The "peculiarities" of Ripple
The basic difference between Ripple and bitcoin is found in the trading network mode as XRP works like traditional currencies on a digital trading network and has several similarities to the VISA or Mastercard network mode but with a much smaller billing amount per transaction. Also unlike the other large (in capitalization terms) encryption, Ripple connects to a single company in other words, it is not decentralized. Indeed, for many analysts, this is the main source of criticism against it, as the decentralized nature of cryptosmoderns is what attracts the majority of investors in the western world and not the profits they bring to investors. Somewhere here might be a part of his answer because the volume of ripple trading is driven mainly by the Asian markets and not the West. Some argue that a large part of the core pool of investors in Europe and the United States is opposed to any link between banks and cryprobonds, while in Asian markets there may be a perception that innovation requires a central management authority to be promoted.
This criticism is also reasonably supported by a sense of "investment insecurity", as in such a volatile market as the banknotes, Ripple, as owner of the largest XRP share, has the ability to capitalize at any time this share, significantly reducing its value. However, Ripple in its attempt to gain market confidence in this particular segment offers a gradual release of XRP into the market. From 2017, 55 billion XRP will be "locked" for 55 months and 1 billion XRP will be released each month to which the company will then have access.
There are 100 billion XRP, of which approximately 39 billion are in the market, the remaining 61 billion are maintained by the company, with the price of each coin when writing the article ranging between $ 0.22 - $ 0.23, and the total capitalization will reach 8.5 billion.
The daily percentage change of ripple in the period 22-23 August reached 60%, amid a period of increased volume of transactions on the world market for cryptos. However, while the XRP remains below the historic high of May when it came close to $ 0.40, the currency trading volume on August 22-23 surpassed $ 1 billion (the highest one recorded for the currency ) triggered by the turmoil in the wider area of the Korean Peninsula, and as a result this increase stemmed from increased trading volumes in the South Korean and Asian exchanges.
What brings Ripple with him?
Let's look at the key benefits of Ripple / XRP as they are so far:
A ripple transaction takes about 4 seconds to complete, and a corresponding one through the traditional system takes 3-5 days, through Ethereum about 2 minutes and using Bitcoin for 1 hour.
The ripple network can handle 1,500 transactions per second, ethereum 15 and bitcoin around 6. However, the system has managed to successfully manage 50,000 transactions per second, such as VISA.
According to Ripple, banks can reduce the average transaction cost by $ 3.76. If we estimate that a bank is making thousands or even millions of transactions each year, then we are discussing a significant benefit.
It requires less energy to create than other cryptosanisations, as it is not a "mining" product.
Supports transactions in FIAT currencies, cryptos, commodities, or any other form of value, such as customer mileage in airlines or even talk time on mobile phones.• It acts as a liquidity tool as it is a bridge between coins that are rarely traded and characterized by low liquidity, making it easier for both banks and companies with international activity to trade.
According to David Schwartz, head of the XRP cryptograph: "today's payment systems are where email was in the early 80's." Each provider set up their own system for their customers and if people used different systems they could easily interact with each other. " Thus, the ILP (inter ledger protocol) ripple can be linked to any other protocol, which is the link of all other Catholics. In other words, it creates a network that allows for the transfer of information both between other encryption and between banks.
The criticism of Ripple
The ripple was set up as a currency that would allow low cost, fast money transfers anywhere in the world, but the truth is that the company has mainly focused on facilitating banks. However, if someone likes Ripple's platform but not the philosophy of the company, he can use Stellar, which is based on more altruistic principles and was founded in 2014 by Jed Mc Caleb (co-founder of Ripple's workshops) after leaving the Ripple in 2014.
Researchers at Purdue University have recorded a number of vulnerabilities on the Ripple platform. The source of the weaknesses is the open nature of the network, which makes it vulnerable to attacks that could, for example, result in a ban on access to accounts.
Ripple is the central bank of XRP, as it retains 60% of its currencies. As mentioned above, the company assures that the currencies are blocked and gradually released, nevertheless the fact continues to be of concern to investors.Several may have opted not to invest in XRP - especially if the incentive behind investing in cryptobanks is to avoid any state or bank control - and others may have chosen it as an investment. However, as the cryptographic market has so far proved to us, the only stable thing in the case of cryptosanisations as an investment is the uncertainty, as although the market is more mature in recent times but has a relatively low capitalization and is therefore characterized by periods of high fluctuation. We certainly look forward to Ripple's development, the potential benefits that the banking industry could derive from it, and how the market will ultimately measure its particular characteristics.
