What Is Ripple (XRP) – Everything We Need To Know About Ripple
By reading the article “What Is Ripple (XRP)” published in Adaas Investment Magazine, you will get acquainted with the XRP token and what are the risks and benefits in general. This level of familiarity can be enough when you need educational information about this topic.
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Table of Contents
Introducing Ripple (XRP)
Ripple is a San Francisco-based company providing financial services and payment networks, and XRP cryptocurrency is one of the company’s products. One of the biggest differences between this cryptocurrency and Ethereum or Bitcoin is how the token price is affected by the parent company.
For example, when you buy Solana cryptocurrency for investment, you are actually investing in the entire Solana platform, but on the other hand, when you buy XRP cryptocurrency, you are only investing in one product from the company not in the total value of that company.
Introducing Ripple’s products
Ripple Company has developed 3 products to cooperate with banks and financial institutions, and all of them are introduced under the name of RippleNet, which are:
The thing about Ripple’s products is that the XRP token is only applicable to the xRapid product and not to other value networks.
The xRapid Product introduction
The xRapid product has been developed to eliminate intermediaries and provide liquidity between interbank transactions. Thus, for banks that support XRP currency, it is possible to convert Fiat currency to XRP cryptocurrency and then transfer it to other banks that support XRP transactions. Currently, one of the most important challenges of this product is to provide liquidity to convert XRP cryptocurrency to Fiat currency.
The xCurrent Product introduction
By developing this product and overseeing the World Wide Web Consortium (W3C), Ripple has expanded its network to enable banks and financial institutions to record transactions instantly by providing sufficient liquidity.
The xCurrent Product introduction
The xVia product has been developed for communication between xRapid and xCurrent products. This product uses simple solutions to create these connections and was founded in 2018.
What are the features of XRP?
One of the most important problems in international business is international and interbank payments, which are sometimes very costly and time-consuming. With the development of XRP cryptocurrency, Ripple, a financial and payment company, has been able to solve this big problem with features such as very high transaction speeds and very low costs for sending money worldwide.
One of the biggest features of XRP against other cryptocurrencies for payment purposes, such as LiteCoin or DogeCoin, is the formality and legality of all activities under Ripple, which has led banks such as Santander or Union Credit to support XRP cryptocurrency transactions.
Another feature that the XRP provides is the new concepts and innovations of this protocol, which provide powerful capabilities such as high transaction speed and sufficient security for the XRP transactions.
How does the Ripple work?
When most cryptocurrencies are developed with the goal of eliminating intermediaries (banks and financial institutions) in transactions, Ripple tries to establish business relationships with banks and financial institutions by developing different products and XRP token.
An example to understand how Ripple works
Banks that support XRP cryptocurrency can use Ripple’s xRapid product to perform their international transactions with minimum cost, maximum speed, and security.
Thus, at the origin of the transactions, the Fiat currency is converted into XRP cryptocurrency, and after transferring through the protocols of Ripple’s products in the destination bank or financial institution, the received XRP cryptocurrency is converted into the desired Fiat currency. This facilitates interbank relationships and transactions by Ripple company.
Introducing the exclusive consensus mechanism of Ripple
While most cryptocurrencies use proof of work or proof of stake consensus mechanisms to validate and process transactions on their network, Ripple has been able to develop XRP cryptocurrency without blockchain by introducing the RPCA consensus mechanism.
XRP tokenomics review
Ripple has introduced its token to the cryptocurrency market under the acronym XRP and has chosen a different strategy for distributing its tokens.
token supply amount
In the official documents of Ripple cryptocurrency, the maximum supply of tokens has been specified as 100 billion tokens, all of which have entered the network on the first day and in the initial supply.
Token supply allocation
XRP tokens allocation is as follows:
- 80% allocated to Ripple Company
- 20% allocated to the founders of XRP token
XRP roadmap review
In the documents of the Ripple platform, they have not published an official roadmap, so we have identified the most important changes to the protocol over time as a roadmap for you.
In 2018, the possibility of deferred payment or checks, optimization of server decisions to approve and process transactions, the possibility of defining a white list for receiving transactions, and optimizations of the Distributed ledger have been done.
In 2019, the MultisignReserve amendment, simplifying the transaction checking process, improving database codes, and optimizing system integration have been done.
Ripple development team
It is interesting to know that the idea of peer-to-peer payment in different parts of the world was implemented 4 years before the invention of the Bitcoin cryptocurrency, by Ripple’s founder Ryan Fugger in 2004, which he named RipplePay. In 2013, the company launched its own network token called XRP, and like Bitcoin, it developed with the goal of eliminating intermediaries while deflating possible risks to peer-to-peer payments.
He is the CEO of Ripple Labs.
Before Ripple, he served as CEO of Hightail, as well as other successful experiences at Yahoo and AOL on his resume. He is currently the CEO of Ripple.
She is the Chief Financial Officer at Ripple.
With 20 years of brilliant experience, including PayNearMe, GoBank and Citigroup, she plays an important role in Ripple’s finances.
If you want to read all the members of Ripple’s development team, you can see the official members of this company through the link below.
Ripple company investors
The XRP platform has gained the trust of many professional investors as well as small traders after proving its performance. In this article, we have introduced 4 big investors in this project for you.
XRP cryptocurrency exchanges
To trade XRP token, users can use the following exchanges:
Also, You can visit the XRP cryptocurrency profile at CoinMarketCap.com to view the latest updates from exchanges that support this token trading and check their inventory through the following link.
The end words
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Ripple is a San Francisco-based company providing financial services and payment networks, and XRP cryptocurrency is one of the company’s products.