What is XRP? Beginner’s Guide to Ripple (XRP)

There’s a big difference between Ripple and XRP that is often confused. In essence:

XRP is a token used for representing the transfer of value across the Ripple Network, also known as RippleNet, created and operated by Ripple Labs.

Specifically:

  • Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes. Ripple purports to enable “secure, instantly and nearly free global financial transactions of any size with no chargebacks.”
  • XRP is digital asset of Ripple, XRP is a token used for representing the transfer of value across the Ripple Network. With XRP, every transaction will take only 4 seconds. XRP consistently handles 1,500 transactions per second. Part of the payment platform incentivizes the use of XRP to create market demand. In total there are 100 billion XRP tokens, and there will never be any more created. Ripple owns 61 billion of the 100 billion tokens that exist, with the rest in circulation.
  • RippleNet: RippleNet is a network of institutional payment-providers such as banks and money services businesses that use solutions developed by Ripple to provide a frictionless experience to send money globally.. RippleNet uses blockchain technology. RippleNet currently offers 3 main products: xCurrent, xRapid and xVia, of which xRapid is the only product of Ripple that uses XRP.

Pros

  • Fast: Payments using XRP settle in 4 seconds, while ETH takes more than 2 minutes, BTC takes more than 1 hour and the traditional payment processing system takes 3 – 5 days.

  • Scalable: XRP consistently handles 1,500 transactions per second (TPS), 24/7, and can scale to handle the same throughput as Visa, outperforms ETH (15 TPS) and BTC (3 – 6 TPS).
  • Low cost: To protect the XRP Ledger from being disrupted by spam and denial-of-service attacks, each transaction must destroy a small amount of XRP. This transaction cost is designed to increase along with the load on the network, making it very expensive to deliberately or inadvertently overload the network. The current minimum transaction cost required by the network for a standard transaction is 0.00001 XRP, which is very low.
  • Distributed: Open-source technology, built on the principles of blockchain with a growing set of validators.

  • Stable: XRP’s five-year track record of stable technology and governance makes it ready for institutional and enterprise use.
  • No inflation: 100 billion XRP tokens has existed since the early days, and there will never be any more created.
  • The prospect of price increase of XRP is good: With the increasing adoption from banks and financial institutions, the prospect of increasing price of XRP is extremely positive.

Cons

  • The price increase of XRP depends heavily on news.
  • Price manipulation: Because all 100 billion XRP tokens have been issued and more than 50% belongs to Ripple Labs, the worry of price manipulation is completely grounded.
  • Fierce competition: Restricted by major competitor in the traditional market – SWIFT

Compare XRP and bitcoin (BTC)

Much like bitcoin, XRP is a cryptocurrency that is programmed based on mathematics and cryptography, with a limited total supply (bitcoin: 21 million BTCs, XRP: 100 billion XRP tokens). They can all be transferred from one account to another without any intermediaries or third parties and both rely on cryptography to prevent counterfeiting and fraudulent transactions.

Besides, there are also many differences between XRP and BTC.

  • If Bitcoin is created to be a peer-to-peer currency, eliminating the need for banks, financial institutions or intermediaries, then XRP is designed to be used by banks and financial companies.
  • If bitcoin network requires miners to confirm the transactions as well as ensure network security, then XRP net work does not have a miner.
  • Bitcoin uses the Proof-of-Work (PoW) consensus protocol, while the XRP Ledger uses its own consensus protocol, called the XRP Ledger Consensus Protocol, which works to ensure that double – spending is not possible on the network.
  • And while all 21 million bitcoins are still being issued, all 100 billion XRP tokens have existed since 2012.

However, unlike other altcoin that always wants to be “The next Bitcoin”, XRP has never intended that. What XRP aims to be is a “bridging currency” used by many financial institutions to make cross-border payments faster and cheaper than the global payment networks currently in use – with high cost, slow and involving many intermediaries.

Criteria when choosing a XRP Wallet

Not only XRP but other crypto wallets also need the following factors to ensure the security and good for users.

