Why Doesn’t Ripple Need Mining? (Can Ripple Be Mined?)

Why doesn’t Ripple need mining? Why doesn’t Ripple need mining? Why doesn’t Ripple need mining? Let’s take a look together.

Bitcoin was initially created as a decentralized electronic cash system, and over time, it has evolved into one of the largest cryptocurrency networks in the world (e.g., Ethereum). Its launch has benefited the entire industry through the advancement and development of blockchain technology: people can create and use various applications, digital assets, DeFi applications, and other types of products. So, why doesn’t Ripple support any type of network mining? First, we need to understand that Ripple is not entirely maintained by smart contracts.

When users want to exchange their tokens, a transaction pair is created, eliminating the presence of intermediaries. This makes transactions highly valuable; however, due to the lack of involvement from third-party providers, many exchanges are forced to cease operations or liquidate funds. If they find that customers hold a large amount of XRP and they switch to alternative methods such as anonymous wallets, their tokens will be immediately lost or frozen. Therefore, Ripple issuers require everyone to send their owned XRP to a designated address, and these addresses will be associated with the user’s Ripple account at a 1:1 ratio. This way, all exchanges can control the private keys. So, whatever you want to do, just put your Ripple in a cold wallet. Additionally, to prevent hacker attacks and ensure security, the Ripple team has designed a reward mechanism that attracts more developers to join and earn additional income for users.

Although Ripple is a project based on code, not all Ripple is publicly transparent, and fundamentally speaking, Ripple is not built on code like Bitcoin, nor has it undergone rigorous testing and auditing, nor can it necessarily prove that Ripple does indeed have sufficient security guarantees, so Ripple does not intend to use the concept of “mining” to solve issues.

Currently, most global financial markets are experiencing significant bubbles, and investors often see Ripple as a way to make money in speculative markets, as this model only produces higher returns under extreme circumstances and may lead to economic recession if risks arise. Furthermore, due to the intensification of the bear market, some companies are choosing to explore more cost-effective cryptocurrencies rather than considering investments. For investors, the best approach is to wait for market reactions.

Can Ripple be mined?

Can Ripple be mined?

Today is the last day of the XRP community. The Ripple team announced that all registered and XRP-holding users must undergo KYC verification to obtain XRP tokens by June 14, 2020. Afterward, Ripple will officially launch a decentralized exchange based on blockchain technology, and users can trade, exchange, stake, and earn rewards with various assets. XRP will also be repurchased and destroyed as an incentive within the ecosystem. (Note: Currently only supporting Ripple coin deposit and withdrawal services)

Regarding the question of “Can Ripple be mined,” three viewpoints are worth mentioning:

1. There is a high investment risk, and investors need to exercise caution.

2. It is not ruled out that there may be cases where the project party runs away or is forced to exit.

3. It is advisable not to participate in any form of investment activity, especially for those tokens involved in ICO or IEO projects that cannot be directly used to purchase products and services.