Curious to learn about Ripple? Wondering whether you should invest in this popular cryptocurrency or not? If your answer is probably yes, you have landed on the right place.
Table of Contents
- An Introduction to Ripple
- Ripple’s Major Characteristics
- Top Reason to Invest in Ripple
- Is Ripple Ledger’s Consensus the Future?
- Concluding Lines
An Introduction to Ripple
Bitcoin, the first-ever cryptocurrency, is the most popular cryptocurrency that is most widely-traded. However, Bitcoin is not the only cryptocurrency in the digital world. Many people have started looking towards investments for their next investment. Apart from Bitcoin, Ripple is another crypto asset that is becoming pretty popular among crypto enthusiasts and bankers.
It is an open-source protocol designed to make the transaction process more manageable, especially for cross-border payments. It is a platform that allows people to create their own currency, XRP, via RippleNet, a network of institutional payment-providers that use solutions developed by Ripple to offer a frictionless experience to send money worldwide. Ripple is the only centralized crypto that is directly interlinked with the banking community, and this is the reason why it is gaining a lot of public attention.
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Ripple’s Major Characteristics
- Ripple can be exchanged with any valuable asset with a minimum unified commission.
- The platform helps in capitalizing on operational and cost efficiencies to grow your business to new heights.
- It is known to be a reliable platform that offers the ability to perform instant cross-border payments.
- Due to its increased visibility, it helps eliminate payment failure.
- It offers digital security to defend against forged coins.
Top Reason to Invest in Ripple
If you are planning to invest in Ripple, here are the top reasons why it is an effective investment.
Uses Consensus Ledgers to Perform Transactions
Bitcoin and Ethereum, which are the most popular cryptocurrencies, face the most significant flaws, and that is they use a proof-of-work consensus mechanism, which makes it increasingly difficult to make the transaction process. When it comes to Ripple, this platform uses consensus ledgers to process transactions. This turns into less work for processors, fewer obstacles with the design, and a comparatively steady transaction time.
Ripple has recently started gaining popularity due to the fact that it does not have any connection with the external market shocks and price volatilities. It has a huge market capitalization, and unlike other cryptocurrencies, it utilizes consensus ledgers when it comes to transactions. As this cryptocurrency continues to remain under the limelight, it is estimated that the value of the Ripple XRP token could rise to $0.46 by the very end of 2020. Also, predictions state that the price will rise to $0.58 in the year 2021 and achieve a mean price of $2.32 by 2025.
More Control Over Ripple’s Value
Unlike other popular cryptocurrencies like Bitcoin and Ethereum, which are mostly decentralized cryptocurrencies, Ripple is owned by a centralized company, which indicates that there is more control over Ripple’s value. Ripple is a centralized cryptocurrency that is owned by Ripple Labs. Since no one controls Bitcoin, which means “fixing” Bitcoin is not possible. Ripple, on the other hand, has a centralized group that works on keeping its value stable and ensuring its success.
Moreover, Ripple is known to have high potential. Although it has faced a relatively slow growth previously, the other compelling reason to invest in Ripple is due to the fact that it deals with its potential cryptocurrency-style high returns without the high costs.
Is Ripple Ledger’s Consensus the Future?
David Schwartz, Ripple CTO, contributed a post named “Beyond Proof of Work: the XRPL Consensus Solution,” in which he mentioned the reasons why XRPL’s consensus is more energy-efficient.
He explained that with the extensive electrical usage and transaction cost inefficiencies, PoW has proven to be a technological dead-end. He focuses on the continuous development of Ripple Ledger’s Consensus and also announced a “Negative UNL” feature that will improve XRPL’s ability to bear validator outages while still making reliable forward progress.
He believes that XRP is the only crypto asset that empowers its users to rapidly and economically source liquidity—while also allowing greater scalability. Unlike PoW, the consensus validation system of Ripple, XRPL uses an anti-robustness principle that promotes reliability and authenticity.
Being a decentralized crypto asset, this cryptocurrency is grabbing the attention of numerous big financial fishes. If you want to invest in Ripple and start trading, hope we have provided enough reasons why investing in Ripple is beneficial.
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