These days, the cryptocurrency technology is becoming a major interest among millions of enthusiasts. We are aware of the Bitcoin cryptocurrency and the Ether cryptocurrency as well. These are digitally centralized cryptocurrencies that are gradually taking the place of our fiat monetary in many parts of the world.
Ripple is also a technology that can be regarded as an open source cryptocurrency network and protocol for your financial transactions. The Ripple cryptocurrency has been around since 2012 and is known as the XRP. Just like Bitcoins are known as BTC or XBT. Thus Ripple can be called an altcoin. It is gaining its growth in the digital market and is in a hard competition alongside Bitcoin and Ethereum cryptocurrencies.
How Ripple Is Making Its Way Up In Cryptocurrency
There are a few possible reasons that show that the Ripple cryptocurrency is surging.
1. Abolishing Proof of Work (PoW) algorithm
Ripple does not require Proof of Work (PoW) algorithm in order to verify transactions. Instead, the cryptocurrency applies consensus mechanism as a more convenient and efficient way of dealing with transactions.
This is because usually, the Proof of Work (PoW) and Proof of Stake (PoS) algorithms are extremely slow and becomes rather inconvenient when transacting finance to and from different parts of the world in a short period of time.
Ripple takes only a few seconds in settling transactions, as opposed to the 60 minutes of time that is taken by Bitcoin and Ethereum in their transactions.
2. Provision of services to customers
Ripple has sought out to provide services to its customers. These services include:
xRapid: Payment providers can liquidate their cryptocurrency via on-demand source.
xVia: This Ripple service allows businesses to manage payments through RippleNet which is a service for sending money globally.
xCurrent: This blockchain service by Ripple enables banks to process payments of their customers, both at the domestic and international level.
This service also helps in reducing the cost that is involves in settling payments.
3. Ripple is taking down Bitcoin
As per reports, it shows that Ripple is fairing well than the popular Bitcoin cryptocurrency in terms of the rise in the percentage of its value in the market. The value of Ripple cryptocurrency is gradually ascending despite the regulations being implemente by international authorities on controlling the cryptocurrency exchanges.
As of now, Ripple is the only cryptocurrency that his ahead of Bitcoin in percentage increase. The current value of Ripple is $1.07.
4. Adopting Ripple as a payment platform
Asian nations like Japan and South Korea have taken a keen interest in Ripple cryptocurrency and blockchain and have decided to adopt and implement Ripple’s blockchain technology in their various banks as a means of payment platform.
This is a huge success for Ripple as it is making its way for recognition across the globe.
5. More demand, more value
Ripple is experiencing a large demand, especially in the Asian and South-Asian nations. A major group of credit card companies in Japan and other banks in several parts of the Asian continent have partnered and have also increased the value of the Ripple cryptocurrency.
It is a major step that has led the Ripple cryptocurrency to advance and progress by increasing its demand and increasing its value.
6. Popularity overseas
It is estimates that the Ripple cryptocurrency and blockchain technology have become very popular in the Asian countries. A few private banks in India have also welcomed Ripple as a means of currency exchange.
This is in contrast to the Bitcoin cryptocurrency which is primarily prevalent in the United States of America on a major scale.
Ripple is a cost-efficient method of settling transactions across various nations. It requires only a fraction of payment fees which is extremely low.
With the introduction of RippleNet, both the sending and receiving banks can safely maintain their decentralized public ledgers and speed up the transaction process.
8. Dynamic exchanges
Ripple cryptocurrency and blockchain technology adheres to the dynamic model of exchange technique between banks and commercial customers and at the best possible rates. No wonder why it has shown such a good increase in its value in just over a few years of its issuance.
With the dynamic exchange technique, it becomes much easier to convert international currencies, such as that of a US dollar to Indian rupees and vice versa.
Ripple is believes to be very reliable as well as being secure than other cryptocurrencies. Because organizations seek reliability when settling their transactions. This makes Ripple one of the greatest choices by many major overseas banks and commercial customers.
A few major banks in India, such as Standard Chartered, SBI, Axis Bank, etc., have been determine with high hopes from the commercial aspect.
10. On a high competition
One of the major reasons for Ripple having an increase in its currency value is its low price. This has further ignited a competition among Ripple’s rivals, the Bitcoin and Ethereum cryptocurrencies. Ripple is providing its cryptocurrency at lower prices. Due to this advantage, many organizations and banks are knocking at its doors for opportunities.
Ripple has also implemented a non-tedious business strategy which has gained it a fair reward. Although the value of Ripple will keep fluctuating. It is still going to be a race of cat and mouse with Ripple being in the lead and being chasing by its counterparts, Bitcoin and Ethereum.