What is Ripple

Ripple is a dual service platform that allows transactions via digital payment network and through cryptocurrency. The platform is more popular for its flawless digital payment method. Ripple’s gateway is a trusted medium between two traders who want to execute a transaction. The gateway serves as the credit agent by receiving and sending currencies to traders’ accounts via the Ripple network. 

Ripple has made global payments economical and faster by connecting the payment providers and banks worldwide. Ripple was co-founded by Chris Larsen and Jed McCaleb in the year 2012. Since then, it has come a long way and currently stands among the top 3 largest cryptocurrencies in the world by market cap. In the year 2019, Ripple raised US$ 200 Million as funding in Series-C Round Led by Tetragon, which is its highest to date.

Ripple’s network of institutional payment providers is known as RippleNet. It provides various solutions through which traders can easily send and receive money internationally. It also allows the scope of a barter transaction which turns the traders’ invaluable asset to a valuable one. The system finds the best economical combination which suits the needs of the traders involved in such transactions. 


The XRP is a digital asset of Ripple used exclusively for payments. It can be sent directly without any third-party link and serves as an important asset by bridging the gap between two different currencies. The transactions are settled within 4 seconds, which makes it the fastest mode of transaction in the crypto industry. The transaction cost is of minimal US$ 0.0000060. The amount varies from time to time but remains lower than US$ 1. The reason for charging is to avoid any kind of malicious attack.


The Ripple Protocol Consensus Algorithm

Ripple’s working model is different from other leading cryptocurrencies like Bitcoin and Ethereum. It has its own stand-alone process where every node should be in agreement with others. The RPCA is applied at regular intervals by all nodes to maintain the accuracy of the Ripple network. If any node doesn’t agree, then the transaction will take place only after resolving the issue. The consensus model is designed in a way that it prevents double-spending and enhances system integrity. 



Ripple is more economical when it comes to a commission charge of converting currencies of different values. For instance, there are several currencies, which can’t be directly converted for which banks use US$ as an intermediary. The commission rates incurred in US$ are higher than the Ripple rates. The average time of each transaction is 0-4 seconds, which is the fastest mode of transaction in any form of payment services. Any type of valuables and currencies can be exchanged via Ripple with a minimal service charge. Ripple is associated with reputed banks like Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD, and UBS. The value of XRP will increase when more banks use Ripple as a transaction platform.



The biggest criticism against Ripple is that it’s a highly centralized platform that is contrary to the decentralized nature of cryptocurrency. The XRP is mined by the Ripple developers giving them the authority to control the circulation. As they have circulation control, the chances of creating a shortage of token and false inflation cannot be written off. Also, the company enjoys the monopoly as they hold the majority of the tokens. This raises a question of concern as the company can freeze the traders’ transactions. 

In spite of these criticisms, the majority of the trade analyst believes that Ripple has a bright future ahead and there’s no stopping. It offers a wide range of products & services designed to suit the convenience of traders and is already among the top 3 cryptocurrencies of the world.