XRP, better known as “Ripple,” goes against the original ideals of the cryptocurrency revolution, but it is still one of the most popular cryptocurrencies today. At first glance, it seems like it’s nothing special. The price has remained relatively low since it was first introduced to the market, billions of coins are currently in circulation and although there is talk of an increase in value we have yet to witness it. So what is XRP and more importantly why has it managed to grab the attention of investors and enthusiasts?
What is XRP?
To fully understand XRP cryptocurrency, we need to take a look at the platform that offers it. Ripple is a payment platform that uses XRP and aims to make transactions easier and more affordable than transferring money through financial institutions, payment systems, and even some cryptocurrency solutions available today. This is accomplished with several proprietary software solutions. For example, one of its offerings, xCurrent, helps banks and other financial institutions make cross-border payments via cash payments, while another, xRapid, helps facilitate global transactions via illiquid payment methods using its XRP cryptocurrency.
While XRP is a real asset with value, it was created as a way to make transactions more convenient and accessible. It was also designed as a way to send money through various financial institutions around the world without having to go through the typical banking process, giving financial institutions the ability to exchange XRP in their local currency. As of this writing, the current price of XRP is around $ 0.45 and it is the third largest cryptocurrency in terms of market capitalization.
Why are Ripple and XRP so popular?
As we said, XRP developers went against the ideals of the original cryptocurrency revolution, which can be summed up in one word: decentralization. One of the reasons Ripple is so popular with financial institutions and investors is that Ripple is so centralized. In fact, there is a unique list of nodes that empowers the major financial institutions that participate in the project. Instead of using blockchain technology, the Ripple platform also uses its own technology, which requires verification from all users on the network for a transaction to take place, making it more manageable and regulated than other crypto-currencies. This makes it very valuable in the eyes of not only financial institutions but also governments.
Some of the other reasons Ripple was able to launch successfully relate to its smart business plan and understandable use case, the speed at which it trades, and the low costs associated with making these happen. transactions. It can execute a large number of transactions per second, and it is made scalable and liquid. Overall, XRP and the Ripple platform are specifically designed to meet the needs of financial institutions.
There’s no need to wonder why XRP is so popular when you understand the technology and planning behind the coin. As a cryptocurrency designed to serve banks, XRP has gained the attention and support of the right organizations and remains stable in its price as well as its track record. If all goes according to plan, XRP could be even bigger than it is now. This is something you should take into account when deciding if XRP is a valuable investment for you.