Ripple Labs are the main developers behind Ripple, a platform for real-time payment settlement. This same team also developed the XRP coin, further cementing their excellence. The development team behind Ripple and XRP was created to help financial institutions top milestones and ensure seamless operations across the globe.
Ripple also allows transactions between fiat and cryptocurrencies, setting up the protocol and coin for a great future. That being said, per transaction fees are present and you will have to pay them with Ripple’s currency. Ripple charges a standard transaction fee of 0.00001XRP.
At its core, Ripple Labs designed a project set to replace SWIFT. Given its low transaction fees, we can see how Ripple Labs plans to take over the world of transactions. With XRP allowing people to avoid paying hefty bank fees for cross-border payments, we can expect that many businesses will start adopting it soon, which translates to a potential spike in value in the upcoming years.
Below, we dive deep into XRP and how it can change the world of transactions for the better.
The XRP crypto
The XRP cryptocurrency was launched in 2012. As with other cryptocurrencies, XRP uses a blockchain to power its operations. The blockchain can process more than 1,500 transactions per second, which is a remarkable feat.
The developers of XRP stated that they are working towards reaching VISA speeds, hoping to achieve that milestone in the near future.
XRP is available on all major cryptocurrency exchanges. But you should be aware that investing in crypto can lead to considerable financial losses if prices dip. Therefore, if you want to buy XRP, you should first review its whitepaper multiple times to pinpoint the direction Ripple is pushing for and whether you share its vision.
XRP is a crypto unlike any other. The following are some of the benefits that the XRP coin offers:
- Rapid transaction speeds.
- Larger financial institutions might adopt Ripple’s network.
- Transaction fees are meager.
How Ripple makes money and how it works
Although the company is not a cryptocurrency “dealer” per se, they do provide the XRP currency that runs on the XRP ledger. In addition, the developers built a network to solve the issues that come with international trade. For example, international transactions can take up to 3-4 days to complete, which can be extremely bad for conducting business. On RippleNet, this is not the case; transactions are processed in less than 10 seconds.
RippleNet uses a unique consensus model known as a unique node list. The primary goal of this product is to replace the slow SWIFT transaction protocols and prevent fraud from happening.
As we see large financial institutions task Ripple Labs to manage their transaction protocols and security, we can expect their coin to become a top investment for many crypto enthusiasts.
Is it genuinely decentralized?
Decentralization is one of the reasons cryptocurrencies have grown in popularity over the last 15 years. When we talk about decentralized currencies, we think of Ethereum and Bitcoin. Decentralized coins are owned by the holder, and financial institutions or governmental bodies do not regulate them.
Ripple does not scratch that itch. Ripple relies on network validators to ensure seamless operation. This gives validators power; they can take the coin and network toward their desired path.
How to use XRP
The XRP coin can be used just like any other cryptocurrency. You can trade with other crypto enthusiasts or make online purchases. You can also use Ripple to transact anywhere in the world if you’re interested in enjoying safe and secure transactions.
Should you invest in XRP?
Since XRP is not fully decentralized, most traders gravitate toward other digital, more decentralized coins.
Still, XRP may have something you find attractive, and sometimes your intuition can lead to huge profits. However, before you make the plunge, it is worth learning more about this digital coin and its developers.
If you want to invest in Ripple, you should know the team behind the project. Their expertise aims to completely sideline SWIFT and usher in a new way of making transactions. As a result, their coin, XRP, is gaining unparalleled traction and climbing the top lists of every cryptocurrency ranking article.
Soon, we can expect many businesses to adopt Ripple Labs technology to boost their business operations. Given that no business will want to wait 3-4 days to complete an international transfer, those that do not recognize the power of Ripple and XRP will lag in this ever-advancing business climate. As things stand, the XRP price is relatively low, and even if you are a newcomer to the crypto world, you can get into trading safely.
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