You can find a list of providers supposedly willing to accept Ripple's XRP, but things are always changing and some of those listed there may or may not accept it. The main use case for XRP should be the transfer of other currencies

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There is so much hype and confusion in the world of blockchain, distributed ledger and cryptocurrency, and one name pops up in this space - Ripple. I am often asked about the difference between Bitcoin (which is still the most popular blockchain-based cryptocurrency) and Ripple. In this article, I try to explain what Ripple is and how it differs from Bitcoin.

Before diving into this area, always keep in mind that investing in cryptocurrencies or tokens is highly speculative and the market is largely unregulated. Anyone who thinks so should be prepared to lose all their attachments (see {Link} for a reference).

Ripple vs. Bitcoin

While Bitcoin is a digital currency designed to pay for goods and services, Ripple is a payment processing, currency exchange, and transferring system for banks and payment networks. The idea is to have a direct asset transfer system (for example, the SWIFT payment system.

Bitcoin is based on blockchain technology, while Ripple does not use blockchain, but uses a distributed consensus ledger that uses a network of verification servers and crypto tokens called XRP (sometimes called Ripples).

XRP Token

XRP, the real cryptocurrency, is a token used on the Ripple network to facilitate money transfers between different currencies. Existing billing systems usually use the US dollar as a single currency for converting between other currencies. This leads to currency exchange fees and time costs, which is why bank transfers between accounts in different countries often take up to three days.

If you first convert the transfer amount to XRP instead of USD, there is no exchange fee and processing of payments is reduced to seconds.

Banks such as Fidor Bank, Santander, Commonwealth Bank of Australia and a consortium of 61 Japanese banks have said they are testing or deploying applications using the Ripple Network payment system.

XRP is a token used to transfer value through the Ripple network. Unlike Bitcoin, which creates new coins (to the brim) as a reward for contributors offering computing power to support the blockchain network, Ripple created 100 billion XRP coins during its inception.

Ripple recently added a new feature in which the company releases 1 billion of its XRP each month through a smart contract (escrow) system to help fund business transactions, motivate customers, and sell them to accredited investors. All unused tokens will be returned for escrow. According to internal sources, last month (first month of escrow) Ripple only used about $ 100 million and returned $ 900 million in escrow.

Where can I spend Ripple XRP?

Ripple was never designed as a currency or a payment method. However, there is a small list of sellers who accept payments with XRP tokens online. For example, you can buy honey, hot sauces, and decorations. You can find a list of providers that are supposed to accept XRP from Ripple, but things are constantly changing and some of those listed there may or may not accept it. The main use case for XRP should be to transfer other currencies (or commodities like gold or oil) through the Ripple network. “Whenever a money (or asset) transfer company such as a bank uses the network to transfer and invoice, the expense will be deducted from XRP as a small amount. This is what gives XRP its value: in a sense, they can be seen as "fuel" for the machines that make these transfers.

How can I invest in Ripple? Should I?

Ripple is certainly gaining traction, and the list of organizations using it shows that tokens themselves are becoming a valuable commodity. In fact, the value of XRP token has overtaken Bitcoin or any other cryptocurrency last year. In early 2017, XRP was valued at $ 0.006. They peaked at £ 3.87 earlier this year, before quickly dropping to their current value of around $ 1 per XRP.

XRP is traded on cryptocurrency exchanges such as Binance and Poloniex. As a rule, they cannot be bought with the existing national currency (fiat); You must first buy Bitcoin or Ethereum!