Thread by @TeenieCrypto

1. Breaking down #XRP and #Ripple:
Ripple is a payment protocol that uses blockchain technology to process international money transfers. It offers low transaction fees and extremely fast processing times.

2. There's a common misconception that #Ripple is a cryptocurrency. Ripple itself is not a cryptocurrency, but it does have a native cryptocurrency called XRP. Those who like Ripple and want to invest in it can buy XRP.

3. The purpose of #RippleNet is to provide fast, cheap, and convenient cross-border transactions for banks. That makes it an alternative to SWIFT, the current international payments system that most banks use.

4. There are several advantages Ripple offers for international transactions:

The average transaction processes in five seconds.

The transaction fee is 0.00001 XRP, which was much less than a fraction of a cent even at the token's all-time high in price.

5. Advantages Continued:
The @Ripple_XRP1 cryptocurrency can be used as a bridge currency. This gives financial institutions a cheaper way to trade currencies. They can hold XRP instead of various types of flat money.

6. The XRP cryptocurrency uses a consensus protocol to verify transactions. Validators compare proposed transactions to the most recent version of the XRP ledger and accept legitimate transactions. For a transaction to be verified, the majority of the validators must accept it.

7. #XRP vs #BTC:
Even though XRP was created to be a financial tool it is like #BITCOIN in a way as both can be used to send and receive money, and can be used to make transactions.

8. The first major difference is that #XRP and #Bitcoin use different systems to verify transactions. Bitcoin uses mining to verify transactions and distribute new coins. Participants set up mining devices to solve complex mathematical equations.

9. The first to solve the equation gets to add a block of transactions to Bitcoin's blockchain. In exchange for Bitcoin mining, participants receive Bitcoin rewards with each block they add.

10. XRP on the other hand verifies transactions through its consensus protocol. A majority of the validators who review a transaction must accept it for that transaction to be approved.

11. The second difference between @xrptoolkit and @Bitcoin is that XRP is faster, cheaper, and more energy-efficient. Because of its consensus protocol, XRP is able to process transactions quickly at a low cost using minimal energy.

12. This makes #XRP one of the more environmentally friendly #cryptocurrencies. Bitcoin transactions, on the other hand, take an average of 10 minutes and have much higher fees than using XRP. Bitcoin mining also requires a lot of energy and has a large environmental impact.

13. #BITCOIN has a much smaller supply
The third difference is that bitcoin has a maximum supply of 21 million coins, and XRP has a maximum supply of 100 billion tokens. That's one reason the price of one Bitcoin is so much higher than the price of one #XRP.

14. The 4th difference is that Bitcoin and XRP have different distribution methods. Bitcoin is distributed through the Bitcoin mining process. New coins are added to the supply as participants mine them until the maximum supply of 21 million is reached.

15. XRP was pre-mined, meaning all 100 billion tokens were minted before it launched. Ripple locked 55 billion XRP into escrow and set up smart contracts to release one billion XRP from escrow on a monthly basis. When tokens are released, Ripple can sell as much as it wants.

16. I believe that #XRP has immense value because as financial institutions continue to use XRP it could significantly drive up the demand for #Cryptocurency. #Ripple also has a lot of potential as it could replace an inefficient and outdated mode of international money transfer.

17. #XRP and #Ripple already have a lot of ties to banks all around the world which is even more reason to be optimistic. If XRP continues to grow I can see it being the future of not only #Crypto transactions but transactions between financial institutions.