What is Ripple (XRP)?
What are the Ripple algorithm and XRP cryptocurrency, their interaction, and their benefits to the crypto community and the global financial system?
Ripple is a cryptocurrency platform that specializes in currency exchange transactions. The platform issues tokens that serve as collateral for a multitude of goods and services, including fiat money, exchange-traded products, and packaged services for corporations involved in online commerce. XRP is the cryptocurrency of the Ripple network, developed and released by Ripple Labs.
A History of Ripple and XRP
In 2004, software developer Ryan Fugger created the first version of the Ripple platform as a new solution in money transfer services. Later, during the widespread start of crypto projects, the platform transformed and acquired its look, which is more recognizable today. So, in 2012, the company launched its unique ledger (XRP Ledger).
The landmark year for the project was 2013. Then, Jed McCaleb, the creator of the eDonkey network, decided to create Ripple Labs to manage projects and recruit a team of the best professionals in the crypto industry. At the time, he did the seemingly impossible to get the company to grow and get impressive funds - using his authority and presenting a thoroughly accurate project, and he attracted a huge number of world-class investors to fund Ripple Labs and its products.
How does Ripple work?
Think about the scale of the project - the new XRP Ledger was designed and intended to compete with, or even completely displace, the now-famous SWIFT system used by banks around the world for interbank transactions.
The Ripple team eventually succeeded in creating a unique product - Ripplenet that is safer, more transparent and faster than SWIFT! Using Ripple protocols, it is now possible to directly transfer money over incredibly long distances at record-high transaction speeds.
The platform has been evolving and improving, with the development team being augmented by some of the world's leading crypto technology experts, ultimately paying off for the creators. From 2017 to today, Ripple has globalized to the point where such mastodons of the global economy use its protocol and other products as UBS, Santander, UniCredit, American Express, and many others, including major Asian banks and leading financial institutions in the Middle East.
What does Ripple mean?
XRP currently has a market capitalization of $42 billion. In the cryptocurrency capitalization ranking, Altcoin is in the top 10 and ranks 6th. The value of 1 XRP fluctuates around the $0.86 mark.
The features of the cryptocurrency from Ripple are the following points: Currency circulation and transactions are not handled by miners and their equipment, as in the case of Bitcoin and Ether (see our articles on "What is Bitcoin (BTC)" and "What is Ethereum (ETH)"), but by the network, servers located globally in central regions around the world.
A total of 100 billion XRPs have been created. Less than half of the tokens have so far been issued and are in market circulation. It is impossible to mine new XRPs; they can only be bought as they are published. Ripple releases a certain (+/-) number of tokens each year into market circulation. In other words, the resource limit has always stimulated and continues to stimulate demand for it in world history.
Ripple owns 6% of the total supply of tokens. On the one hand, this excludes any insider fraud on the impact on the exchange rate and capitalization and, on the other hand, helps in the development and formation of the cryptocurrency, insuring against global market collapses and force majeure.
Among the dense series of advantages and merits of the platform, the achievements of its cryptocurrency, and the pluses of investing in it, there is one (hypothetically probable, but actually tending to zero) minus - if half (the remaining part of unpublished tokens) is issued instantly; this will devalue the XRP cryptocurrency, bringing down markets. But such a prediction is no more conceivable than the possibility of a race of superheroes emerging from the ice of Antarctica on New Year's Eve during the Beach Hockey World Cup finals.
Experts in the field of cryptocurrencies, recognized financial analysts, as well as professional investors not only note the monolithic stability of the Ripple project and its technologies, compare the protocols of Bitcoin and other cryptocurrencies with Ripple and sum up in favor of the latter – but they also note the best security, transparency, and speed of the platform in comparison with the leaders in terms of capitalization.
Ripple began its history before the era of cryptocurrencies and crypto platforms. This system has proven its stability and performance, becoming a popular tool in the work of many well-known banks and corporations.
The XRP Altcoin is the super-child of the super-team that created the super-platform. The uniqueness of the technological solutions that enable cryptocurrency to market deserves the highest praise and, moreover, receives it from experts from all areas of the crypto world.
XRP, among other cryptocurrencies, is listed on the EXEX.com cryptocurrency trading platform. Our clients can take advantage of favorable leverage conditions and trade this cryptocurrency by selling and buying it with USDT. Even a novice trader can understand it because we have worked out the pros and cons of other platforms in detail and implemented our own technological and interface solutions so that comfort and clarity become your main pillars in working with the platform. In addition, you can find simple EXEX guides in the "EXEX Guide" and "Top 5 Questions".