Ripple XRPUSD brings together one of the world’s most beloved cryptocurrencies with one of its strongest fiat currencies – the US dollar. This relationship allows Ripple to leverage all its capabilities against an economy with vastly differing influences and factors, creating one powerful combination.
The XRP protocol supports tokens representing fiat currency, cryptocurrency or any unit of value such as frequent flier miles or mobile minutes – these tokens differ from XRP the company as they do not belong to any particular entity.
XRP is a bridging currency
XRP is a global bridge currency designed to make international payments faster and cheaper. Each transaction on the Ripple network consumes some XRP, creating scarcity over time which has increased its value; yet some analysts remain wary about its viability as an international bridge currency, due to regulatory concerns and the volatility of cryptocurrency markets.
To use the XRP Protocol, it’s necessary to fund your digital wallet with a small amount of XRP tokens, which are then used as payment for any transactions conducted on this protocol, including its conversion of fiat currency or commodity into cryptographic forms like XRP.
Ripple is using its XRP coin to increase its value by serving as an intermediary currency between conventional ones. According to its latest report, its usage tripled in Q1 2020 with dollar transactions increasing 294% due to auto-bridging feature on the Ledger, matching offers from various traders on its marketplace.
It is a decentralized platform
XRP is a decentralized platform designed to serve as both digital currency and money transfer network, replacing SWIFT with an array of payment providers and digital asset exchanges.
Ripple network uses an open source protocol called a distributed ledger to verify transactions, with each one validated by independent servers known as validators which are managed by different organisations and exchanges. Confirmations is faster and cheaper than with Bitcoin while energy consumption is significantly reduced.
XRP cryptocurrency is an appealing choice among traders because of its fast and cost-effective transactions, with transaction fees typically under one cent. Unfortunately, however, Ripple system has its own set of drawbacks – including being involved with an ongoing lawsuit from Securities and Exchange Commission (SEC) since 2020 – yet has great potential to become mainstream over time.
It is a payment network
Ripple payment network uses its native cryptocurrency called XRP as the means for funding transactions on its platform. Intended as a replacement for SWIFT interbank transfer system, its developers have made great strides toward expanding clientele. Ripple currently holds 100 billion tokens with 55 billion held back for release periodically from its escrow account.
The XRP network offers banks and financial companies an effective, cost-efficient alternative to SWIFT for transferring money worldwide. It can process up to 1,500 transactions every second, round-the-clock.
To initiate transactions on Ripple, users enter information into an online ledger and separate servers or nodes validate it before accepting or rejecting it, typically within four seconds. Ripple also offers peer-to-peer payments between individuals.
It is a digital asset
Ripple’s XRP coin offers low transaction costs and fast processing times to make international money transfers much simpler and cheaper. Bank fees can often be exorbitant while payments take several days to reach their recipients. Ripple hopes to change that with its revolutionary coin offering low costs and faster processing speeds – something banks simply cannot provide.
Ripple Labs Inc., which manages RippleNet payment network and issues the XRP cryptocurrency, partners with banks such as American Express and Santander as well as providing its digital currency XRP for international transfers.
The XRP cryptocurrency is created through a process called mining, but most of its coins are held by the company that created it. Around 47 per cent of 100 billion tokens currently in circulation have been put up for sales or escrow accounts and transactions can be completed more quickly than with Bitcoin or Ethereum.
