Wondering what does ripple exchange rate mean? If yes, then you have come to the right place. There is no doubt that Ripple is one of the top cryptocurrencies available out there. The crypto coin came into the limelight back in 2017, and since then to now its been quite popular.
However, if you are someone who has no idea about Ripple and the exchange rate. Then I am here to help you out. In this article, I am going to give you a complete idea about Ripple. So let’s just head into the topic without wasting much of the time:
What is Ripple?
Before I tell you what is Ripple, the first thing that you should know is that Ripple is both a platform and a cryptocurrency. The ripple platform is an open source protocol that is designed to allow fast and cheap transactions.
And XRP is token used for representing the transfer of value across the ripple network. The main purpose of XRP is to be the mediator for other cryptocurrencies and flat exchanges. Also, Ripple can be useful in many ways.
For example, if you wish to exchange dollars to the euro, it can be dollar with dollars and euro with Euros. This helps in minimizing the commission. As highlighted above, the transaction cost on Ripple is $0.00001.
Also, the interesting fact about Ripple, after the transaction amount of $0.00001 ‘disappears’ from the platform and can’t be replenished. So, with every transaction, the world becomes $0.00001 poorer. It is designed that way to prevent spammer attacks.
Ripple was first created back in 2004 as a working prototype. However, the real story starts in 2013 when Jed McCaleb, the creator of EDonkey network, invited a bunch of world rank investors to invest in Ripple Labs.
Also, Just like Bitcoin, Ripple was never intended to be a simple payment option. And it is believed that Ripple is going to rule all the international transactions worldwide. The Ripple platform also has its own currency, which is known as the XRP. However, the platform also allows others to use their platform to create their own currency via the RippleNet.
And talking about RippleNet, well, it 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.
What does ripple exchange rate mean?
In simple words, the Ripple exchange rate means that the value of each XRP or the Ripple currency. If you want to buy or sell the currency, you would need to pay a certain amount of money to own it. And this is what referred to as the Ripple exchange rate.
So that was all for your question that says what does Ripple exchange rate mean. I hope this has cleared all your doubts. Also, if there is anything you would like to ask me, then do feel free to comment below, and I will surely help you out with your query.