The leading cryptocurrencies of the world have paved the way for a newer and better technology that can be developed to solve new-age problems. Ripple is one of the top 10 cryptocurrencies in the world that has shown amazing growth since its launch. It is known around the globe for making well-planned strategic decisions that have led to its success. Although 2022 has been hard on the value of XRP, there is great potential in this crypto. There are many reasons why Ripple is considered a good investment. To understand the reason behind its success, let us first understand a few things about Ripple.
What is Ripple?
If you are looking to educate yourself and are reading literature online, you may notice that Ripple and XRP are often used instead of each other. That is not the correct way. Ripple is a company that creates software solutions for making payments. This platform has been adopted by many financial institutions and XRP is the cryptocurrency used by this company. XRP was conceptualized and created much before Ripple. These tokens cannot be mined and there is a finite supply of them too. About 80 percent of the tokens were given to Ripple when the company was launched.
Reasons why Ripple is so successful
Relations with financial institutes
One of the things that Ripple was able to achieve and its peers were not is a stable and lasting relationship with banks and financial institutions. It is accepted by a lot of banks and other major businesses. Another advantage of this association is that XRP is relatively safer from any changes in rules that apply to cryptographic currency around the world.
Transaction protocol
Unlike most cryptocurrencies, Ripple uses a consensus mechanism. Since it is a network powered by a blockchain, it uses its own cryptocurrency which is known as XRP. The consensus mechanism works via a group of bank-owned servers to confirm transactions. It is used for multiple purposes that include transferring or getting cryptocurrencies, fiat currencies, and information. Ripple can manage large transactions all around the globe at lower fees than its peers.
Accessible on exchange platforms
Ripple is accessible on all major exchange platforms. This means despite its uses on the blockchain, you can trade, buy, and sell using platforms that are available to everyone. CoinSwitch is one such platform on which Ripple is available. It is an easy-to-use exchange platform that is available in the form of a dynamic app too. You can create an account and earmark Ripple to keep an eye on the Ripple to INR value.
Scalability
When the volume of business rises, most cryptocurrencies will face an issue because of the scalability. However, Ripple is expected to not run into any such problems as it will rarely have connections with external market shocks caused due to the volatile nature of the market. What separates Ripple from other cryptocurrencies is that it has a sizable market cap and it uses a consensus mechanism when it comes to transactions.
Company image and public relations
Ripple is not a blockchain but rather a full-scale company that employs teams to manage its public relations along with other things like building brand image, building its culture, and other such things. It is a properly developed venture that focuses on payment solutions rather than increasing the value of its cryptocurrency. Ripple has always maintained that the company is the focus, while the advancement of XRP is simply a by-product of their success.
Lower fees than most cryptocurrencies
Ripple has a good transaction time, unlike its competitors. Apart from this, the transaction fees are comparatively lower and don’t cut into your profits. This is another reason why XRP is becoming one of the favourite cryptocurrencies in the world.
Strings between XRP and Ripple
Ripple has ensured that there are absolutely no ties between the company and XRP. Since it is a decentralized cryptocurrency, XRP has been able to gain the trust and attention of crypto investors. However, Ripple Labs owns this cryptocurrency and that makes a small part of it centralized. This has led to the value being more stable than other cryptocurrencies. Unlike Bitcoin, this one has a whole team that is dedicated to bringing about awareness and improving the worth of the cryptocurrency. This is why the BTC to INR value solely rests on how the cryptocurrency is doing. But the value of XRP to INR depends on how many people have adopted RippleNet.
These are reasons that set Ripple apart from the rest of the cryptocurrencies. Another reason why it is becoming increasingly popular is that it buys faster transactions and other services on a reliable payment solution platform. The trust factor of this crypto increased exponentially when people found out that it is good enough for financial institutions.
