Overview of Ripple from LetsExchange

Overview of Ripple from LetsExchange

Overview of Ripple from LetsExchange

Ripple (XRP) is one of the earliest, controversial and popular cryptocurrencies. In August 2021, in terms of capitalization, Ripple briefly overtook the stablecoin USDT and took the 3rd line in the rating. The project is not similar to other digital coins either in purpose or technologically. And although controversy continues around him, he still has quite a lot of followers.

Historical information about Ripple

In early 2011, when Bitcoin was very young, few people thought about the imperfections of the new technology. Potential problems with scalability and high power consumption have been highlighted by Jed McCaleb, David Schwartz, and Arthur Britto. 

They were the first to draw a conclusion about the threat of concentration of more than 50% of the computing power of the network in the hands of one person or group of people.

The team began looking for a solution to create a ledger that could overcome these limitations. As a result, the Ripple code was created. At first, this name meant the open source project itself, the transaction protocol, the consensus book of the network and its internal currency, which was later called XRP.

In the early summer of 2012, the development of the XRP Ledger code was completed. 80% of the coins were placed at the disposal of the company, which was engaged in creating scenarios for their use. Now this company is known as Ripple Labs.

Unlike the crypto-currency projects that were developing at that time, Ripple Labs did not set itself the task of overthrowing the current monetary system. On the contrary, the team initially went in the direction of cooperation with financial institutions. The logic was extremely simple: if something works effectively enough, it does not have to be broken, if it can and should be improved.

At the end of 2020, the company had legal problems. Representatives of the American Securities Commission filed a lawsuit, arguing that Ripple (XRP) should not be considered a cryptocurrency, but a security. The case has not yet been finally settled.

How Ripple works

The platform was created for international payments and currency exchange. Ripple acts as a trusted agent between the participants in the transaction. The XRP coin can be converted into cryptocurrency, fiat money, gold or other goods. The platform functions extremely transparently and provides:

  • Protection and digital security.
  • Instant payments to anywhere in the world.

The network has gateways designed to serve financial institutions. Gateways are interconnected by “chains of trust”. The network is decentralized, that is, it does not have any authority that appoints validators or interferes in any way with the execution of transactions.

Characteristics of the XRP coin

XRP is a coin that functions on the network and serves to transfer value. XRP can be bought for investment, financing transactions on the network, as well as for exchange for other digital coins, fiat currencies or assets with a minimum single commission.

The supply of coins is limited and their entire supply has already been mined. XRP is not staked or mined, it can only be bought.

Where to buy Ripple

XRP is widely represented in the cryptocurrency market. You can buy or vice versa, exchange Ripple to USDT on Binance, Huobi Global, Kukoin, Kraken and many others.

Is Ripple a good investment?

Compared to many other assets, Ripple looks like a fairly reliable long-term investment. First of all, the project has existed for a long time and is a link between traditional and decentralized finance.

The low exchange rate of the coin gives a chance to successfully enter the market with a relatively small amount. It is not worth expecting a rapid sky-high growth from XRP, rather it will be a slow growth in the long term.

 

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