The financial world is no longer oblivious to Cryptocurrencies. Digital currencies have infested Digital finance. Digital currencies are tricky to keep track of them. But not the time yet to jump the bandwagon. Today we are going to talk about XRP. XRP ranks among the top ten most prominent and impactful cryptocurrencies. Learn the top four things about XRP.
1. What is Ripple?
Ripple Labs founded Ripple in 2012 to ease end-to-end secured transactions. Ripple facilitates quick and inexpensive electronic transfers. It is an open-source protocol that allows exchanging a wide range of assets, currencies, and cryptocurrencies.
2. What is XRP?
Ripple Labs created XRP, a cryptocurrency that functions on the XRP Ledger. Unlike other cryptocurrencies, XRP does not allow transactions until most ledger holders complete the verification. XRP is like SWIFT, which is a system for international payments. You can buy this cryptocurrency as venture capital. It is also one of the top 10 cryptocurrencies by Market Cap.
3. What are its features?
- Transactions: XRP has a settlement speed of 3.94 seconds. And it can carry 1500 transactions per second consistently.
- More availability: Bitcoin supply has a cap of 21 million. Whereas XRP was pre-mined at launch with a count of over 1 million coins.
- Low fees: The transaction fee over this network is 0.0001 XRP.
- Large institutions: many large financial institutions use XRP for transactional purposes.
4. Pros and cons of Ripple:
- Intended for use by financial institutions and payment service providers.
- Every transaction is faster, done at a lower cost, and is energy efficient.
- Compared to Bitcoin, this method of mining is less complicated.
- Transactions need a universal consensus protocol.
- The default list of validatory includes a group of bank-owned servers. Hence, the system is not centralized.
- You need to store many XRPs in a cryptographically secure escrow account.
- The SEC has accused Ripple of selling $1.3 billion (about $4 per person in the US) in unregistered securities. It has sued the company.
The trend to invest in digital currencies has rocketed noticeably in recent years. Many people are keen on investing in bitcoin, as it is the forerunner of all cryptocurrencies. But there has been a boatload of other digital currencies to choose from. Ethereum is also one of the most prominent and in-demand cryptocurrencies. For more on cryptocurrency, read ‘What are Ethereum (ETH) and the difference between Bitcoin and Ethereum?’