Ripple/XRP: Everything you need to know about the third highest cryptocurrency based on market cap

Ripple is a payment protocol built upon a distributed open source internet protocol. Its initial release was on 2012, but the first stable release was on 15 May 2018. The developers have based Ripple around the XRP Ledger which employs their native cryptocurrency, XRP.

Ripple, in addition to issuing XRP, also allows their users to create their own using the platform via RippleNet.

What is RippleNet and how is it useful?
According to Cointelegraph, “RippleNet is a network of institutional payment-providers such as banks and money services businesses that use solutions developed by Ripple to provide a frictionless experience to send money globally”.

The customer’s demand for payments has evolved in the recent years. Businesses and consumers alike demand global transactions to be seamless, real-time, have absolute certainty and be cost-effective. The current global transaction system fails to fulfil these demands as it is disparate, slow and expensive.

RippleNet completely eradicates these problems as it is designed to provide a better customer experience than current payment processors. RippleNet is standardised, fast, offers absolute certainty and is highly cost-efficient.

What are the advantages and disadvantages of Ripple/XRP?
A 100% safe investment does not exist, and the decision to invest or not in Ripple/XRP ultimately falls on you. Just like any cryptocurrency, there are certain advantages and disadvantages to investing in XRP.

Advantages:
1)Ripple is an official organisation whose goal is to be used by all the banks, and this allows XRP to avoid any multiple regulation checks. Ripple is not another blockchain startup and is a company trusted by many banks.
2)There is no need for XRP to experience inflation. All the XRP tokens are pre-mined and therefore already exist.
3)The more banks that utilise the Ripple platform, the higher the XRP value. If every bank in the world decided to integrate XRP into their system, then it can unleash its full potential and produce massive fortune to all the early XRP investors.
4)The transaction time is much faster, and the transaction fees are much cheaper compared to Bitcoin, Ethereum or traditional international bank transfers. On top of that, you can also exchange XRP with any currency.

Disadvantages:
1)XRP is a highly centralised cryptocurrency. The developers of Ripple have complete authority over the decision of when and how many XRP to release. They can even decide on whether or not to issue any XRP as well, and all of this is because the tokens are pre-mined. In simple terms, investing in XRP will be quite similar to investing in a bank.
2)In the current situation, XRP functions more like a monopoly than as a digital currency. The company that created Ripple/XRP, Ripple Labs, Inc. owns about 61% of the XRP.
3)Ripple is an open-source system which means that the code is accessible to the whole world and hackers can take advantage of this. There is even a chance that they could succeed.

XRP holds great potential, and its capabilities are only limited to the imagination. The future for any cryptocurrency is very uncertain, and XRP is no different. Experts and Enthusiasts predict that XRP could even surpass Ethereum in the not too distant future as more banks start adopting it.

XRP is currently the third highest cryptocurrency, according to CoinMarketCap’s Top 100 Cryptocurrencies By Market Capitalization. The current value of XRP, at the time of writing, is US$ 0.5597 while the market cap is over US$ 22 billion.

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