Difficult to ignore it as soon as you have the minimum of basic crypto culture: the Ripple currency does not mine … or at least not directly.
The Ripple was designed to be used as currency for a centralized payment system. This is both of its interest and is the main reason why the cryptocurrency community often does not consider Ripple as a cryptocurrency like the others. It is in fact subject to institutional control.
How is the Ripple used?
The Ripple allows to realize bank to bank transactions quickly and without incurring large costs. Inter-company and P2P (peer-to-peer) transfers are also possible.
A Ripple transfer takes place in seconds. This is surprisingly fast compared to the minutes required to transfer the Ethereum, or at the times required for a Bitcoin transfer. As for the deadlines for bank transfers concerning standard currencies, they reach three to five days!
The average cost of a Ripple transfer is less than half a dime given the value of XRP at the time of writing this article. It is therefore among the lowest of all cryptocurrencies and represents up to several thousand times less than the cost of a transfer made by a traditional bank. To learn more, refer to our guide dedicated to this subject.
Why can’t we mine Ripple?
As a reminder, mining a cryptocurrency consists of perform calculations using computer hardware to validate transactions and thus contribute to the expansion of a blockchain (all of these transactions completed).
The Ripple is one of the few cryptocurrencies that it is impossible to “mine” in the strict sense of the term. When it was launched, 100 billion Ripple tokens were created and set the maximum number of XRP in circulation. Ripple (formerly OpenCoin) still holds almost 55% of the currency.
Ripple management can release up to a billion tokens a month, but rarely reaches this limit. It usually does this by publicly announcing the release of new tokens.
Without being able to mine Ripple, how do you get it?
Mining other cryptocurrencies and exchanging them for Ripple
Since it is impossible to mine Ripple, the only solution to get it without buying it directly is to start by mining other cryptocurrencies.
Choose the currency you want to mine (for example Bitcoin) and open a secure wallet suitable for this currency. Find out which ones we recommend for 2020 here.
Select your mining equipment : either a minor ASIC, or graphics cards offering sufficient performance. Then install the necessary software. Want to know all the details to mine Bitcoin? Consult our guide.
Start mining alone or by joining a pool (a team of miners) and take care to keep your currencies safe. In order to keep them, you can opt for a hot as a cold wallet (cryptocurrency wallet), it depends on the amount of XRP in question and your preferences.
Go to an exchange ((Binance for example) and exchange your mined cryptocurrencies for Ripple. It’s up to you to follow the news of Ripple Labs to anticipate releases of XRP.
Why would you want to get Ripple?
The advantages of the Ripple
The Ripple is therefore a premined token, which comes with a few advantages.
Ripple’s management has in fact set up a system aimed at deter hackers. Each transaction issued has a commission that automatically destroys an infinitesimal amount of the currency. Thus, the total number of tokens available will very gradually decrease, implying – in any case that is what the theory predicts, it is a little less fragrant in reality – an increase in the value of XRP.
Risks of the Ripple
The centralization just as the fact that the tokens are premined (created before the platform was opened to the public), at the heart of the very foundation of this currency, goes against certain important principles in the cryptocurrency sector. Ripple’s leadership monopoly on the currency is in fact a double-edged sword. His total control over the circulation of tokens also allows him to manipulate the course.
What to remember about Ripple
If mining Ripple is impossible in the proper sense of the word, it is however possible to obtain it without necessarily buying it, by exchanging another mined cryptocurrency. The indirect mining and centralization, as well as the non-preservation of anonymity shown by the Ripple, are the main reasons why some purists are likely to avoid it.
Other actors, including banks, would tend to see this centralization and control of its course as a level of security difficult to achieve with other cryptos.
In addition, its transactions at lightning speed and at low cost are attractive to these companies. You can see in the Ripple an interesting and promising cryptocurrency thanks to its disruptive functioning. For more information, discover how the Ripple Labs project is ambitious through this article.
The Ripple does not comply with the usual cryptographic rules. Despite all this, it is of considerable interest for the development of an international banking system which may no longer live with the times. This currency which is supposed to increase in value each time it is used invites in any case to see finance differently. With the ultimate goal of making exchanges between banks, institutions, companies and individuals easier, we quickly understand why Ripple seeks to establish many partnerships to expand its network.