Ripple refers to Real Time Gross Settlement System or RTGS which was created by a company called OpenCoin. It is called the Ripple Transaction Protocol or RTXP and is created on an open-source web protocol. So, Ripple stands for a digital currency as well as an open-source payment network through which this currency gets transferred. The main idea behind the Ripple system is to allow people to get rid of “walled gardens” in financial networks. So, they can do away with credit cards and banks, PayPal and other such institutions which will restrict access with charges, fees and currency exchanges. Ripples tried to improve the decentralized digital currency structure which was launched first by Bitcoin.
Ripple is similar to Bitcoin in many ways because it is also a form of digital currency which is based upon mathematics formulae. Both these currencies can be easily transferred from one account to another or peer-to-peer accounts so that no third parties are needed. Both the currencies have tried to deploy digital security techniques to prevent counterfeit coins. Ripple will guarantee faster transactions and better stability to the users of the Bitcoin. It will not rely upon any one company for managing and securing transactions. So, there will not be any waiting for block confirmations. Transaction confirmations will be sent through the network fast.
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