? the following are the advantages of using the ripple coin;
- Acts like a bridge
If you are familiar with the bitcoin, then ripple coin will be a good media for you to transact. That is because using the ripple platform, you can be able to transact the bitcoin at a faster and more convenient way without any hindrances and at a low cost.
When it comes to ripple coin, financial institutions are also linked. That happens when they are all put under ripple platform for them to connect and transact freely. They also provide a coin that enables currency to flow freely on the platform.
- Fast transactions
When you come to ripple coin, it has no blockchain. That means there is no long process of waiting for a transaction to be verified so that it can be completed. With the use of the RPCA patterned technology, transactions can be verified and completed at a faster rate.
- Free[ish] transaction
That is a factor that other banks are yet to embrace. With the use of the ripple platform, there is no transaction fee that is charged. What they do is deduct a small amount of the ripple coin and destroy it from the circulation.
Disadvantages of ripple coin
As much as they want us to believe that the ripple coin works like the other digital currencies, there is a major setback since all the transaction are centred on one platform. On the platform is where they are verified and completed.
Ripple coin is a coin and platform owned by the open coin company. That means that there are people who own the coin and have a say on how the coin operates. Currently, the ripple lab owns up to 61% of the total shares of the coin.
- Can be hacked
The ripple coin is an open source. That means everyone can access the platform and do transactions at the platform. If one can have an access to the nodes, he or she can influence the decision that is going to be made by the nodes making the system venerable for hackers to gain access.
The future of ripple coin
When it comes to investment, as an investor, you must watch out where you put your money right? well, this is no different. In every investment, there is the risk of gaining or losing. You must study the field you are about to venture in with great care.
Ripple coin is a new coin, just like any other new coin. It is in developing stage trying to gain its position in the currency world. With that, it has a long way to go since bitcoin and etheruam are way ahead of them when it comes awareness and uses.
With that said, it means that the open coin company has a lot to do in terms of awareness and sealing all the loopholes that can disadvantage their use. they need to come p with more secure ways of making sure trust is built in their system for more transaction to take place.
Is there a future with the coin? yes, when it comes to the digital currency, anything can happen at any given time. With more and more people becoming curious about digital currency investment. The coin has a chance of being embraced by investors in the year 2019.
Banking institutions are also getting used to the system. With more and more banks getting on board, it is easier for them to convince people to embrace the use of the platform and the coin, with that, the coin is set for a bright future.
If you are a potential investor, it is time for you to study more and get to know about the coin. How can you benefit from the coin and how the coin is trending? With the information, you will be able to make a sober decision that will be based on what you already know.
Just like any other cryptocurrency, ripple coin here to change the currency world. It acts as both a platform and a currency making it convenient for use. with the ripple, you can be able to transact your currency faster and at a low cost with their coin on the platform to ensure free flow.
With ripple coin, you will have a faster way of verifying and completing your transaction at a low cost saving you from the hustle that comes with financial institutions.