Home Altcoins News Holy Grail Ripple (XRP) Comprehensive Explanation for Beginners

Holy Grail Ripple (XRP) Comprehensive Explanation for Beginners

ripple beginner

Seasoned analysts have to state that they would consider investors who decide whether to trade or not based on market dynamism to be just naïve.

Important to note cryptocurrencies have seen worse pullbacks than the previous ones.  There are experienced traders who know how to make good use of the dip and pump. It is about being very clear about the basics – understanding the fundamentals of the token as clear as the CEO or Founder of the coin.  And, then it is about trading and getting to know how to react to different signals.

Max Maher presents what he calls a holy grail Ripple (XRP) – the most comprehensive video on XRP. He claims it will be possible to understand XRP better than anyone else.

What is it? Ripple is a blockchain based payment network. XRP – Ripple’s native token 7th largest crypto.

How did it start? Founded by Ryan Fugger as Ripple Pay in 2004. Didn’t use any blockchain. In 2012 it was sold where it was renamed OpenCoin and added ledger technology. In 2013 it was renamed Ripple Labs. In 2015 Dropped the name labs.

The Goal of Ripple is to “Be the crème de la crème system for bank to bank transfers.” They wanted to do this because transferring money internationally was expensive. Many transfers have to go through intermediary banks before the final destination all charging a fee.  Many banks operate on different systems. Gets worse with different currencies.

How is XRP going to do all of this? XRP claims to do this by being the internet of value. It wants to basically become a place where people can instantly transfer eliminating the bloat, the middleman, the issues with the currency systems.  It is very similar to just blockchain technology in general. It is the internet of value.

Reportedly, since money systems are kind of dumb, this capability makes them more efficient, because the faster the processing times the better.

Ripple is different than other coins and banking systems:  It allows for transaction settlements in 3 seconds. 3 days for wire and 10 minutes for Bitcoin. It is fast because of the consensus mechanism on the blockchain ledger, which is different than Bitcoin, Ethereum, or Cardano. It can currently do 1500 transactions per second. So, it’s TPS report is off the charts and it is so much faster than most cryptocurrencies.

Bitcoin is just a couple transactions per second. In a Visa system, it is 25,000 transactions per second and their goal is to reach the Visa level transaction. And, therefore they are far ahead most of the competition right now at 1500 transaction per second.  And their transaction fee is just 10 drops.

And, a drop is 0.000001 XRP. And, 10 drops is about $0.01.

Where does the fees go when the transactions are done? They are burned. Meaning the coin is deflationary due to its fixed decreasing supply.  The supply of XRP decreases with transaction fees. Therefore, the coin will become valuable over time because of the deflationary pressure.

The current supply is about a 100 billion coins. There are approximately 45 billion in circulation and 55 billion locked up in escrow. People are concerned about the funds locked up in Escrow because if they were just to be released that would flood the system and the value of the coin will go down. They do all this through their system Ripple Net.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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