Ripple is a type of cryptocurrency, launched in 2012 that breaks down many rules that define cryptocurrencies. The most common use of Ripple is a cross-border transaction in which a customer wants to transfer money abroad. You may wonder whether it’s a real cryptocurrency or not, and why does it matter?
Ripple was created by a computer software company, carrying the same name. It works as a decentralized payment network, and it also works to enhance the traditional financial systems, mainly. It’s different from a bitcoin, which was designed to start an alternative mode of currency and payment processing.
Tukar Ripple Indonesia is a cryptocurrency unit, also called XRP. The cryptocurrency is just used to bring transparency, speed, and security to conventional financial processes. You won’t find any lofty talk related to ‘ reinventing money’ here. It also received some criticism from the decentralization diehards, claiming it a fake cryptocurrency.
Almost 100 billion XRP were created under ripple inception, whose 60%, still belong to the company. A few of those are destroyed whenever a transaction occurs. It cannot be mined either. So, it can only be obtained through a cryptocurrency exchange.
Tukar ripple Indonesia, earned a reputation as one of the excellent ‘altcoins’ available, that too with a good reason. It’s a lot faster than bitcoin. A transaction on the ripple system takes a few seconds, but a transaction on the bitcoin system takes a few minutes. The speed makes the ripple system more attractive to the banks and financial institutions, who have been sincerely surveying the advantages of blockchain technology for some time.
Main features of Tukar ripple Indonesia are:-
- The speed of the transaction goes around 3.3 seconds.
- After the completion of transactions using XRP, a little bit of XRP is burnt, thereby increasing the value of Ripple over time.
- It uses the inter ledger protocol and chain-links over various ledgers.
- The lower transactions cost around 0.004 cents per transaction.
Advantages of Ripple are:-
- It is a legitimate cryptocurrency having a strong potential to disrupt currency exchange.
- Behind this, there’s a reliable company backing and a talented team.
- Ripple has customers deploying its goods in the production process.
- It boasts the name of some big clients such as Unicredit, UBS, Santander and Standard Chartered.
- The National Bank of Abu Dhabi has become the first bank in the mid-east to use the solution of Ripple to provide real-time cross-border payments for their customers.
Disadvantages of Ripple are:-
- It goes against the philosophy of cryptocurrency being decentralized.
- Few crypto evangelists and investors are not comfortable investing in XRP because of the dislike of the banking system.
- Banks are not required to use the XRP on the network of Ripple.
- Ripple detains the majority of XRP to form a stable supply of the token, but also can easily affect the price by discarding more coins into the market.