XRP, better known as “Ripple,” goes against the original ideals of the cryptocurrency revolution, but it is still one of the most popular cryptocurrencies today. At first glance, it seems that this is nothing special. The price has remained relatively low since it was first introduced to the market, billions of coins are currently in circulation and while there is talk of a rise in value, we have yet to witness this. So what is XRP and more importantly why has it managed to get the attention of investors and enthusiasts?
What is XRP?
To fully understand the XRP cryptocurrency, we must take a look at the platform that offers it. Ripple is an XRP payment platform and aims to make transactions easier and more affordable than transferring money through financial institutions, payment systems, and even some cryptocurrency solutions available today. This is accomplished with several proprietary software solutions. For example, one of its offerings, xCurrent, helps banks and other financial institutions make cross-border payments with liquid payments, while another, xRapid, helps facilitate global transactions with illiquid payment methods using its XRP cryptocurrency.
While XRP is an asset in its own right with value, it was created as a vehicle to make transactions more convenient and affordable. It was also designed as a way to send money through various financial institutions around the world without having to go through the typical banking process, giving financial institutions the ability to exchange XRP to their local currency. At the time of this writing, the current XRP price is around $ 0.45 and it is the third largest cryptocurrency in terms of market capitalization.
Why are Ripple and XRP so popular?
As we have said, XRP developers went against the ideals of the original cryptocurrency revolution, which can be summed up in one word: decentralization. One of the reasons why Ripple is so popular with financial institutions and investors is because Ripple is so centralized. In fact, there is a unique list of nodes that empowers the large financial institutions that participate in the project. Instead of using blockchain technology, the Ripple platform also uses its own technology, which requires verification from everyone on the network in order for a transaction to go through, making it more manageable and regulated than other cryptocurrencies. This makes it very valuable in the eyes of not only financial institutions but also governments.
Some of the other reasons Ripple has been able to successfully launch itself have to do with its smart business plan and understandable use case, the speed at which it completes transactions, and the low costs associated with completing said transactions. It can execute a huge number of transactions per second, and it is made scalable and liquid. Overall, XRP and the Ripple platform are specifically designed to meet the needs of financial institutions.
There is no need to wonder why XRP is so popular when you understand the technology and planning behind the coin. As a cryptocurrency designed to serve banks, XRP has garnered the attention and support of the right organizations and remains stable in its price as well as its roadmap. If all goes to plan, XRP could be even bigger than it is now. This is something you should consider when deciding if XRP is a valuable investment for you.