Ripple or XRP is a cryptocurrency and, at the same time, a free software platform designed to allow fast and cheap transactions. Its objective is to govern international transactions throughout the world.
And although Ripple has its currency called XRP, it also allows the platform to be used so that everyone can create their cryptocurrency through RippleNet. Next, it will explain what Ripple’s project is and the growth prospects in the price of its XRP coin.
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What is Ripple (XRP), and How did it Come About?
Both Ripple and XRP are based on their database, powered by blockchain technology and working through a consensus mechanism distributed via Ripple Net.
Ripple is recognize as a solution to allow banks and financial institutions to use blockchain technology to improve their cross-border transaction systems. In other words, Ripple seeks to bring the advantages of the world of cryptocurrencies closer to the traditional gears of the financial system to speed up and make cross-border currency transfers cheaper. In this sense, according to Bit2Me, a platform for buying and selling crypto assets, Ripple is known as the “cryptocurrency of banks”.
Another characteristic of Ripple or XRP is that it is design to connect different payment systems to mobilize money in other denominations, quickly
What is Ripple Used for?
For Currency Exchange With Low Commission
Many currencies cannot be directly convert into each other. Therefore, banks are essential to use the US dollar as a mediator. Thus, a double commission converts “currency A” to USD and USD to “currency B”. Ripple acts as a mediator but is much cheaper than USD.
Fast International Transactions
The average transaction time is 4 seconds. Compare that to an hour or more for Bitcoin and a few days for typical banking systems.
Payment Ecosystem
The user can issue their currency for quick and cheap transactions. For example, money can be creat to buy and watch old movies or exchange action figures between collectors.
Which Banks Accept Ripple?
It has made alliances with various banks, including BBVA, Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD, UBS, Itaú and even a partnership with the Federal Bank of India.
These banks have decided to use Ripple’s technology to make cross-border payments. In addition, Ripple and Japan’s SBI Financial Group have implemented a payment application called Money Tap. And other banks, including Germany’s Reisebank, already use the Net to make transfers between banks in the network itself and those located abroad.
However, this does not mean that banks accept transactions with the XRP currency as a means of payment or to offer securities or credits; instead, they have adopted it technology to streamline their forex and remittance transactions.
Currently, the RippleNet network includes more than 300 financial institutions from 40 countries and six continents.
Characteristics of Ripple and How It Differs from other Cryptocurrencies
Among the main attributes of XRP, Ripple’s cryptocurrency, are the following:
- It allows operation as a daily and efficient payment system; faster and cheaper than Bitcoin.
- It is for institutional, business and private use.
- Your operations are processed and validated in 4 seconds.
- It can process 1,500 transactions per second, which implies that it has greater scalability than other cryptocurrencies.
- It can be exchange for any cryptocurrency, fiat currency, or securities such as gold with a minimal fee.
- All XRP coins already exist; they cannot be mined. If necessary, Ripple can increase the issuance of tokens.
- The more banks use the Ripple protocol, the higher the value of XRP will be.
As Ripple uses a consensus mechanism through a group of its servers and those of the banks to confirm transactions, it does so faster, with less energy use and lower transaction costs than Bitcoin.
What are the Benefits of Ripple?
- It is design initially as a daily payment system, so it is much more helpful than Bitcoin in these cases. As a result, transactions are much earlier and cheaper.
- Ripple has started as an official organization, as its primary purpose is to be use by banks. Therefore, it is not subject to multiple regulatory controls like many other cryptocurrencies.
- Ripple can be exchange into any currency or value (such as gold).
What is the Current Price?
Currently, the price of Ripple is 0.79 US dollars. The cost of this cryptocurrency increased 30% recently due to a favorable decision for the company in a lawsuit it faces from the United States Securities and Exchange Commission due to security flaws.
In 2021, the XRP cryptocurrency was up 277.5%, and investors are watching for the possibility of XRP breaking the $1 border in 2022.
Some specialized sites such as Crypto Predictions expect the price of XRP to remain at $0.77 in December 2022. With a high of $0.97 and a low of $0.58, on the margins.
Conclusion
Ripple remains a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company.
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