Ripple is more than just a Cryptocurrency. The Ripple technology acts as a global, digital settlement network, of which the development was driven by the ever-increasing demand for cross-border payments and the inconvenience caused when it comes to transactions between different payment systems. Unlike conventional bank-to-bank transactions that are time consuming, expensive and inefficient, Ripple transactions are hassle free, as settlement time can be as low as 5 seconds and conversion fee is eliminated since no currency exchange takes place.
Unlike the majority of Cryptocurrencies, Ripple is not decentralized. In contrast, the Ripple network bridges centralized fiat currencies and even Cryptocurrencies like Bitcoin and Ether. Ripple coins cannot be mined. Instead, the amount in circulation is controlled by the ‘Ripple’ company, which means that volatility can be caused for reasons other than just supply and demand.
Many investors expect the Ripple technology to revolutionize the way global transactions take place, which explains why Ripple’s popularity has dramatically grown.