Soon you will be able to download the XRP wallet on 3Commas Wallet (the world’s leading cryptocurrency wallets). The 3Commas Wallet will allows you to send, store, buy and trade more than 45 cryptocurrencies. Simply put, 3Commas will be a one-stop shop for all crypto trading needs and is available on iOS and Android versions.
What created Ripple (XRP)?
Ripple was launched in 2012 by Ryan Fugger and Jed McCaleb. However, in 2013 Jed was asked to leave the company due to a dispute with Ryan. He created a different cryptocurrency known as Stellar (XLM).
Later on, Ripple Labs released 100 billion XRP into circulation while the balance of about 50 billion XRP remained under their control. They plan on releasing these in tranches of about 20% per year.
In May 2017, Ripple announced that they would lock up 55 billion XRP in escrow to ensure certainty of total XRP supply.
What is Ripple?
Ripple is the private company that created the open-source XRP ledger that, was founded in 2012 and designed for use by banks as a settlement solution.
XRP is touted as the most reliable option for sourcing liquidity on-demand and operates through the Ripple net, which is a payment network that enabled users to easily run a high-performance global payment enterprise.
With a focus on providing its users the "internet of value" Ripple XRP consists of payment providers, financial institutions, and other large organizations that want to make international payments faster and cheaper. The platform provides financial services for three specific markets: cross-border payments, the unbanked, remittance payments.
The Ripple company's business model is based on an open system where anyone can use their technology or service without paying any fees or licensing charges. The company also believes in empowering individuals so that they can take control and be independent of banks.
How does XRP work?
XRP works similarly to BTC. It is a network that employs the same blockchain technology as BTC, but its purpose was to serve international financial institutions and large companies to facilitate their transactions.
In terms of speed, it has impressive processing rates compared to other cryptocurrencies. For example, if you take the time of creation (about 3 seconds), the confirmation time of 5 seconds, and the estimated transaction speed (1-3 seconds), then XRP is one of the fastest cryptocurrencies out there.
The network was created to facilitate bank-to-bank transactions. For example, if Bank A in Germany wants to send money to Bank B in France, they use the Ripple network, which allows a direct exchange of value between A and B.
The process is faster compared to the traditional SWIFT system. For example, if Bank A sends 100 Euros to Bank B in France using the traditional SWIFT system, they have to convert their 100 Euro into USD, send it through correspondent banks which takes time depending on how many correspondent banks are involved, and then convert it into Euros again.
Besides, they also have to pay a lot of fees in the process. Therefore, with RippleNet, Bank A will be able to send their 100 Euro directly to Bank B in France, thus saving a lot of time and money.
How are transactions verified?
Ripple uses what is known as "strong federation" to validate transactions. The validation process involves validating nodes which are around 200 trusted unique entities (ex. Banks) from around the world.
These legal entities form a trustline network so that when one node sends value to another, all other nodes will accept and validate the transaction as well depending on the type of account involved in the transaction.
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