XRP (XRP)The exchange rate of one XRP at 13:36 UTC is 0.5138$
Ripple (XRP) is a platform older than Bitcoin. The project was originally launched in 2004 under the name “RipplePay”. The platform, along with the XRP cryptocurrency, was created by Canadian programmer Ryan Fugger. The XRP project was originally intended to be used as an exchange system for the local community. The platform slightly changed its work rules in 2012, when it was decided to create a separate accounting unit using blockchain technology.
Ripple characteristics
Simply stated, XRP is a comprehensive system that allows banks and financial service providers to quickly transfer money worldwide.
In the case of XRP, the transaction protocol does not necessarily support cryptocurrencies. You can also process transactions based on a fiat currency, commodity, or other unit of value.
The XRP token is a solution designed for banks and financial institutions. The task that he solves is a fast, global and secure money transfer. With Ripple, financial service providers can significantly reduce the transfer sending time and reduce the cost of cross-border transfers.
Ripple, a real-time settlement system, has its own cryptocurrency, XRP. The main task of XRP is the protection function in the transaction settlement system. Each burning irretrievably destroys several units of XRP. As a result, as the number of transactions increases, so do transaction costs.
In practice, this means that if someone wants to carry out a DDOS attack, they will quickly go bankrupt. In addition, XRP only serves as a means of payment because, like most other cryptocurrencies, XRP can be transferred between wallets.
The maximum offer is 100 billion XRP, with 46 billion currently in circulation. One unit of XRP is divided into many decimal parts, such as 0.000001.
A unique consensus algorithm is implemented (which differs significantly from “proof-of-work” and “proof-of-stake”). There is no mining process for XRP; it is allowed to be traded through Ripple. XRP has very high scalability. It can handle over 1,500 transactions per second (under extreme loads up to 50,000), comparable to the scalability of the Visa card.
XRapid is an indispensable product with waves. It allows to make interbank transactions in different currencies.
The XRP exchange rate rose sharply at the end of 2017, reaching $3.40 in January 2018. However, after that, the rating dropped sharply. Another significant increase was recorded in 2021. It is important to note that XRP is definitely not a niche cryptocurrency, as it is the sixth cryptocurrency in the world according to market capitalisation.
Ripple summary
According to some opinions, the course of this cryptocurrency is largely linked to the adoption of Ripple technology in banking. Currently, many large banks are using XRP. Moreover, it is estimated that more than 90 banks from around the world are actively using it. Enthusiasts around XRP are certainly hoping for further expansion among clients in the financial sector.
It should be noted that on the one hand, it is very encouraging that so many major banking institutions are behind XRP. On the other hand, it must be borne in mind that the Ripple platform can function without XRP cryptocurrency, so the impact of the increasing adoption of the technology proposed by ripple on the XRP exchange rate remains debatable for some.
The Ripple project definitely stands out from other platforms built on blockchain technology. It provides huge scalability and instant settlements. On the other hand, it does not provide the decentralisation that is the hallmark of many cryptocurrencies.
However, it is important to note that it is a project with a completely different purpose of creation than, for example, Bitcoin. Ripple has aspirations to compete with the SWIFT banking system or with other transaction systems. Which does not change that many users speculatively invest in XRP.
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