Learn about Ripple
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Ripple: what it is, how it works and what is the price of XRP
What is Ripple (XRP)?
XRP is the currency created and supported by the Ripple Labs company. What it seeks is to integrate with the traditional banking system and not replace or displace it, which implies a different technological development than the rest of the cryptocurrencies. For this reason, many people consider this project as a "Trojan horse" used by banks to enter this ecosystem. Whatever the position, it is undeniable that it is a different and novel idea, so we invite you to learn more about it.
Origin of Ripple
XRP is a cryptocurrency that was created and launched in 2013 by the company called OpenLabs, known today as Ripple. The company is located in San Francisco, United States.
The origin of Ripple dates back to 2004, 4 years before the publication of the Bitcoin white paper by Satoshi Nakamoto. Back then, Ryan Fugger was looking to create a system that would allow people to create their own money in a decentralized way, leaving the power in their hands. That is why he created the first version of the system, called RipplePay.com. In 2011, Jed McCaleb was developing a cryptocurrency with a system to verify transactions different from that of Bitcoin, in which the consensus of all the members of the network was used instead of using mining. In 2012, Jed teamed up with Chris Larsen and they pitched this project to Fugger, who gave them the mandate and they founded OpenCoin that same year.
A year later, in 2013, they created XRP. In 2015, they change their name from Ripple Labs Inc. to Ripple, a name they keep to this day.
Characteristics of the Ripple digital currency
- It does not work in a blockchain: the validation of the transactions is carried out by Ripple under its own consensus protocol.
- No Mining The coins were created from scratch and Ripple decides how many coins it releases to the market.
- Validation is very fast: operations are processed and validated in about 4 seconds.
- It is very scalable: it processes 1500 transactions per second.
What is XRP for?
The XRP currency is mainly used to carry out transactions with very low commissions, to the point of being considered as an alternative to the dollar. It is for this reason that it is used largely to be able to make international transfers, since it takes no more than 4 seconds to process payments.
A distinctive function of XRP is that it has become a payment ecosystem that offers its services to banking entities, so that they can issue their own tokens and interact with the different payment networks.
how does Ripple work?
Ripple is a system that works on independent computers around the world. The function they fulfill is to monitor the transactions carried out and keep a record. It is considered decentralized for this very reason: this registry is not in a central place.
What sets XRP apart is its use by banks, which can make transactions to other registered financial institutions in a new and much more agile way. In addition, the novelty is that they can do so to banks around the world, which is not always possible because the banks are often not connected to each other. This system prevents money from passing through a network of banks with their associated commissions.
Advantages and disadvantages of the XRP cryptocurrency
This new form of value transmission has many benefits for users and institutions. It is a very interesting idea and, without a doubt, it is different from the rest of the cryptocurrencies. Let's review its advantages and disadvantages.
Advantages of Ripple
The speed of transactions is the main advantage of this cryptocurrency. It can confirm transactions in less than 4 seconds, far outperforming most of the options on the market. It can process around 1,500 transactions per second, a huge difference compared to the 8 that the Bitcoin network can process.
Commissions are also a great advantage of the network. They allow you to send and receive with a very low commission cost, as well as to exchange XRP for any currency in the world and even different assets such as gold. In addition, it allows users and institutions to create their own cryptocurrencies on the platform.
Disadvantages of Ripple
The main disadvantage and also the main criticism of XRP is its high centralization. Beyond the fact that the processing of transactions does not take place in a single place, so we can say that it is decentralized in that aspect, it is the same company that can decide how many coins are launched on the market and when, since all the tokens have been “mined” from the beginning.
As we mentioned, although the validations take place in a decentralized environment, it is the same company that performs these validations and establishes the rules of the network. These reasons are what lead many detractors to call it the "Trojan horse" used by banks to enter the cryptocurrency ecosystem.
What will be the future of Ripple?
As we mentioned before, this cryptocurrency has certain characteristics that make it different from the others, so the analysis of its future will depend on other factors.
Since 2015, the Ripple company has had several problems with the American justice system. The first problem came that year, when the Financial Crimes Enforcement Network (FinCEN) fined the company for acting as a money service business without being registered. After other legal encounters considered “minor”, on December 22, 2020, a complaint was filed by the United States Securities and Exchange Commission in which Ripple and its executives were accused of violating investor protection laws. For this reason, experts believe that the future of XRP and Ripple will depend on the failure of this body in this case. According to these experts, if Ripple manages to emerge favored from this situation, it could appreciate even more and could even go public.
Legal issues aside, XRP is one of the coins that has gained the most value in 2021, starting the year with a value of $0.22 and reaching a value of $1.83 per token. Although it is a huge evolution, we must consider that its historical maximum value is $3.37. The future projection may be positive if we take into account this growth in 2021, but this value may increase even more if the ruling of the United States Securities and Exchange Commission is positive for the company.
Ripple Argentina - Frequently Asked Questions
how much could XRP go up?
If the ruling of the United States Securities and Exchange Commission is positive for Ripple, its value could increase even more. We must consider that its increase in 2021 was very large, approximately 730%.
how many XRP are there?
There are 100,000,000,000 XRP, which have already been created. Let us remember that the issue is controlled by Ripple, so there are currently around 48,140,000,000 in the market, which represents almost 50% of the total.
Who is behind Ripple?
The company that controls and issues the cryptocurrency known as XRP is called Ripple. The company's founders are Chris Larsen and Jed McCaleb and its current CEO is Brad Garlinghouse.
how much did XRP cost when it came out?
In 2012, XRP was listed on the different exchanges in the world with a price of $0.1 for each token. That price fell in the following years until its resurgence in 2014.
When was Ripple created?
The core idea of the company was conceived in 2004, although the company itself was created in September 2012 under the name OpenCoin.
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