The functioning of the Ripple network is therefore based on the mechanism of trust represented by IOU credits (I Owe You) which represent real currencies. What is sent and received are specifically these values that are restored into “real” cash so it is called Ripple ways. The key is to understand that all debts, i.e. transactions, occur barely between topics who have organized a contract of confidence. Ripple marketings are instantly available, free and cannot reverse them back.In other words: XRP is the only currency circulating in the Ripple network and is the unit of measurement for the exchange of IOU credits. Which means that if I want to ship Dollars but only have Euros, the recipient of the transaction will buy my IOUs in Euros for a lot of Ripple, and sell IOUs in Yen for a few more Ripples. Here, in short, how the network and the cryptocurrency system works Cross-Chain Integration.
How many Ripples are there and what is their unit?
As already mentioned, the Ripple currency (XRP) is born and operates only and only within the network and the Ripple system itself. The virtual currency is divisible into six decimal places and the smallest unit is called a Drop (1 million drops make a Ripple). Unlike Bitcoin, which can be created up to 21 million units, Ripples have already been created up to the maximum number of 100 billion and are distributed only by OneCoin and not through mining as in the case of Bitcoin.
Ripple: what is it? The differences with Bitcoin
We immediately stated that despite being both cryptocurrencies, Bitcoin and Ripple have some differences to dwell on. The first, the defining one , was highlighted in the lines just treated: while with Bitcoin we mean only the currency, with the term Ripple we mean the widest network of transactions in which the virtual currency operates. Another difference is to be found in the speed of transactions. In the case of Ripple we are talking about 2-5 seconds, while in the case of Bitcoin it takes about 10 minutes. This is because the two cryptocurrencies using two different paths to reach consensus and therefore the operations to ensure the security of transactions can be more or less long. As we have already mentioned above, another difference with Bitcoin lies in the ability of Ripple to track any asset and therefore any currency, while the Bitcoin network only tracks the movements of BTC. Finally, another difference that we have already been able to glimpse in the previous lines is in the distribution of the two virtual currencies. Bitcoins will continue to be distributed up to 21 million, while for Ripple we are talking about a creation already completed and set at 100 billion. Here, in short, what Ripple is, how it works and what are its differences from Bitcoin.