Ripple or XRP is one of the most important digital currencies that has a high rating in the market. This digital asset is designed for international payments and has always been among the top 10 digital currencies. Currently, the market value of XRP is more than 38 billion dollars, and with this value it occupies the 6th place. Ripple was founded in 2012 to create a fast and convenient payment system on the blockchain platform. Stay with Digital Currency Signal for more information on Ripple.
What is Ripple (XRP) digital currency?
Ripple is an interbank network like the SWIFT network, which aims to make international financial transactions in the fastest time and at the lowest cost. Ripple was launched in 2004 by Ryan Foger and its main goal was to create a transparent and decentralized international financial system. Later in 2011, Jed McCaleb, who wanted to create a digital currency, along with Chris Larsen, bought Fager from him. In this way, the digital currency Ripple and XRP were created. In 2016, Ripple succeeded in obtaining a BitLicense from the New York Financial Services Authority, so Ripple’s activities have been completely legal since 2016.
Of course, the cooperation between the founders of Ripple did not last long, and in 2014, Jed McCaleb left the project due to differences in his feelings about the future of Ripple with other team members. Currently, Ripple is based in the United States and is still working on solving the long-term problem with the high cost of global transactions. But this company does not only work in this field; This company has provided services and other products to improve the quality of banking services and increase the speed of money transfer. Moreover, the target audience for this product is not only banks and financial institutions, and ordinary people can also use it.
Analysis of Ripple and the benefits of this digital currency
Digital XRP accounts for 2.04% of the total market and costs less than $0.8 per unit. The highest price per Ripple unit was $3.83 on January 4, 2018. Ripple’s daily trading volume is $3.62 billion and this amount will increase further. However, experience has shown that digital currencies have a growing trend. Overall, there are 50 billion Ripple units in circulation and will eventually reach 100 billion units. Kraken Exchange has the largest daily Ripple trading volume, accounting for more than 23% of all XRP trading volumes. This digital currency belongs to the Ripple company and is used on the RippleNet platform. RTGS system on this platform has increased the speed of money transfer and also created more security. In fact, this digital currency has the highest transfer and transaction speed and completes a transaction within a few seconds.
Advantages of Ripple Cryptocurrency
- Ripple’s transaction processing speed is higher than traditional banking networks and the Bitcoin blockchain.
- Ripple Network transaction fees are affordable.
- The Ripple network can be used to transfer fiat money and cryptocurrencies.
- The digital currency XRP must be paid as a fee to transact on the X-Rapid platform. The fees received will disappear over time and this will reduce the number of Ripple and increase its value in the long run.
Disadvantages of digital currency Ripple
- There is a lot of confusion about Ripple’s launch. (We’ll talk more about that later.)
- To create a dedicated Ripple wallet, you must first purchase twenty units of this cryptocurrency.
- The number of validating nodes in this network is limited.
- There is no fee for validating nodes in the Bitcoin network.
XRP cryptocurrency Is there decentralization?
One of the most important ambiguities raised about the Ripple digital currency is the rejection of its claim of centralization. Later, when we come to the discussion of comparing Ripple with Bitcoin, we will talk more about this issue; But critics believe that almost everything on the Ripple network is at the company’s disposal; They believe that Ripple is directly involved in the process of securing transactions.
The number of transaction validators on the Ripple network is limited; Meanwhile, other blockchain networks such as Bitcoin and Ethereum have no restrictions on this. According to the consensus algorithm of this network, each transaction is confirmed when at least 80% of the nodes approve it.
Ripple developers have promised to increase the number of validation nodes to resolve this ambiguity; But until today this promise has not been fulfilled. Ripple has repeatedly stated that it has no control over the XRP digital currency and its transactions. They believe that even if one day Ripple does not exist, its digital currency will continue to function. Of course, it is certain that if the activity of this company is stopped, Ripple’s digital currency will have practically no value.
However, the ambiguity of Ripple’s decentralization is not fully resolved. However, what is important is that Ripple continues its business without many challenges from this point until today. It seems that in the future this problem will not affect Ripple and its cryptocurrencies.
Ripple wallet for digital currencies
There is no digital wallet officially introduced by Ripple to hold this XRP cryptocurrency. Perhaps the purpose of Ripple with this project is to remove the responsibility from its shoulders to face the shareholders and investors of the cryptocurrency market. If you look at the application of this cryptocurrency, it can be seen that it is designed for use by banks and financial institutions. However, there are several active wallets that you can use to store Ripple, including Ledger, Coinomi, and Atomic Wallet. The downside of owning a Ripple is the fee you have to pay to set up your own wallet for this cryptocurrency. As already mentioned, to create a dedicated Ripple wallet, you must first purchase twenty XRP tokens to transfer this token in the Ripple network.
Predicting the future of Ripple (XRP)
What do you think will happen in the future for Ripple and XRP digital currencies? Isn’t this digital currency facing some sort of identity crisis? Can its developers overcome the criticisms and problems they face? All these questions are raised as Ripple is currently facing two serious competitors. Two of Ripple’s fiercest competitors are Swift, one of the oldest providers of international remittance services in the world, and Stellar, one of the active programs in the digital currency market.
On the other hand, the XRP digital currency is included in one of Ripple’s platform products, namely X Rapid; Therefore, this digital currency is used and partially destroyed. At the time of writing, less than fifty billion units of this digital currency have been distributed in the market. It seems that with the ongoing situation in the company Ripple, it is not possible to imagine a bright future for the cryptocurrency XRP; Unless the Ripple company starts working and implementing some programs, it will create a basis for increasing the use of this digital currency, and as a result, its price will rise.
The digital currency Ripple is a cryptocurrency that aims to create a global system for financial transactions to remove the limitations of the traditional financial system. The future of the Ripple currency depends on the development and expansion of the use of its network in the world, as the number of users increases, the value of Ripple also increases. Ripple’s price predictions for the coming years are good, from the point of view of many experts, this token will reach a price of more than $1 in 2025, and may even reach $2.