Ripple, the cryptocurrency and its digital payment network.
Ripple’s distributed financial technology was born in September 2012. Although it was initially known as OpenCoin, in 2013 it changed its name to Ripple Labs, Inc.
Ripple was created as a digital payment network for financial transactions instantly. Since its birth, it has specialised in cross-border payments (payments between different countries).
It works as a distributed database (multiple databases related to each other), which allows executing transactions between two or more parties in a verifiable, transparent and permanent way.
These are some of the features that distinguish the cryptocurrency:
- Immediacy. The settlement of transactions is instantaneous, regardless of where the money goes to.
- There are no scalability problems. With current technology, you can perform 1,000 transactions per second.
- Real-time traceability of funds sent. You know immediately where the money went and who received it.
- Cost savings. In cross-border transactions, intermediaries are avoided, with the savings that this implies.
Ripple, a system designed for financial entities
While other digital currencies are direct rivals of banks, Ripple works as a perfect partner for them. Its system is designed for financial institutions and payment providers around the world.
This technology prevents cross-border transactions from passing through intermediaries, which usually delays payments. Therefore, banks lower operating costs for international payments. Also, the transaction speed is instantaneous and includes a real-time traceability of the funds.
When a customer of a bank (for example in Spain) wants to make a payment to another country (we assume Argentina), Ripple consults both banks for the commissioning of the transaction. Subsequently, the transfer is made, updating the statements of the respondents immediately.
Why has the Ripple price risen?
Ripple, with a market value of about 7,800 million euros, is the third world currency regarding capitalisation, behind Bitcoin and Ethereum with a market value of 62,000 and 24,500 million euros respectively. Ripple currently accounts for 5.5% of the global cryptocurrency market.
So far this year, the price of the third cryptocurrency has been revalued by 3200%. At the beginning of the year, the currency had a price of 0.0010 USD. Today, Ripple costs 0.63 per unit, in a year it has multiplied its value by 32 times.
The strength of the Ripple technology is its mechanism employing cryptographic algorithms of confirmation of transactions that allow these to be executed instantaneously at a global level.
How to buy Ripple in 2018
The process to purchase Ripple does not differ much from the way in which the other cryptocurrencies that are in the market are negotiated. You just have to meet some conditions.
First of all, you should go to an Exchange. The safest and most popular Exchanges are:
- Changelly: You only have to open an account on the platform, select the amount of XRP that you are going to buy, the currency with which you are going to pay and the wallet where you will receive the XRP.
- Bitstamp: In this platform, you can buy XRP not only with cryptocurrencies but also with fiduciary money like the dollar and the euro, as well as with credit cards. To buy XRP here, you need to open an account on the site and make a deposit or transfer of money to have a balance in the account. The next step is to select the type of currency with which you are going to pay, either digital or fiduciary, add the wallet and confirm the purchase.