Technology is getting promoted and developed to new heights as every year progresses. Therefore, digital transactions have become the future for making any form of payment. While businesses may still use cash transactions the most, the scenario will not be the same in a decade.
Therefore, the rise of bitcoin and many other forms of cryptocurrency has become a great step for the progress and use of digital currencies to make payments. Even though the use and trade of cryptocurrency are decentralized, it has become massively popular amongst investors.
Therefore, if you are interested in investing in cryptocurrencies, you definitely need to know about XRP. Read this article to learn more about XRP and its main benefits and uses. Also, after reading this article, you will be able to decide whether you want to invest in XRP or not.
What Is XRP?
The XRP cryptocurrency is made by a digital blockchain developer Ripple Labs Inc. The open-source blockchain developed by Ripple allows for faster cashless transactions and mining of funds. In addition, the platform is cheap and easy to use, with XRP being its flagship crypto product and its most valuable digital asset.
One of the most unique features of XRP that makes it different from other cryptocurrencies like Bitcoin and Ethereum is its partial decentralization. Unlike the total decentralization of bitcoin and Ethereum, XRP is partially centralized because Ripple can make adjustments to its policies as to what is legally and ethically right and wrong about the trade of RPX coin base.
How Is XRP Used?
XRP was launched in 2012, with its primary use being to act as a layer for digital monetary settlements between different banks. A typical example of how XRP works is understanding the transaction process behind it.
For example, if an American bank based in the US wanted to conduct monetary transactions with a Japanese bank, the bank needs to convert the money from US Dollars to Yen before paying. However, this process requires a lot of time and effort, and various governmental policies also affect how it is handled.
However, with XRP, this transaction has become much simpler because the American bank can simply make the payment by transferring XRP coins to the Japanese bank.
This makes the process much easier since XRP coins are decentralized and legal documentation and paperwork are way less using this method, saving both parties a lot of time and money.
People who have bought XRP coins can maintain a separate digital ledger called the XRP Ledger. This ledger is integrated with the blockchain network of Ripple and will help you keep accurate transaction histories and lots more.
Benefits Of XRP
The primary benefits of using the XRP cryptocurrency are:
1. Quick Transactions
XRP and other cryptocurrencies like Bitcoin and Ethereum share the same benefit – quick transactions between accounts. Since there are no bank accounts involved in the process, a lot of documentation and wasted time is reduced in favor of the fast and seamless transfer of funds.
All that is required to be done by all parties is to have an XRP Ledger maintained using Ripple’s blockchain technology and network. Amongst all cryptocurrencies, the use of XRP is the fastest since it takes only around four seconds to complete a transaction.
2. Scalable Operations
The use of XRP is highly scalable, allowing its wielders to use XRP coins in many places and for various situations. This is possible because XRP handles thousands of transactions every second, making multiple transactions daily possible.
XRP News shows that XRP handles 1,500 transactions simultaneously, while Ethereum vs Bitcoin only has the power for 5 to 15 transactions per second.
3. Distributed Networking
XRP has a pretty extensive network area under which all users will be able to transfer XRP coins from one holder to another. This is possible because many companies now accept the use of XRP coins, validating their importance as a currency. Currently, more than 150 businesses have acknowledged the use of XRP.
4. Green Transactions
Since XRP transactions are quick, the need for mining is dramatically reduced. Mining for cryptocurrency using powerful supercomputers has plagued Bitcoins since its rise during the pandemic. The energy cost associated with crypto mining is zero because of the XRP Ledger blockchain technology.
5. Stable Network
Since XRP is essentially a digital asset created by Ripple, it is constantly developing and improving. Exceptional engineers at Ripple have been doing so for ten years, which has helped stabilize the use of XRP coins and its integrated blockchain technology.
Drawbacks Of XRP
While the uses and benefits of using XRP coins might seem fantastic, considerable controversies surround its use in the stock market.
XRP and its creators Ripple Labs Inc, have come under scrutiny by many investors and financial advisors because of its status as a partially decentralized cryptocurrency.
Since the blockchain technology that helps with the use of cryptocurrency is under the control of Ripple, XRP cannot be considered as a fully decentralized cryptocurrency like Solana and Polkadot.
The current price of XRP is $0.81 per XRP coin. However, the price has been volatile recently, reaching heights of $0.8153 and even lows like $0.7926 in a matter of days.
How To Buy XRP?
Do you wish to know where to buy XRP, now that you are interested?
Well, it’s quite easy. Just like other cryptocurrencies, you can purchase XRP coins by linking your bank accounts to the blockchain technology called XRP Ledger. You also need to link your accounts with crypto exchange services, with a few of them being:
Should You Buy XRP Coins?
Due to its status as a partially decentralized cryptocurrency, it faces lots of scrutiny from many businesses, financial experts, and investors. This has caused its princess to fluctuate regularly, which is already a red flag for investors.
Judging these scenarios, we do not recommend the purchase of XRP coins right now because of the high risk of losses involved in it.
Frequently Asked Questions:
Right now, it is a bit risky to invest in XRP, primarily because of its partially decentralized status that is causing its price to fluctuate.
XRP is the smarter choice for investors because its use is constantly improving because of its integration with blockchain services of Ripple like the XRP Ledger.
XRP has provided 100 Billion XRP coins, out of which only 47 Billion are in circulation in the market.
Currently, the worth of 1 XRP coin is equivalent to USD 0.81.
The introduction of XRP coins has been revolutionary and pretty popular amongst investors in the crypto market. This is mainly attributed to fast and efficient blockchain technology like the XRP Ledger created by Ripple that allows for easier transactions.
Though its use as a common decentralized cryptocurrency has been pretty popular, its longevity has come under fire. This is because of its status as a partially decentralized cryptocurrency.
If you want to know more about other cryptocurrencies, we suggest reading about Cardano and Tether!