XRP is known for acting as a ‘bridge’ between currencies. Learn interesting facts about the cryptocurrency with this detailed blog.
XRP is a cryptocurrency developed by US-based technology company Ripple. This cryptocurrency aims to improve cross-border payment transfers by reducing time and transaction fees. When using banks or traditional money transfer services, sending money abroad can be a headache. It can take days to submit a payment elsewhere, and the fees involved can be high, which is where XRP comes in. Ripple aims to change the way that banks transfer money abroad by allowing a more streamlined, fast, and cheaper process.
Here are five things you should know about XRP:
1. Speed
XRP has many advantages over other cryptocurrencies. To transfer Bitcoin from one wallet to another can take anywhere from 10 minutes to several hours. XRP, on the other hand, takes an average of just four seconds to be transferred, and this is the key that gives it its usability. It is also the most scalable cryptocurrency being able to perform 1,500 transactions per second. In comparison, Bitcoin can only complete 16 transactions per second.
2. Purpose
Unlike most other cryptocurrencies, XRP was created with a clear purpose in mind – to improve global financial transactions by reducing time and cost, which is what makes XRP so valuable. It has a real-world use case that is in effect right now, which is not always the case with crypto. Ripple aims to make XRP the standard for cross-border transactions.
3. XRP Bridges the Gap Between Fiat Currencies
There is a lot of talk in the blockchain community about how one-day crypto will replace fiat. While this could happen, the focus of XRP is not to replace fiat but to bridge the gap between exchanging fiat currencies. Somebody in Asia wanting to make a transfer to someone in North America will need to go through a third party, which can be slow and expensive. By transferring to XRP instead, the payment will happen in seconds for a fraction of the cost it would traditionally incur.
Ripple aims to move money around the world as effortlessly and efficiently as we do information, and XRP is the tool to do that. Ripple calls this vision the Internet of Value.
4. XRP Ledger
The XRP Ledger is an open-source, secure, decentralized blockchain supported by a community of validators that make it one of the most trusted and transparent blockchains around.
Some of its features include:
- No single party decides which XRP transactions succeed or fail,
- Fast settlements in 4 to 5 seconds,
- Responsible Software Governance from the Ripple team,
- Secure, Adaptable Cryptography,
- New Features for Smart Contracts to support cutting-edge financial applications.
5. Sustainability
Unlike Bitcoin, which needs to be mined to release the full 21 million into existence, the total supply of XRP already exists. The mining process of Bitcoin uses so much electricity that mining just one coin uses the same amount of power to power 3.6 US homes for a day. XRP doesn’t need to be mined, making it more sustainable and environmentally friendly than Bitcoin.
More and more global financial institutions are starting to use XRP to facilitate transactions. Ripple continues to build these relationships and provide responsible software governance. XRP has a market cap of $9.6Bn and is ranked no. 3 on CoinMarketCap. There is a maximum of 100 billion XRP. All 100 billion XRP ever created already exist, although not all are in circulation. Therefore XRP cannot be mined in contrast to Bitcoin or Ether.
Disclaimer
We do not intend this article to be investment advice, and we encourage users to conduct individual research on cryptocurrency. This article is for informational purposes only.