XRP Coin also known as Ripple Coin is the third-largest cryptocurrency by market capitalization just after Bitcoin and Ethereum. This is also a coin that has been receiving the attention of many investors. Let’s find out about this coin together. And, whether XRP coin is similar to Bitcoin or not?
What do you need to know about XRP coin?
XRP is a coin that came after bitcoin – in about 2012. Let’s find out about it.
What is XRP coin?
XRP (Ripple coin) is a payment network system (RippleNet) and cryptocurrency value (XRP), which emerged in 2012, is known as a reliable payment network. Ripple coin was abbreviated as XRP, is a centralized digital currency, unlike many cryptocurrencies. Although it is processed through the blockchain system, all ledgers are managed by companies according to the transaction. And, the purpose of this coin is to transfer large amounts of assets through the blockchain in the fastest and cheapest way.
Alt: XRP coin
What benefits do you get by using XRP?
- Transaction time is extremely fast, a transaction only takes about 4 seconds to process.
- The transaction fee is very cheap, only about 0.00001 USD per transaction.
- Cooperating with many large and small banks such as UBS, Santander, Bank of America, Standard Chartered, JP Morgan, Barclays, American Express.
- Value is based on the profit-making company. Its value increases day by day because it makes joint agreements with major payment systems provider companies and banks.
- Ripple cooperates with more than 100 banks. Therefore it is a great advantage of XRP because the more banks use it, the higher the value of XRP.
- Next, there are many banks that trust Ripple. This is also the reason why XRP does not have to be tested as much as other currencies.
- XRP Coin can be transferred into any currency or asset of value with minimal commissions for the difference.
- No inflation
Where do you buy XRP coins?
Ripple is a very popular coin. You can buy XRP at major virtual currency exchanges in the world such as Binance, Huobi, OKEx, Bittrex, Bitfinex,…However, you can only buy XRP with USD, EUR, or buy with Bitcoin ( BTC), Ethereum (ETH), or USDT (Tether) in international products but cannot be purchased with VND.
In addition, you can buy XRP at the following exchanges: Vicuta, Remitano, T-REX, Coinhako,…if you live in Viet Nam. Honestly, Remitano is the most reputable, safe, and cheapest exchange you should use.
Alt: Remitano exchange
What is the difference between XRP coin and Bitcoin?
There are many differences between XRP and Bitcoin.
Alt: The difference between Ripple and Bitcoin
Purposes and ideologies
Bitcoin is for peer-to-peer transactions and it is not necessary to have a third party to oversee the process. On the other hand, Ripple functions rather differently. Ripple focuses on helping banks become more efficient in the global transfer system.
Methods to Validate Transactions
Ripple coin and Bitcoin have Different Methods to Validate Transactions
Instead of using the blockchain mining concept, the Ripple network uses a unique distributed consensus mechanism to validate transactions in which participating nodes verify the authenticity of a transaction by conducting a poll. This enables almost instant confirmations without a central authority.
Due to the complicated and intensive nature of mining used in the cryptocurrency, Bitcoin transaction confirmations may take many minutes and are associated with high transaction costs. XRP transactions are confirmed within seconds and generally occur at very low costs.
Alt: Low cost
Similar to the bitcoin transaction processing fee, XRP transactions are charged. Each time a transaction is performed on the Ripple network, a small amount of XRP is charged to the user (individual or organization)
Coins in the market
XRP has more coins than Bitcoin in the market. About 1 billion XRP were pre-mined at launch and have been released gradually into the market by its main investors. In contrast, Bitcoin’s supply is capped at 21 million, meaning there will only ever be 21 million Bitcoin in existence. BTC’s artificial scarcity has helped generate investor interest in its potential as a store of value.
Bitcoins are released and added to the network as and when miners find them. They do not adhere to a release schedule and their supply depends mostly on network speeds and difficulty of the algorithm used to mine coins.
A smart contract controls the release of XRP. Ripple planned to release a maximum of 1 billion XRP tokens each month as governed by an in-built smart contract; the current circulation is over 50 billion.
Any unused portion of the XRP in a particular month will be shifted back to an escrow account. This mechanism ensures that there will be no possibility of misuse due to an oversupply of XRP crypto coins, and it will take many years before all the crypto coins will be available.