The advancement in technology has significantly changed the speed and ease at which money is transferred globally. The harnessing of blockchain technology with the development of XRP cryptocurrency has helped quicken and smoothen money transfer.
We often hear XRP and Ripple being used interchangeably. However, XRP is the cryptocurrency and Ripple Labs Inc. (referred as Ripple) is the company and network behind it.
XRP Cryptocurrency is one of the digital assets on the market getting more attention. Its value increased from $0.006 in January 2017 to $3.60 in January 2018. This was a whopping increase in a short span of time. The company that developed XRP has also increased in value in the U.S., after Uber, Airbnb, and Palantir.
With this increase, many people found XRP confusing and have many speculations about it. Therefore, let’s clear the air by explaining XRP in detail.
- 1 What is XRP?
- 2 History of XRP
- 3 How is XRP used?
- 4 What are the Benefits of XRP Cryptocurrency?
- 5 Ripple or XRP official website:
- 6 XRP Social Links:
What is XRP?
XRP is a cryptocurrency used for facilitating digital payments and transactions. XRP can be used as an investment by buying the coins as an exchange for another cryptocurrency. It can also be used to finance transactions on the Ripple network.
XRP cryptocurrency does not need a central intermediary. This makes it a convenient, fast, and efficient way of exchanging currencies. The cryptocurrency is a digital asset native to the XRP Ledger.
The XRP Ledger is open-source decentralized blockchain technology. It is used for transferring digital assets within 3-5seconds. The ledger uses a consensus called the Ripple Protocol Consensus Algorithm (RSPCA).
The consensus uses nodes in a blockchain network to maintain agreement and correctness. This consensus system has helped the developers of XRP maintain seven years of stability while expanding the product range.
History of XRP
XRP Ledger was launched under a money transfer platform called RipplePay by a software developer known as Ryan Fugger in 2012. But Ryan has been working on the concept since 2004. Ryan started by creating RipplePaay.com used as a precursor for different blockchain currencies. But it doesn’t get much attention from investors.
In 2001, Chris Larsen, Ryan Fugger, and Jared McCaleb come together as a team. They converted RipplePaay.com into a digital transfer. The digital transfer uses consensus to verify transactions instead of miners. This makes it different from Bitcoin and other digital currencies.
The team started to work on developing Ripple Transaction Protocol in 2012. This protocol provides fast transactions and direct transfers in fiat currencies. They also created a new value token called XRP to give the system more financial value.
How is XRP used?
XRP is used like any other digital currency. It is fast, less costly, and scalable when compared to other cryptocurrencies. XRP can be used either for transactions or as an investment.
The Ripple network can also be used for exchanging any other types of transactions. For example, if you want to exchange USD for Euros, you can exchange your USD for XRP on the Ripple network. Then use your XRP to buy Euros. This approach is faster and cheaper when compared to bank charges.
What are the Benefits of XRP Cryptocurrency?
Some of the benefits include:
1. Stability and cost-effective
Stability is often difficult when it comes to the world of cryptocurrency but XRP has proven otherwise. The RSPCA consensus mechanism is energy efficient which helps in avoiding potential destabilizing upgrades. Since its establishment, the ecosystem has remained strong and dynamic. More than 50 million ledgers have also been closed without any difficulties.
2. Fast transaction settlement
Transactions are done across the XRP ledger take 3-5 seconds making it the fastest transaction in the world of cryptocurrency. This is achievable because Ripple’s network of validators is available in every continent.
The RippleNet does not have pre-funding requirements for cash exchange or payments. This gives instant confirmation of transactions. are confirmed almost instantly. The inability to change details once posted on the XRP Ledger has also improved transparency and build investor’s trust.
3. Low fee with exchange opportunities
The Ripple network charges investors 0.0001 XRP to complete a transaction. This fee is very small which makes the network affordable and convenient for all its users. The network can also be used for exchanging other cryptocurrencies and commodities.
4. High Scalability
The RippleNet handles between 1000 to 1,500 transactions every second throughout the day. This is outstanding considering the average transactions per second (TPS) carried out by other networks. The network now handles the same transactions per second handled by VISA, which is about 65,000 in July 2019.
XRP does not only offer transparent and cost-effective transactions, it also offers high transactions per second.
5. Reliability and security
XRP has proven to be the fastest, most reliable, and scalable digital asset. It is now used for digital transactions in big institutions and enterprises due to its five-year track record of reliable technology and governance.
The XRP Ledger is also handled by a community of trusted validators. A team of full-time engineers is responsible for handling, developing, and maintaining the ledger. This has made the XRP Ledger more strong and resistant to a single point of failure.
Ripple or XRP official website:
XRP Social Links:
Xrp Twitter: https://twitter.com/Ripple?s=09
XRP Facebook: https://www.facebook.com/ripplepay/
XRP Linkedin: https://www.linkedin.com/mwlite/company/ripple-labs