What is XRP Ripple?
XRP Ripple is a cryptocurrency that exists as digital that exists as a digital asset. The XRP inhabited on a public ledger transferred through signed transactions. The XRP is transacted over a system known as a Ripple Protocol. Independent servers that work through the comparison of transaction records control the ledger. Validating servers could belong to banks or specific individuals. The Ripple Protocol provides an almost instant transfer of money among two parties across any border. Whereas Bitcoin is mined, XRP is made and owned by a company, Ripple.
How they were developed and years in use (history)
XRP first made it to the public in 2012. Chris Larsen, Arthur Britto, and Jared McCaleb developed the XRP Ripple currency. The idea was to allow users to be able to transact between themselves without interference from a central administrator or intermediary. Jared McCaleb, one of the founders of the XRP Ripple, has been in the digital currency business for a while even having worked for Bitcoin for a long time which gives Ripple more advantage.
It can be assumed that the Ripple cryptocurrency XRP has been in use for about six years since its advent.
Purpose of the token
As mentioned above, the XRP Ripple seems to have gotten much of its feet on the ground. The token is used for multiple purposes, some of which this article highlights as below:
- The XRP Ripple has offered various institutions the capacity to do borderless transactions. The XCurrent, for instance, is used by some banks for business and finance transactions. Such have minimized liquidity cost for the banks amongst many other financial institutions.
- The Ripple Company has been in business for a while and has helped many institutions. The XRP is a fast way of doing essential transactions. This currency makes the Ripple more versatile than it was before.
Some of the benefits
Trustworthy currency. The cryptocurrency market is still developing. There is still a lot of risk in cryptocurrency could be messy if one has invested a lot in it. Ripple has an excellent relationship with most banks due to its contributions to most of their systems. The same banks have banked on the success of Ripple which makes the XRP worthy of trust by any investor.
Full control of your coin. As a cryptocurrency such as Bitcoin is getting more demand, its prices are also rising. For this reason, amateur buyers and investors will look for more options to bet on, and the XRP whose value is growing will be the next big option. With such value, the coin will still guarantee the same control as Bitcoin.
Some of the negatives
Network fees are going back to Ripple. The Ripple pays network fees through its own XRP coin. For this reason, the biggest beneficiary of such benefits is the Ripple Company, which owns about 60 percent of the coins in the market.
An option to exit market could lead to a crush of the XRP currency. Ripple has tried to put most of its XRPs on Escrow which has been a way to create trust with interested people and has been increasing its production over the years which somehow earns it an here to stay cryptocurrency.