When it comes to crypto assets, one of the most popular and interesting coins to talk about is Ripple (XRP). This coin is known by investors as one of the crypto assets that is stable in growth. As of this writing, XRP is in 7th place on CoinMarketCap with a market capitalization of US$39.3 billion.
XRP is considered to be one of the most liquid among other digital crypto assets. Its growth from year to year is also considered the most smooth. For example, an all-time high that occurred in 2017, it was horrendous, because the value skyrocketed from US$ 0.006 to US$ 3.84 per chip.
Apart from being considered profitable, the XRP coin has other interesting characteristics that are rarely known and are different from other crypto assets. Come on, let’s know more and know the facts about XRP.
What is XRP and how is it different from Ripple
For ordinary people, they often see XRP and Ripple as one unit. Though, they are two different things, but are very much related to each other automate trading. Therefore, you must understand both.
Technically, Ripple is a payment platform in the financial industry. Meanwhile, XRP is a digital asset that works independently of Ripple. So, XRP acts as a bridge between different currencies transferred on the Ripple network.
Ripple’s origins date back to 2011, when Arthur Britto, Jed McCaleb, and David Schwartz formed a team to create an XRP ledger (XRP Ledger). This XRP Ledger is the blockchain on which the XRP token lives.
XRP is designed as an open source crypto asset and can be used by anyone, including Ripple. XRP Ledger is community based, which means only the user can decide whether it succeeds or fails.
Read also: Peter Brandt Has a Bullish View for XRP, Even Scores New ATH
Illustration of Ripple cryptocurrency (XRP) assets.
XRP Specially Designed to Speed Up Banking Transactions
Compared to other crypto asset coins/tokens, in terms of its purpose or use case , XRP is one of the clearest and has good prospects. This coin is used to create a real-time , live asset transfer system that offers a cheaper, transparent and secure alternative to current payment transfer methods.
The advantage of XRP over other payment systems is that it can complete transactions in 3-5 seconds and can handle 1,500 transactions per second which can be done real-time 24/7. In addition, XRP is decentralized with more than 140 validators globally, so it is guaranteed to be more secure and stable.
XRP is predicted to replace ordinary financial technology with the SWIFT system, which since the 1970s has been the mainstay for cross-border money transfers through banks.
World Economic Forum Recognizes XRP Can Be Digital Money
Another advantage of XRP is that it is recognized by the World Economic Forum (WEF) organization which sees it as relevant as a central bank digital currency (Central Bank Digital Currency/CBDC).
Reported by Daily Hodl , WEF said XRP is considered a relevant crypto asset in facilitating CBDCs in carrying out wholesale transactions , especially in intra or inter-payment transactions. Central banks in any country can leverage XRP to facilitate and support the use of CBDCs.
Some digital assets, such as Bitcoin, aim to replace government-backed currencies. XRP works with fiat currency on more than 10 digital exchanges to help transfer value across borders quickly and efficiently. XRP is not charged exchange rates or bank accounts.
The advantage of transactions made through this network is that it can convert fiat currency into XRP, before being converted back to other currencies. This is what makes the transaction fees small, but the process is shorter.
Also read: It turns out that this is the trigger for XRP to go up 50% more in one day!
Bitcoin, Ethereum, XRP
Illustration of Ripple cryptocurrency (XRP) assets.
XRP Becomes an Eco-Friendly Digital Asset
When compared to Bitcoin, XRP is considered more environmentally friendly. The reason is, this coin is not a crypto asset that is ‘mined’ like Bitcoin. Thus, its production does not require large computing power and electrical energy.
According to Ripple’s official website , if you compare the cost of producing one Bitcoin coin to power 3.67 homes in the United States in one day, XRP doesn’t need any of that.
The number of XRP coins in circulation is 100 billion coins. Indeed, the number of XRP coins is also more in circulation than Bitcoin which is only 21 million pieces. This number will neither increase nor decrease.
XRP is the Most Measurable Digital Asset
XRP is the fastest and most scalable digital asset. In its five-year track record, the technology and governance of this coin is so reliable that it is ready for institutional and corporate use.
Since its inception, the blockchain technology used by XRP Legder has been running flawlessly for seven years. Additionally, XRP Ledger can handle 1,500 transactions per second, while Bitcoin can only process up to seven transactions per second, any of which can take more than two hours to complete.
Analysts assess XRP can still be used as an attractive trading instrument , because it has high volatility. The XRP coin has been officially registered with the Commodity Futures Trading Regulatory Agency (CoFTRA). If you are interested in XRP coins, you can trade on Tokocrypto which has been listed since 2018.
Ripple (XRP) is available on Tokocrypto and can be traded with other coins/tokens such as Bitcoin (BTC), Binance Coin (BNB), Ethereum (ETH), Binance USD (BUSD), USD Tether (USDT) and Binance IDR (BIDR).