What Is Ripple?

Ripple was founded in 2013 but really came to life in 2017 when it released its new white paper and started big transactions with major banks. Ripple is basically a private blockchain created by banks for them to use. They want to go on the Blockchain to send value from Bank A to Bank B. Their goal is to have lower transaction fees, reduce overhead, and increase profits. Since it is centralized and private, you could say it is a hybrid blockchain since blockchain technology is usually decentralized. Besides the fact, Ripple is very useful and practical. It is intended to address real issues in the financial sector. I’m going to list the pros and cons of Ripple below.

Ripple Pros

    • The Ripple community on Reddit is very large. Most importantly, it is very well-managed. There is engagement from both the development and corporate team and take their time to let the community know what is going on with the project.
    • Team Quality – Some of the brightest individuals from cryptographers, developers, engineers, business development, corporate management and legal. Very impressive team they have together.
    • Listed on ALL major exchanges.
    • No illegal activity that the coin is attributed to. Example: Bitcoin is associated with the dark web.
    • They look to have the right regulation framework set up. If regulation came out that negatively affected the whole crypto space, they are probably positioned to take the necessary steps to get into proper filing.
    • Market Cap is roughly 29B at the time of writing (15 Dec, 2017). This places them at the #4 spot currently in all of the cryptocurrency market.
    • Ripple’s white paper is very meticulous. They tell you everything you need to know about the project from both a basic and advanced perspective. They give you a thorough vision of where they want to go with the project and why you should invest your resources in working with them.
    • It makes processing international payments a lot cheaper and easier.
    • It can deal with 1000 transactions per second with zero latency. Example: If no direct exchange is available when transacting between 2 different currencies at a specific time, then you could just use the XRP (Ripple Coin) to pay.
    • Ripple has partnerships with big names in the financial Industry. These include ATB Financial, the Canadian Imperial Bank of Commerce (CIBC), National Bank of Abu Dhabi (NBAD), Reisebank, Santander, UniCredit and UBS. Most recently, Japan Bank Consortium and two of South Korea’s largest banks.
    • As Ripple labs grows their business, it should create an increase demand for their coin which should keep an underlying value for the coin.
    • Banks that are using this network have to hold a minimum of 20 XRP that ensure their account is legitimate. This creates somewhat of a value proposition for the coin.

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Ripple Cons

  • Of the 100 Billions XRP of Ripple coin made, Ripple owns 60%. The current circulation of coins is only 40B. If they were to dump XRP, Ripple would crash down to nothing. The creators have committed to locking most XRP up and plan on releasing this to the market at a slow and steady pace in the future.
  • Is investing into Ripple ethical or not? This is ultimately helping banking institutions profit more and is taking away from the “decentralization” aspect.

Pro AND Con

  • The value proposition surrounding the coin. Every transaction that takes place on their network requires 10 drops of XRP and the drop burns up. A drop is 1/1 millionth of an XRP coin and their are 100 billion of these coins. While this does add value to the coin, remember that there is a very large supply of coins and that currently banks are not require to use XRP on the network. By use, I mean send and recieve XRP for any of their transactions on the network. They can use whatever currency they like.

Where to buy Ripple?

You can buy Ripple on Binance. I recommend that exchange because I personally use them. If you need additional help with this, check out my guide on how to buy ALT coins.

*NOTE* If you are looking for a cryptocurrency exchange providing the best crypto-to-crypto rates on the market, check out Changelly. Note that exchange times may vary depending on network congestion.



Ripple seems to have positioned itself in a very good stance among cryptocurrencies. It looks to be in prime position for any regulatory direction if need be, has an impressive team, has partnerships with major banks, and it is solving real world financial problems by having lower transaction fees, reducing overhead costs, and increasing profits. All this has contributed to making Ripple the #4 largest cryptocurrency by market cap. Hopefully you have found this information somewhat helpful and informative.


  • Jon Seymour
    Posted December 16, 2017 3:20 am 0Likes

    Banks are required to hold only 20 XRP? This doesn’t seem like much a burden.

    • joshua
      Posted December 16, 2017 3:30 am 0Likes

      I reworded that part of my blog, thanks for pointing that out. I put that point into the pros section. I also added to the “pro and con” part that banks can send any type of currency on the network. They are not required to only use XRP so that isn’t particularly adding as much value as it potentially could.

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