• The digital currency plunge to $5, 640, hitting the lowest price record of the year according to Coindesk price data.

Other cryptocurrency markets also suffered unusual losses, Ether (ETH) fell as much as 13 percent while Ripple (XRP), the third largest cryptocurrency by market capitalization dropped 15 percent. This downtrend movement took place as most of the cryptocurrency market also suffered notable losses,  declining from a total value of $210 billion earlier in that day to almost $180 billion by approximately 15:30 UTC according to CoinMarketCap.

To explain things for what reason did this drop happened, practically due to an upcoming hard fork of another cryptocurrency "Bitcoin Cash (BCH)" according to founder and CEO of BKCM, Brian Kelly.

"When you do a software upgrade, everybody usually agrees. But in this particular case, everybody is not agreeing."  Kelly added and a "civil war" followed. Traders are concerned that bitcoin and bitcoin cash markets would run into a slowdown or "chaos" after the software upgrade (hard fork).

"People started selling. That triggered stops. Everybody got concerned," Kelly explained. "And that's what happened today — the entire crypto-market sell down." Kelly expects it to be a "very short-term" event.

To sum up, there are three reasons for this drop-down event according to CNBC, its because of;

• Bitcoin cash Hard fork
• Crypto civil war in full swing
• Short-term selling event.

Like every other cryptocurrency platform, Ripple has also been experiencing rapid price increases in the last few years. It’s currently holding the third position on the market cap after Bitcoin and Ethereum. However, as a relatively new digital platform, most people are yet to fully understand what the blockchain is all about. Here are five important things you need to know about the Ripple blockchain:

• Ripple Network Is A Payment Protocol 

The Ripple network, also known as RippleNet, is a separate component of the ripple blockchain. RippleNet is a payment platform designed for enterprises to transfer assets across borders. It’s a distributed open-source protocol, peer-to-peer, and real-time payment system. 

The Ripple blockchain acts as a bridge currency between the exchange of other currencies. This means transactions on Ripple aren’t limited to XRP (its proprietary currency). It works conveniently with more than ten digital tokens.

It supports the exchange of tokens such as fiat currency, cryptocurrency, gold, commodities, airline miles, and any other unit of value. The network is a decentralized platform that allows the effortless transfer of any token while enabling both parties involved to use their preferred middlemen to receive money.

Moreover, the Ripple protocol allows instant confirmation of transactions, making for a smoother workflow in the business setting. This eliminates wasted time and energy. It can do this because all transactions and balances are held on the Ripple ledger, which is secured and maintained by a central administrator known as the Rippler.

• XRP Is The Virtual Currency For Ripple Network

 XRP is the cryptocurrency used for representing the transfer of value on the Ripple network. It’s more like a Ripple coin. Unlike other cryptocurrencies, the XRP token can’t be mined, making it more sustainable as new coins aren’t constantly created. Every existing XRP token was produced and distributed at its inception, and Ripple Labs control the dispersion.

Instead of the regular nodes used by other cryptocurrencies, XRP relies on nodes known as validators. These validators are approved and selected by Ripple Labs. The validation process can be done by any individual or one of the many global financial institutions. XRP, as a digital asset, is used to bring together the presently separated ledgers and blockchains.

• Ripple Blockchain Was Developed For Financial Institutions

Unlike other cryptocurrencies that were developed to eliminate the need for banks as intermediaries for financial transactions, this decentralized blockchain focuses on integrating the financial institution into the digital world. 

It provides options for the swift processing of remittances and money transfers. Ripple is described as a real-time gross settlement system because it can perform transactions in real-time across borders. 

Banks and other financial institutions are beginning to use Ripple as an alternative to the status quo of SWIFT (Society for Worldwide Interbank Financial Telecommunication), which is typically used for cross-border transactions.

Ripple works like SWIFT, but it’s generally considered to be more efficient in facilitating cross-border payments securely. It’s used by financial intermediaries as a secured asset exchange and remittance system when transactions involve international payments. 

• Ripple Blockchain Offers Fast Transaction Services

Ripple blockchain offers a near-instant and direct transfer between two partners. The blockchain has improved some of the major setbacks of the traditional banking system and other cryptocurrencies with its fast delivery of transactions. 

Ripple uses less energy to perform transactions within an average period of five seconds, making it the fastest digital asset for payments. This is a huge competitive advantage for Ripple, especially when wiring money internationally. 

The traditional system takes three days or more for wire transfer, while Bitcoin may take about two hours to deliver. Ripple can also handle significantly higher transaction volumes than other leading cryptocurrencies. It’s a reliable source of liquidity for cross-border transactions.

• Cheaper Transaction Costs

This leverage of cutting-edge blockchain technology is used to streamline payment services and reduce costs. The transaction costs for sending XRP are exceptionally cheap at a rate of 0.00001 XRP for a standard transaction across borders. 

This is considered almost free by users as the difference is obvious when compared with the transaction cost of traditional financial institutions. Even leading mined cryptocurrencies such as Bitcoin and Ethereum charge an average of USD$1.15 and USD$0.30 respectively. With Ripple, banks and other financial institutions can transfer money and assets across countries at a lower cost for transaction fees. 

Conclusion

For now, Ripple is the only blockchain focused on working with financial institutions to create a reliable system for securing a seamless means of making payments between countries. It’s a secured ledger with an open-source code base backed by a community of professional validators. Ripple’s XRP is here to stay for the foreseeable future because its purpose of enabling financial institutions to perform payments globally is relevant to businesses and consumers worldwide.