XRP: The Story of Success

Images by skeeze and vjkombajn from Pixabay

It is known that there are other cryptocurrencies in the world besides Bitcoin. Each has its consensus and its online relationships. There are also forks that have become necessary in the process of network development. The Ripple project stands apart in this context.  Jed McCaleb was one of the founders of the future company. A bit later he has created the Mt. Gox exchange which, by the will of fate, had to be declared bankrupt. The developer has then focused his efforts on the Stellar fork – the project that deserves special attention.

Now let’s talk about Ripple, how it works, and why it is popular. The main feature of this system is that, unlike other networks of a distributed registry, the nodes of Ripple are located on servers. However, it does not have a Proof of Work mining algorithm. According to the company, the number of nodes he has is strictly limited.

Another feature is that the number of Ripple coins is emitted in advance. This in turn, according to some experts, already undermines the transparency of the project. At the same time, 100 billion coins were issued, 60 billion of which belong to developers and 40 billion – to users.

As for the integration of Ripple, it is about close cooperation with banks. Therefore, skeptics often express distrust to this project, Since having pre-issued coins there is a dependence on the traditional banking system. Therefore, as noted above, Ripple stands alone. Rather, the “black sheep” among decentralized fintech projects.

Another notable fact is that Ripple is among the five most capitalized cryptocurrencies according to coinmarketcap.com. The distributed network token allows exchanges for any currency. It is also possible to transfer money to any country via the Internet. During the exchange, the demand for Ripple grows, and as a result, the price of a coin rises. Many developers and crypto enthusiasts believe that these coins can become a reserve currency. At the same time, the real numbers of popular Bitcoin or Ethereum are ignored.

Another interesting fact is that Ripple practically cannot be mined like other cryptocurrencies. But it can be obtained using the Ripple Labs service. This service allows you to receive coins as a reward. Its main idea is to distribute the computing power of your computer for scientific purposes. It is clear that your power may not be enough. But if there are several thousand of such enthusiasts in the world, then the aggregate distribution of power is enough to help science or medicine. We note that we are talking about a large amount of data processing. Such an approach is not a full-fledged Ripple mining, but most likely a charity for a fee.

According to the latest news, at the beginning of 2019 criticism in the address of the company has appeared. Messary analytical company has criticized Ripple for false information on the company’s capitalization. According to analysts, Ripple does not provide detailed information on the calculation methodology and does not provide data on exchanges. Additionally, there is no information from where they take data on trade volumes. In response, representatives of Fintech replied that the calculation is quite simple for all cryptocurrency companies. They noted that they consider the current price along with the total offer for the calculations. In general, according to representatives of Ripple, coinmarketcap.com resource should be believed.

But despite those statements, Ripple network is still popular among the partners and users of the Israeli company GMT. The United Arab Emirates did not stand aside with their UAE Exchange project.

The unexpected growth of bitcoin
Growing trading activity

Related Posts

Black and white

In the light of the blockchain technology development, there are both optimists and their opponents.…
Menu