The value of XRP, the token of Ripple, is about 20,000% up in 2017. On the other hand, bitcoin has only risen for about 1500%. Many investors are jumping in. Many believe that XRP has an edge over bitcoin because it has an actual useful purpose. It allows for almost instant transfer between banks and financial institutions.
What is Ripple?
Ripple blockchain is mainly created for banks. The payment system is for banks and other financial institutions. The company was originally called Opencoin and was founded in 2012. This was later renamed to Ripple in 2015.
Ripple blockchain is not public. That means you cannot “mine” a XRP. The system is for instant money transfer for banks. CEO Brad Garlinghouse explains the power of Ripple.
Ripple has over 100 banks using their service around the world. The company claims to provide the fastest transfers possible between banks. One transfer takes only up to 3 seconds. Bitcoin transactions, on the other hand, take anything from an hour to 3. Ripple achieved this speed by leveraging their private blockchain and removing the bandwidth limit of bitcoin blockchain.
The future of Ripple?
Many traders believe that by the end of 2018, XRP would hit a minimum of $10. Some say it isn’t supposed to be traded in exchanges like this. Regardless of all the speculations, A majority of traders still believe ripple has a bright future. Just the concept of an instant transfer is compelling enough. As more and more banks start to use this technology, more people are drawn towards this.
Ripple transactions are powered by interledger. Which can be defined as a network of networks. Blockchain transactions determine the value of money and the other network is what transfers money itself. By this, we can achieve speed and efficiency. There are also problems associated with this which the team is said to have solved.
The recent rise in the ripple is mainly due to ripple being added to coinbase and several other exchanges. Traders came running in as they say such an opportunity.