Ripple is very controversial in the crypto scene. For the first time, crypto enthusiasts want to abolish or replace the banking system. Ripple cooperates with the financial sector and is not decentralized. As you can imagine, we find this approach very exciting. Anyone investing in cryptocurrencies should always bet on the ripple. This is now also possible with a certificate – WKN VF7R1P – from Vontobel. Our recommendation for a cryptographic wallet with no big entry barrier is: eToro. Let's take a closer look at Ripple:
With a "bankable" participation certificate, Vontobel now offers investors access to the crypto-currency "Ripple". But what about cryptocurrency? In addition to nine parts, we want to bring you high quality knowledge on the exciting topic of "Ripple".
Ripple is the third largest cryptocurrency
Crypto-currencies are on everyone's lips. Bitcoin, Ethereum and Ripple are the best known. But what exactly is behind Ripple? This is often called a "Bitcoin competitor" or "bank coin". But why What is his success story? Can he follow other crypto-currencies? We will explain what lies behind the rippling cryptocurrency.
Ripple's vision: payments should be faster and cheaper
The ripple network is a digital payment network for banks, which aims to make international payments between them more efficient and less expensive. It is a system mainly dedicated to payments between different currency areas and tries to make efficient payment corridors inefficient, says the online portal Cryptolist. It is designed to connect global financial systems and enable secure transfer of assets such as fiat money, funds, etc. in real time. The goal of the founders of Ripple is simple: they want to drastically reduce transaction costs associated with the global transfer of funds and securities. For this, they have developed the XRP cryptocurrency, which allows transactions in seconds and almost free of charge. The ripple network is the main owner of Ripple XRP, the digital part.
The ripple is composed of two distinct units: 1. the payment network "Ripple" and 2. the currency in the payment network "XRP".
Ripple cooperates with banks
The money should go from A to B. The ripple system is mainly used by and between banks. With these banks, Ripple continues to develop the system. This is open and initially designed to adapt to the infrastructure of banks. Payment processes should therefore be standardized in the future. In the white paper, Ripple said, "By joining Ripple's growing global network, financial institutions can manage their customers' payments everywhere, instantly, reliably and economically." Banks and Payment Service Providers can use Digital Asset XRP to further reduce costs and enter new markets With offices in San Francisco, New York, London, Sydney and Luxembourg, Ripple has more than 100 customers in 27 countries. "
Santander, UBS and the Swedish bank SEB, for example, are already customers. American Express also wants to use the system for international payments. Ripple thus becomes the figurehead that the crypto industry must be perceived in public opinion not as a "bet" but as a sensible technology.
The ripple is not another Bitcoin
Ripple developers are pursuing a different approach than competitors such as Bitcoin or Ethereum. While most of them want to create an entirely new monetary system, free from state control and make transfers without the influence of banks, Ripple wants the exact opposite: the founders of Ripple are working with banks to use Ripple as a payment network. He wants to be the "bitcoin for banks". While Bitcoin is used by the end customers themselves for the payment transfer, Ripple is a technology that works in the background: users do not necessarily notice that they use Ripple indirectly. The project addresses rather large institutions such as payment service providers, financial institutions and banks, writes BTC-Echo. Ripple is not really a cryptocurrency in the true sense of the word.
Bitcoin wants to change what we pay. Ripple wants to change how we pay.
"Ripple Labs" created 100 billion coins early
At the beginning of the year 2012, the founders created a maximum of 100 billion XRP, of which nearly 40 billion are in circulation. The rest is left to "Ripple Labs" (the company behind Ripple) for its self-financing, over which it has exclusive control. In the long run, $ 75 billion will go to users. Ripple Labs wants to keep the rest to win the appreciation of the currency. Ripple Labs is keenly interested in creating value because it's the only source of revenue for the company. It therefore aims to generalize the use of the XRP as the main business objective. Unlike other crypto-currencies (such as Bitcoin, which is decentralized in complex IT processes decentralized by its users), you can not "extract" new monetary units, thus created. Because all XRP tokens are already created and that's what protocol rules dictate.
What will Ripple's future look like?
The increase in Ripple's value as well as the significant cooperations with companies such as American Express suggest a positive future trend for Ripple. Not only are more and more users, but also important international companies are increasingly trusting cryptocurrency. The prospects for medium-term success of the project experts are very positive, simply because Ripple cooperates with the banks and could therefore be used a lot in the foreseeable future. Ripple has the potential to become the new star among crypto-currencies.
Source: Vontobel, own
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