In Ripple, users make payments between each other by using cryptographically signed transactions denominated in either fiat currencies or Ripple's internal currency (XRP). For XRP-denominated transactions Ripple can make use of its internal ledger, while for payments denominated in other assets, the Ripple ledger only records the amounts owed, with assets represented as debt obligations.  As originally Ripple only kept records in its ledger and has no real-world enforcement power, trust was required. However, Ripple is now integrated with various user verification protocols and bank services. Users have to specify which other users they trust and to what amount. When a non-XRP payment is made between two users that trust each other, the balance of the mutual credit line is adjusted, subject to limits set by each user. In order to send assets between users that have not directly established a trust relationship, the system tries to find a path between the two users such that each link of the path is between two users that do have a trust relationship. All balances along the path are then adjusted simultaneously and atomically. This mechanism of making payments through a network of trusted associates is named 'rippling'.

Ripple highlights

Ripple provides easier access to investors. Now, it has presently been predicted that with the advent of time, the value of Bitcoins will only go on to increase. Keeping the over-the-years gains in view more and more investors will eventually be drawn towards it. However, one also needs to keep in view the fact that with the rise in the value of bitcoins, the amateur investors will be confounded with the difficulties of converting something like 1000 USD to 0.10 or less BTC (bitcoins). On the other hand, the value of XRP is way cheaper. For 10 USD, for instance, you can just own 0.0012987 BTC or 44.27 XRP. So, it can well be imagined that even if bitcoins continue to attract attention, investors are will still have their eyes on the cheaper altcoins.

Here are a few pointers to consider with the ripple platform

  • Long Term Stability and Decreased Volatility
  • Low Barrier to Entry and Whole-Coin-Ownership
  • Ripple Seeks to Complement, Rather than Compete with Bitcoin

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