If you are considering investing in XRP, there are a few important points you need to be aware of. Understanding its definition and workings are critical components.
Ripple is a digital asset that connects banks and payment providers, creating an effortless experience when sending money globally. While transferring fiat currency may take days or even hours, Ripple transactions typically occur within seconds.
XRP is a cryptocurrency
XRP is a cryptocurrency used for processing international payments. With high liquidity and widespread adoption by financial institutions, its use helps make cross-border transfers quicker. Based on blockchain technology that organizes information into blocks, unlike most cryptocurrencies XRP cannot be mined and has an fixed supply of coins – 100 billion to be exact!
Ripple is a company dedicated to improving the global payment system since its formation. Their flagship product xRapid is used by banks and other financial institutions for fast and cheap transactions.
Ripple Labs manages and limits supply to 100 billion tokens; its management remains opaque due to ongoing legal battles with SEC over allegations that Ripple sells unregistered securities; though some legal victories have already been won; nonetheless XRP remains an intriguing cryptocurrency to follow despite any controversy that might surround its usage.
It is a digital asset
XRP is a cryptocurrency designed to serve as a bridge currency in international payments, significantly decreasing transaction times and costs for banks and other financial institutions. Furthermore, large enterprises often employ it for funds transfers.
The XRP Ledger is the technology at the core of Ripple network. Developed by Jed McCaleb, Arthur Britto and David Schwartz – three prominent developers known in the cryptocurrency community for their work on Mt Gox and Stellar (another popular cryptocurrency software), among other projects.
As opposed to Bitcoin and Ethereum, XRP is not mined, meaning there is only a finite supply available for public purchase. Because this creates scarcity-driven value in cryptocurrency tokens such as XRP, the company has put into place measures that prevent releasing large amounts of new coins at one time – something Bitcoin and Ethereum do not suffer from. The company has addressed this concern with an anti-exploit mechanism preventing large releases at one time.
It is a payment platform
Ripple makes money travel as easily and seamlessly as information. Their solutions are utilized by payment providers, banks and other financial institutions to speed up and lower the costs associated with cross-border payments. Utilizing Internet and blockchain technology they facilitate fast, reliable and affordable transfers of value between borders – the XRP currency being the cornerstone of these solutions.
Ripple transactions are confirmed in under five seconds and transaction fees typically cost under a penny. The network is decentralized with independent servers (validators) being managed by individuals, organizations and exchanges.
Ripple is in competition with well-established stablecoin providers such as Tether (USDT) and Circle (issued by PayPal in the U.S.). Competition between these stablecoins has been intensified by rising demand for faster and cheaper cross-border payments in Southeast Asia; when news of new trial transactions are announced in this region, Ripple prices often rise dramatically as speculation about these trials takes place.
It is a stablecoin
Ripple is a fintech company that designs global payment systems and offers its native digital asset, XRP, as an alternative way of sending and receiving money globally. Their technology is scalable and secure while interoperating with various blockchain networks; their platform connects financial institutions, exchanges, and corporations worldwide through RippleNet which offers one smooth way for sending and receiving funds globally.
Recently, the company unveiled a stablecoin pegged to the U.S. dollar. Their new USD-backed coin will be supported 1-to-1 by deposits, short-term US government bonds, cash equivalents, audited reserves and monthly attestation reports from a third-party firm.
Ripple announced its plans at a time when banks and payment firms have expressed concern over costs and lack of liquidity in local markets, with Santander and MoneyGram both dropping Ripple due to high costs and lack of supply in local markets. Furthermore, crypto markets are in an unprecedented bear run that has sent numerous assets tumbling in value while remaining steady – while XRP’s price remains firm.
