The Ripple protocol is developed by Ripple Labs, which is backed by various investors. Ripple Labs differs from many other companies in the IT industry in that the revenues are not generated from advertising or fees. Those responsible only hope for profits from the increase in value of the 25 billion ripple coins retained. The primary business objective is therefore to spread the currency further and to increase the benefits for network participants. It is expected that more and more participants will want to buy Ripple, which of course increases the Ripple price accordingly. Because XRP also accounts for a significant portion of Ripple Labs’ working capital, the currency can be compared to a share. If you decide to buy Ripple Coins after a Ripple analysis, you can also benefit from the economic success of Ripple Labs. If you want to act as an investor, you should of course regularly inform yourself about the latest Ripple News. After all, strong price fluctuations are quite possible.
The advantages and disadvantages
One of the advantages is that the Ripple protocol is an open standard through which existing payment networks can be connected. The protocol can therefore be compared to the Simple Mail Transfer Protocol, which was developed in the 1980s to connect different message systems. In addition, Ripple is forgery-proof and enables fast transactions – normally it takes only a few seconds until a transaction is completed. Participants may also be mutually indebted via IOUs. Once the system has been finally expanded, it can serve as a universal translator between different currencies.
Where can users buy Ripple Coin?
The payment method is comparable to that of PayPal, with the difference that there is no central provider behind Ripple. Users can purchase from various payment service providers such as Bitstamp Ripple Coin by transferring an appropriate amount of money. The corresponding account balance is then stored in the network and the owner can dispose of it as required.
However, there are also some disadvantages. The network protocol makes it possible to move account balances between the various trusted third parties without the user’s involvement. This can pose a considerable risk for the individual user. Critics also see a disadvantage in the fact that Ripple is based on the concept of debt between individual users. However, these are not necessarily paid, which is why the promissory notes do not really have the equivalent value they represent. However, this aspect basically applies to all existing monetary systems.