Is Ripple decentralized cryptocurrency just like bitcoin? Why banks favor Ripple over other cryptocurrencies? So, do we really understand “what is ripple”? Investors should read this before investing in Ripple.
Unlike bitcoin, Ripple does not require Miners
That’s right, Ripple was founded by Ripple Labs and unlike bitcoin that is backed by its developers, ripple is completely backed by its founding company. It was created with 100 billion XRP tokens right from the start, out of which about 60 percent are owned by the company itself while the rest are in an escrow account. Since then xrp price has increased due to partnerships with banks.
Is Ripple decentralized?
The idea behind the creation of cryptocurrencies like Bitcoin was decentralization, where the financial transactions are to be separated from banks and other traditional financial institutions. However, ripple doesn’t run with the same principle as other cryptocurrencies, not at all!
XRP price and why Ripple is suitable for banks?
The Ripple transaction protocol (RTXP) running on Ripple blockchain is not same as other blockchain protocols. The purpose is to make XRP a “bridge currency” that is for financial institutions to settle cross-border payments faster and at cheaper rates. It has been claimed by the company that about 100 financial institutions are using this technology. And the spike in XRP prices is all thanks to that.
What is Ripple? It’s a bitcoin for banks
From the way it was founded to the way it operates, Ripple is a lot different than other cryptocurrencies like bitcoin and Ethereum. A centralized digital currency is too easy to crack with regulations. So, you might want to rethink your choice before investing in Ripple. The widespread adoption of this digital currency depends on how many banks in future will use XRP.
What are your views on Ripple being not a cryptocurrency for real? Do you think we should compare it with other cryptocurrencies? Let us know your thoughts below!
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.