Ripple (Cryptocurrency)

Reviewed by Komal | Updated on Aug 26, 2020

Introduction

Ripple is a technology that acts as a digital payment network for financial transactions as well as cryptocurrency. It was co-founded by Chris Larsen and Jed McCaleb and released in the year 2012.

It is the third-largest cryptocurrency by market cap, Bitcoin and Ethereum following it. It operates on a peer to peer and an open-source, decentralised platform that allows a seamless transfer of money in any given form like Yes, USD, Bitcoin, and so on. Ripple is majorly known for its digital payment platform rather than its cryptocurrency.

Understanding Ripple (Cryptocurrency)

  1. It uses a consensus mechanism to confirm transactions through a group of servers.
  2. Ripple transactions use less energy than Bitcoins, are confirmed in seconds and costs very less.
  3. Its main process is a payment settlement asset exchange and remittance system, mostly used by banks and financial middlemen.
  4. It keeps track of all the transactions in a given currency for any user or a gateway.