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I want to know does linux uses RIP?
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It can be configured to use RIP.
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Where and in which services?
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Zebra can do it.
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Does RIP is bound to Hardware Routers and not for linux set as routers?
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It can be used with both
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IS RIP the only protocol that sends routing update messages from one Router to Other router?
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Nope, a search for "routing protocols" on google should give many results. OSPF, BGP, IGRP, EIGRP, RIP etc... All use different routing metrics to determine the best path delivery etc. However depending on the situation certain routing protocols are superior to others.
edit to add link..
http://www.zebra.org/
