Although Ripple shares common characteristics with Bitcoin, it’s remarkably different. It does not possess a public blockchain to hold its transactions; however, it depends on cryptography. It has a network of nodes that validate its transactions, but these are not necessarily anonymous P2P nodes; instead, they are the participating banks and financial institutions. Ripple’s coins, known simply as Ripple or XRP, were not mined into existence, they were simply issued.
Unlike Bitcoin, which only exists by a distributed network of participants, Ripple is not only the name of the coin, but also the company that designed and developed the protocol.
What exactly is Ripple?
Ripple is considered an odd figure between other cryptos, since it does not possess its public blockchain. Internally, it works on a blockchain named 'Enterprise blockchain' ledger, does not use any proof of work, and very little is known about it.
Ripple was created as an asset transfer system, aimed at sending instant and secure transactions across network participants. The underlying idea was to transact anything that possesses a digital value, including fiat, cryptocurrencies, commodities, even loyalty points, and mobile credits.
A true comparison between Ripple and Bitcoin does not make sense, since the former is not a typical blockchain and is only managed by an individual company. While the Ripple is centrally controlled and operated, the Bitcoin operates on a decentralized platform; therefore, there is no point of rivalry between the two.
Ripple’s key features and specifications:
- Instant Payment option – other than being instantaneous, they can be done across any part of the globe; as opposed to conventional interbank settlement feature, which happens on the international SWIFT network.
- B2B-friendly focus – as a company, Ripple keeps a keen interest in engaging the key players in the financial industry; both banks and financial service providers are included. This network offers the opportunity of instant cross-border remittances and payments. All transactions are designed to be compliant with financial institution’s risk, privacy, anti-money laundering, “know your customer,” and anti-terrorism requirements.
- Full End-to-End Payments Service – A bank can use the Ripple network to send a cross-border payment, directly from the sending customer’s bank account, through to the receiving customer’s bank account. The Ripple network can handle the entire transaction, including the foreign exchange ones as well. It can also instantly calculate the cost of the transaction, down to the nearest cent. Further to that, it can send a signal to both the participating banks, when the end-customer has received their deposit for both banks to update their customer’s accounts.