Why Should You Use Ripple's XRP?
Cryptocurrencies abound since Bitcoin’s phenomenal rise, but people are nervous about using it for daily transactions because of its perceived instability. Here is why you should use Ripple XRP instead.
XRP is way better than Bitcoin
The idea of cryptocurrency began as early as 1983 and cumulated as a paper by computer scientists in the Netherlands as a way to transmit money anonymously. However, it still required communication with a bank. Bitcoin is the first cryptocurrency to use a peer-to-peer network in transactions, effectively eliminating any financial institution as a mediator. It uses a blockchain scheme or "proof of work" to verify each transaction. Bitcoin had an initial value of just $0.09 in 2010 but spiked sharply near the end of 2017, and the value has been volatile ever since.
Prepare for some shocking news. Ripple doesn’t use blockchain for its native currency, XRP.
That may sound strange to most people because, in their minds, cryptocurrency and blockchain go together like peanut butter and jelly. However, XRP is not actually the first to use alternatives to blockchain as a way to verify a transaction. IOTA was the first to do so, and Ripple uses something else as well: RPCA.
RPCA is a patented system that stands for the Ripple Protocol Consensus Algorithm. Instead of using proof of work, it uses proof of correctness. It’s a much faster process, which makes it very useful for global transactions.
The best thing about XRP is that it’s fast, averaging about four seconds per transaction. However, that’s not the only benefit. Using XRP for currency exchanges reduces your commission costs to just $0.00001, as compared to an estimated 4% for a centralized currency such as the U.S. dollar. RippleNet users can also choose to nominate value to practically anything of value (as long as there is a consensus) and trade with that, creating a pseudo barter system within the network.
Because of its unique benefits, Ripple is now the favored platform for many international users, and Ripple XRP is coming up close behind Bitcoin and Ethereum.
Although XRP could be the future of advanced global payments, some people with an offshore account still prefer to use a versatile e-wallet
for their money transfer needs.