by Hodler Ash 
What Is Ripple? Ripple Price Prediction 2020
Have you tried to wire transfer money to someone to be told that you shall wait for several days? This is because most financial services transfer money through slow, expensive and relatively limited systems like Western Union, Swift, MoneyGram, etc. On top of that, not all banks are connected by the same network.
There is not even a direct link or line between the banks to transfer money between themselves. Banks which do not have direct relationships with uses several intermediary banks to create network connections between each other in order to transfer money. Each bank undergoes steps to process the transaction and a fee for such a process. Sometimes wire transfers must Involve currency conversions which are more complex and expensive This is where Ripple creates a ripple.
To plot an example , If there is a need for Conversion of Japanese Yen to Nicaragua Cordoba this may be a difficult process as Japanese does not hold any accounts denominated in Nicaragua which in turn leads them to trade Yens for dollars which are high in demand in both Japan and Nicaragua and then from dollars to Cordoba. This process will be costly due to multiple conversions. Thus each time you need to transfer money through the banking system you need to find a path to transfer money. This is where Ripple creates a ripple.
What is Ripple?
Ripple is a U.S based technology company that uses a system of real-time payments for the exchange and remittance of currency. As the internet has its own set of rules or protocols to transfer information known as ‘HTTP’, RippleNet uses a protocol known as RTXP as a transfer tool to move value around the world. The creators of the Ripple, the RippleNet aims to move money as quickly as information moves. They refer it to as ‘Information of Value’
The idea for Ripple was first conceived by a Ryan Fugger in 2004 which was then known as ‘RipplePay’. This idea was them passed to Jed McCaleb and Chris Larsen i. 2012 who had previous founded OpenCoin which was related to electronic cash.
Unlike most cryptocurrencies that focus on individuals Ripple labs aim to serve and banks and payment providers by allowing them to lower transaction costs and expedite settlements.
Read: Introduction To Blockchain Technology
How is it different from other Coins?
RipplenNet is a network that is based on the Ripple Transaction Protocol (RTXP). The network owns certain types of computers known as Validators. Validators are spread across the world that maintains a shared ledger that contains data about who owns what. They ensure that all the transactions through the network are based on the rules of RTXP. Just like anyone can run a bitcoin node to maintain the bitcoin network, anyone can run a validator to maintain the rules of the ripple network.
There are entries known as ‘Gateways’ for anyone who needs to access the Ripple network to access bank accounts. Ripple is basically an alternative to the banking system on the internet of value called Ripple Net. Ripple products such as Xvia, Xrapid, and current are offered to companies to optimize their current solutions to transfer money around the world. Ripple creates a transparent form of system.
Unlike those cryptocurrency networks that use their own assets, ripple provides two kinds of currencies IOUs and XRP. IOUs are ripple currencies that can be stored on any ripple wallet. Any person can issue an IOU.
IOU, as the name suggests, represents something you ‘owe’ rather than something you ‘own’ which is an obligation to pay back something you have got in real life. It is not to be mistaken as an asset as an issuer is not true to his word such IOU s will be of no value. Each IOUs contain details of who had issued it and what it represents.
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For example, Jio is an IOU issued by Jio to pay back in Rupees. They can be issued for any type of assets including Dollars, Euros, Gold, Oil or even Bicycles. Each IOUs has a different credit line of which the money can be redeemed only from the person who had issued it. There is a trust line which indicates the extent of the amount to which a person will be able to pay. It is very similar to the Credit line by banks.
XRPs, on the other hand, is a tool used by banks for larger transactions. If a bank needs to transfer a large amount of money it shall not use several intermediary banks but convert the cash into XRPs. Two banks do not have to use XRPs to transfer assets between them. instead, they can keep an open tab using IOUs only.
XRPs are a form of final payment, unlike IOUs. They can be considered a tradable asset. Unlike bitcoin which can handle 7 transactions per second, XRPs can handle 1500 transactions per second. The validity of transactions is made through voting. When a validator receives a transaction it consults with other validators to check whether a transaction is valid or not. XRP supplies decrease over to make them more valuable as the goes. It can be considered as a long term investment as the buyer shall wait till it reaches the highest value.
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It may occur to you as to why there is a need for IOUs when there are XRPs. To simply put it, it may because XRPs are viewed critically and not accepted worldwide ad IOUs contain the value of the assets they represent.
Ripple (XRP) all-time high
XRP coins hit an all-time high of $3.84 USD on 4th January 2018.
Ripple price prediction 2020
It has been predicted that by the end of 2019 the price of XRP will be around $0.347 and will not show that much of a change in 2020 and can be around $0.70.
XRP investment is considered to be a long term investment as the rise is gradual. Although it is considered the cheapest and fastest means of payment beyond the borders.