  • Private key: Defined as a password for you to login to your crypto wallet. And of course, make sure that only you know your private key.
  • Easy to use: Has a friendly interface, especially fast speed.
  • Development community: There is an active development community and long-term support.
  • Backup and security: This is a necessary function when customers want to protect their accounts better and more flexible.
  • Compatibility: The wallet must be programmed to be compatible with the current popular operating systems such as Windows, Linux, mac, Android, iOs.

Make sure the crypto wallet you choose meets the above criteria before selecting. If it does not meet the above requirements, you should consider more carefully.

XRP Wallets

  • Hot Wallet: Toast Wallet, Abra Wallet, Tiktakbtc, Rippex, Exarpy, CoinPayments, Exodus, GateHub,
  • Cold Wallet: Ledger Nano S, Ripple Paper, Trezor

Tiktakbtc Platform is a blockchain and cryptocurrency platform that supports storing, receiving, sending XRP with Tiktakbtc Wallet and buying and selling XRP with Tiktakbtc Exchange. You can store XRP as well as buy and sell XRP on the Tiktakbtc Platform easily, safely and reliably.

The XRP Ledger applies reserve requirements, in XRP, to protect the shared global ledger from growing excessively large as the result of spam or malicious usage. The goal is to constrain the growth of the ledger to match improvements in technology so that a current commodity-level machine can always fit the current ledger in RAM and the full ledger history on disk.

To submit transactions, an address must hold a minimum amount of XRP in the shared global ledger. You cannot send this XRP to other addresses. To fund a new address, you must send enough XRP to meet the reserve requirement.

The current minimum reserve requirement is 20 XRP. (This is the cost of an address that owns no other objects in the ledger.) Each new account must set aside this much XRP, which cannot be recovered or sent to others.

So when open XRP wallet at TiktakBTC, you need to deposit at least 20 XRP to activate your wallet. This 20 XRP will be retained in your wallet (can not withdraw) and is considered to be a maintenance fee, similar to the minimum balance in the bank.

Note: In the first time you send XRP to your Tiktakbtc wallet, you must always send more than 20 XRP to use as wallet initialization fee. This fee is only lost the first time you create your wallet.

There are something you have to remember when you make XRP transactions at Tiktakbtc:

  • The current minimum reserve requirement is 20 XRP. (This is the cost of an address that owns no other objects in the ledger.) Each new account must set aside this much XRP, which cannot be recovered or sent to others.
  • Your XRP wallet at Tiktakbtc is independent. So, you do not use TAG when using service.

Go to the Tiktakbtc website: https://tiktakbtc.net/en/ and click Login on the top right side.

If you do not have an account at Tiktakbtc, please enter this link: How to Register and Update the account information

Deposit

Step 1: Click Wallet, click Deposit or you can click DEPOSIT button (green button)

Step 2: Choose Ripple (XRP)

Step 3: You are going to see your address. You can copy your address or scan QR code to send XRP to your wallet at Tiktakbtc.

Withdraw

Step 1: Click Wallet, click Withdraw or you can click WITHDRAW button (yellow button)

Step 2: Choose Ripple (XRP)

Step 3: Insert properly the information about: your addressquantity that you want to withdraw.

After all, click WITHDRAW

There is a withdrawal notification, insert Google Authenticator code (or not) then click WITHDRAW.

Buy

Step 1: Click Exchange, click Buy/Sell

Step 2: Choose XRP/VNDT,then click EXCHANGE

Step 3: Enter the number of XRP you want to purchase. Then click CONTINUE

There is a confirmation. You will confirm and enter Google Authenticator (or not) then click Buy to finish.

Sell

Step 1: Click Exchange, click Buy/Sell

Step 2: Choose XRP/VNDT,then click EXCHANGE

Step 3: Enter the number of XRP you want to sell. Then click CONTINUE

There is a confirmation. You will confirm and enter Google Authenticator (or not) then click Sell to finish.

If you have any questions in  using services of Tiktakbtc, please feel free to contact with us through: https://support.tiktakbtc.net/hc/vi
we are already to support you anytime. Good luck!

The article is still being developed by Tiktakbtc in order to provide customers with the best information!

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