With a 35, 000 % increase in value in 2017 and market cap of over $118 billion, Ripple has become a much-debated topic among analysts and investors alike. But, what’s Ripple? Is it like other cryptocurrencies? Why has it been burning lately? Continue reading to get answers to these questions.

1. What is Ripple?

Ripple is really a payment solutions company, founded by Chris Larsen and Jed McCaleb. Their Ripple Transaction Protocol (RTXP) provides the cryptocurrency XRP. Ripple claims to provide faster, reliable, and affordable transaction solutions for financial institutions. The company has created a hundred billion XRPs and it currently holds 61% of the coins.
Blockchain is to to push out a billion coins per month.

2. Differences Between Ripple and Bitcoin

Both Bitcoin and Ripple are cryptocurrencies that use block-chain technology. But, you will find a fundamental difference between the two: unlike Bitcoin, Ripple cannot be mined. The currency is not set up as a mineable currency, and its own use is fixed to the Ripple network.

Both Bitcoin and Ripple use validating nodes for validating ledgers. Bitcoin has about 10,000 trusted nodes, while Ripple has only five. However, the business plans to add 11 more over the next 1 . 5 years. The five validating nodes are controlled by Ripple. XRP has received criticism for the absence of independently trusted validators. The XRP Ledger can be acquired to all, so anyone can download it and be a validator. Many companies run their own nodes on the Ripple network.

3. Reasons for Recent Price Hike of Ripple

The recent price hike of XRP has a lot related to the currency’s expected use by finance institutions and investment by believe-the-hype investors. Ripple has been successful in gaining banks as customers for its other products. Ripple’s xCurrent is recommended by financial institutions because it offers real-time communication and quick corrections, thus reducing delays in bank transactions. The company plans on introducing a fresh product, xRapid, that incorporates XRP. They see the new product as an opportunity to get banks to use XRP. Investors start to see the potential of the currency as a financial vehicle used by banks worldwide.