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Ripple: A Digital Payment Network

Ripple is not only a digital payment network but also is a cryptocurrency. It was founded in the year 2012 by Chris Larsen and Jed McCaleb in a partnership. Its main function is to work as a payment system for exchanges and also as a remittance system for all financial transactions across the globe. It is also like any other cryptocurrency that is a blockchain-based payment mechanism. It has its crypto token known as XRP. These tokens are pre-mined. Ripple works as the mediator for the exchange between the banks and other platforms for transferring money. To confirm transactions, ripple allows the consensus mechanism. As per market capitalization, ripple holds a valuable position amongst the top five blockchain tokens. If you want to invest in bitcoin, then you can read “guide to buy bitcoin” and start trading.

Ripple serves as an easy mechanism to transfer money whether it’s physical money like euros, dollars, yen etc. or any cryptocurrency like Bitcoin, Cardano etc. In its lists, some prominent banks work for it as an agent for facilitating financial transactions. It is an open-source network and is based on a p2p non-centralized platform.

It is also known as a cross border payment network that enables monetary transactions between different countries. It is a more viable option for swift and more convenient financial transactions.


Neither Proof of work nor proof of stake mechanisms are applied for Ripple working. The reason is that the ripple coin that is XRP is pre-mined currencies. Neither the verification process is sought through blockchain technology. RPCA (ripple protocol consensus algorithm) is the technology responsible for verifying and processing the transactions. All nodes are supposed to agree unanimously to verify the transactions. That is what makes ripple an economical currency and also its power consumption is low as compared to the coins that are needed to be mined.

The mechanism on which it relies is GATEWAY that holds a place of a mediator between the parties to give them an impeccable experience in transactions and further holds the trust of the parties. Through RippleNet it allows sending and receiving any form of money. Any person or any business can tie up with Ripple to start a gateway to allow them to act as a middleman to complete an exchange. XRP is the currency that works as a catalyst to exchange the crypto or fiat currency. The time consumption for a transaction to complete is 5 seconds. It is decentralized as no outside control is there even in absence of blockchain technology.


  • The time consumption per transaction is too low by providing a hasty transaction mechanism. For processing transactions, it takes around 5 seconds which is much less than the other cryptocurrencies. If you want to make any international payment, you can completely rely on the Ripple platform to exchange for its quick money transfer as compared to the centralized banks taking 2-3 days to transfer money.
  • The transaction fee is also very low, even a surge in its value keeps it stable.
  • It is decentralized even without using blockchain technology, its payment network is not controlled by any outside authority.
  • Its energy consumption is also very low as the ripple token that is XRP does not need mining which means it not only saves you time but is also environmentally friendly.


The topic shared above talks about one of the biggest payment networks that does not only transfer money but it can be bought and people can invest in its token like any other cryptocurrency. I wish I would have made this topic easier for your crypto journey. Have a happy investment, good luck!

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