XRP is a native Cryptocurrency based on the Ripple network, designed to fulfil financial services needs. Since its launch, XRP has been among the top 10 cryptocurrencies by market capitalization. Currently, it is number seven, with a market cap of $196 billion approximately.
An XRP ledger is a blockchain network on which the XRP token runs was introduced by Jed McCaleb, Arthur Britto and David Schwartz. However, XRP forecast is positive, which means it can give significant return in coming years.
What is Ripple?
Ripple is the company that launched the ERP coin; it's all the transactions processed by this company. According to Pat White (CEO of Bitwave), ripple was introduced to replace SWIFT (the leading money transfer network) and settlement layers of major financial institutions.
One can use ripple for exchanging various fiat and cryptocurrencies. It acts as the agent between two parties as a network; its main purpose is to confirm that the exchange transactions went through properly. However, a person has to pay some fees in the form of XRP for completing every transaction. Therefore, one can buy XRP as an investment and use them for payments through the ripple network.
How to use Ripple and XRP?
A person can use these coins in many different ways; it is like every normal digital currency that can be used for regular transactions, or one can treat it as a potential investment. In addition, a person can use these tokens to exchange a particular currency.
For example, suppose you want to exchange US dollars with the Canadian dollar, then first you have to exchange your US dollars with XRP using ripple network, and later you can use them to buy Canadian dollars. This is one of the fastest and cheapest ways of exchanging currency, as there is no need to visit banks or money change exchanges; this can be done while sitting at home.
What makes XRP unique?
XRP was developed with the aim that it will be much faster the cheaper than all other cryptocurrencies so that it can be sued for making regular daily transactions. But, it is not used in the way developers initially thought. Therefore its developers have shifted towards institutional usage of XRP. Now, it can easily exchange any currency or asset like gold by taking a minimal unified commission.
How is ripple secure?
As we have already discussed, ripple is a digital currency that runs on a blockchain network, which can’t be hacked. Transactions are made peer-to-peer, which means there is no involvement of a third party. Using XRP, one can make payments by hiding their identity. In addition, unlike a bitcoin, the transactions are made in a decentralized mining industry and processed by a committee of pre-owned stokeholds of XRP.
Conclusion
XRP is a great innovation in the Cryptocurrency world. It is best for those who want to make quick transactions in a very cost-effective way. Surprisingly, this digital currency is accepted by more than 4500 merchants, making it perfect for day-to-day transactions. In addition, XRP trade is an excellent way to create regular income.
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