As the third most popular crypto asset in the world, Ripple (XRP) has made its way to the top. You might be interested in mining XRP if you’ve become intrigued by this currency.
Why mining is so attractive
With cryptocurrency prices rising, investors tried every trick in the book to obtain the coins. Cryptocurrency mining is one of the most commonly used methods: you can use your hardware to increase your crypto wealth.
Is mining Ripple possible?
So, can you mine Ripple(XRP) to join the rows of crypto owners? That may sound disappointing, but there’s simply no way.
Why has the team behind XRP selected to sidestep Ripple mining?
- A digital currency such as Ripple was primarily designed for banks rather than individual users. Despite the fact that many banks can use their own Blockchain technologies to avoid using this cryptocurrency, having a universally accepted cryptocurrency is easier. This is why over 100 banks have already adopted this asset. Most of Ripple’s success can be attributed to financial institutions.
- The Ripple blockchain is somewhat different from digital cryptocurrencies in that it has a decentralized approach. Ripple Labs remains in charge of operations even though third-party validating nodes authorize transactions.
- It’s not possible to mine Ripple because the entire stock of coins has already been released, so there’s nothing to mine.
How does it work?
We have already mentioned that proof of work is required to receive block rewards, which creates mineable cryptocurrency. In line with the growing difficulty of calculations, the coin’s growth slows down as we approach the maximum supply. The main advantage of this system is that the market can partially control how much effort is put into generating blocks. When costs are low, the price of mining can be higher than the value of the obtained coins, which leads to smaller mining activity.