Ripple is a payment protocol that aims to provide a new layer of security to the process of sending and receiving money by reducing the time it takes to transmit and receive money.
Ripple is a worldwide payment system. It allows any currency to be delivered in a very short time and with a cheap transaction charge, regardless of where you are in the globe. The Ripple platform was created to compete with SWIFT and Western Union services.
Image by Miloslav Hamřík from Pixabay
Pros of Ripple
Banks are not in a hurry to utilize this technology right now, but it is expected to be highly useful in the future. Banks that use the Ripple platform have an advantage over those who do not.
People don't have to pay hefty transaction fees, and they don't have to wait days for international money transactions when they use Ripple. We may compare Ripple to e-mail as an example; why waste money when we can send an email to the other party in seconds?
Ripple's main goal is to make international money transactions as quick as possible.
The ability to operate directly with banks is Ripple's key benefit.
The platform is lightning-fast. Transactions take less than 5 seconds to complete. In other words, by incorporating Ripple into their regular job, buyers and sellers may complete transactions fast and effortlessly.
The distinction between Ripple and Bitcoin is that it can be scaled indefinitely. Because over a thousand transactions occur on a regular basis. Ripple has occasionally outperformed Visa in terms of transaction volume, with some transactions exceeding 50,000 per second.
Image by Miloslav Hamřík from Pixabay
Cons of Ripple
There are a few disadvantages of Ripple that you should be aware of:
Many early adopters of blockchain technology are put off by the fact that the corporation has solely focused on banks. In fact, as previously stated, Jed McCaleb departed Ripple in 2013 and founded Stellar, which preserved the same functionality for everyday use as the original Ripple.
Ripple, the corporation, owns more than 60% of XRP, and while there is little chance of a large sell-off, they have the magical 51 percent advantage and hence control the blockchain.
Because ripple is pre-mined, there are few or no incentives for common nodes to participate in the network, leaving corporations such as banks to provide validator nodes. The network is not truly dispersed because only a few nodes are required to run it.
Ripple is a cryptocurrency, and regardless of how intriguing its business plan is, it carries the same dangers as any other cryptocurrency, so only invest what you can afford to lose.
In summary, the major advantages are:
As previously stated, Ripple is a collaboration between a number of banks and was not founded by a group of anonymous organizations or individuals. Its founder is self-evident.
In the Ripple network, there is no such thing as inflation.
As banks choose Ripple as their trading platform, the value of XRP will rise. As all banks decide to use XRP as a unified currency, early investors may make a fortune.
Ripple may quickly and efficiently make transfer transactions for a small cost.
On the other hand, the drawbacks are:
Seems to be a centralized.
Ripple Labs is a monopoly with 61 million tokens, in addition to its central structure.
It was developed using open source software. In truth, this is a good decision, but it leaves open the possibility of hacking. These hackers are capable of hacking computers on occasion.
Note: Do not take this as a financial advise. Its been created for information dissemination only.
Related articles:
Previous Articles:
Sources:
Lead Image by Miloslav Hamřík from Pixabay
Oh em gee! Grabe naman yung drop ng price. Super volatile talaga yung price niya. Kaya medyo hindi na din ako naginvest sa xrp eh. Sayang naman yung nalose mo. Super laki.