Ripple is a blockchain technology that operates independently of the digital market. The platform was launched in 2012. Ripple core processes are similar to SWIFT payment systems but work in a completely decentralized manner.
The token for trading in this blockchain is XRP. The Ripple name is considered as the company name and network name, and its token is XRP. The transfer mechanism is on the XRP token and the Ripple blockchain structure. But by what standard does Ripple work?
What is Ripple?
Ripple is a decentralized peer-to-peer network used to transfer money digitally. Ripple is a global payment system that uses XRP to trade.
What is XRP?
XRP is used as an interface token to transfer one digital currency to another. To transfer digital currencies, you do not need to first convert them to Fiat currencies. Any digital currency such as Ripple can be converted to another token in different cryptocurrencies by its token. Each cryptocurrency port also has an XRP token accepts from Ripple, so there is no need to convert it to Fiat currency.
How the Ripple network works
The Ripple network does not work based on PoW algorithms such as Bitcoin or PoS such as Nxt, so it is not part of the ERC20 standard, which we will examine in the following. Instead, transactions are created based on a consensus protocol so you can verify it. Consensus algorithms work based on optimizing network integrity to prevent a recurrence.
A Ripple user performs transactions from different ports. The consensus algorithm first selects the specific distributed nodes, and these approvals will be refreshed every 5 seconds. Therefore, the Ripple network is a decentralized platform due to the lack of a single decision to select ninety and determine transaction approval.
Ripple tracks all processes of a currency through different ports or users. Transactions on Ripple wallets are all available on the network consensus ledger. But even among the history of publicly recorded transactions in the blockchain, the data is not linked to a specific account or user ID. However, public transaction logging can make the network more transparent.
Is Ripple erc20 token?
As we said, Ripple does not work according to the ERC20 standard and has an entirely separate network with separate protocols. But you may ask, what is the ERC20 standard? This standard represents Ethereum network protocols. Different ICOs cost more than billions of dollars to invest in crypto projects, and most of these new ICOs are on Ethereum standards. Most projects offer ERC20-based tokens and invest in them, so tokens based on Ethereum standards are ERC20.
In the ERC20 standard, Ethereum rules apply to all tokens. These rules include how users to transfer, verify, and access each token’s data. The protocol is used for more coordination between all tokens.
Ripple is one of the largest peer-to-peer networks globally, which currently has an extreme trading volume and turnover with the XRP token. As we said, it works based on Consensus algorithms and has nothing to do with ERC20 standard tokens. Therefore, the structure and rules governing it are also different.