What is Ripple?
Ripple is a totally new type of cryptocurrency. Instead of swapping Ripple directly for products and services, like we usually did with the usage of traditional fiat currency, the Ripple cryptocurrency is a means for transforming any currency instantaneously into other one, without trusting on a centralized exchange.
Due to this distinctive design, there are no stores who openly accept Ripple, but Ripple does have the prospective to permit for extra trade in several present currencies.
Instead of depend on on proof-of-work or proof-of-stake to authenticate transactions, Ripple utilized a distinct consensus system. In this system, anything the majority of computers on the network see occur is what gets logged in the ledger.
The rewards of this system are flawless: it necessitates relatively minimal energy to run and handles transactions better than a proof-of-work system.
This system is not flawlessly trustworthy as it can be breached by network delay or hackers, but when an untrustworthy outcome is informed, the system is programmed to scrap or reject it and redo it again, conserving the state of security of the system with cost being a minor delay in service.
Ripple’s most outstanding feature is that it can accept ANY currencies. Ripple supports token depictions of virtually any currencies, including normal or fiat currencies, for example is dollars and Yen, and other cryptocurrencies, like Bitcoins, and also “specific currencies” like air miles and point rewards.
Since these tokens are basically electronic IOUs, nonetheless, this system needs that user’s belief each other to truly pay the funds they obliged. This is less dangerous than it sounds – users can agree who they trust on the network and precisely how much of each kind of currency they trust them to control.
When a user tries to do a transaction, Ripple then works to discover a route between the parties where distinct step is a connection between 2 people trusting each other.