Ripple or XRP is a cryptocurrency and, at the same time, a free software platform designed to allow fast and cheap transactions. Its objective is to govern international transactions throughout the world.
And although Ripple has its currency called XRP, it also allows the platform to be used so that everyone can create their cryptocurrency through RippleNet. Next, it will explain what Ripple’s project is and the growth prospects in the price of its XRP coin.
Both Ripple and XRP are based on their database, powered by blockchain technology and working through a consensus mechanism distributed via Ripple Net.
Ripple is recognize as a solution to allow banks and financial institutions to use blockchain technology to improve their cross-border transaction systems. In other words, Ripple seeks to bring the advantages of the world of cryptocurrencies closer to the traditional gears of the financial system to speed up and make cross-border currency transfers cheaper. In this sense, according to Bit2Me, a platform for buying and selling crypto assets, Ripple is known as the “cryptocurrency of banks”.
Another characteristic of Ripple or XRP is that it is design to connect different payment systems to mobilize money in other denominations, quickly
Many currencies cannot be directly converte into each other. Therefore, banks are essential to use the US dollar as a mediator. Thus, a double commission converts “currency A” to USD and USD to “currency B”. Ripple acts as a mediator but is much cheaper than USD.
The average transaction time is 4 seconds. Compare that to an hour or more for Bitcoin and a few days for typical banking systems.
The user can issue their currency for quick and cheap transactions. For example, money can be creat to buy and watch old movies or exchange action figures between collectors.
It has made alliances with various banks, including BBVA, Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD, UBS, Itaú and even a partnership with the Federal Bank of India.
These banks have decided to use Ripple’s technology to make cross-border payments. In addition, Ripple and Japan’s SBI Financial Group have implemented a payment application called MoneyTap. And other banks, including Germany’s Reisebank, already use the Net to make transfers between banks in the network itself and those located abroad.
However, this does not mean that banks accept transactions with the XRP currency as a means of payment or to offer securities or credits; instead, they have adopted it technology to streamline their forex and remittance transactions.
Currently, the RippleNet network includes more than 300 financial institutions from 40 countries and six continents.
Among the main attributes of XRP, Ripple’s cryptocurrency, are the following:
As Ripple uses a consensus mechanism through a group of its servers and those of the banks to confirm transactions, it does so faster, with less energy use and lower transaction costs than Bitcoin.
Currently, the price of Ripple is 0.79 US dollars. The cost of this cryptocurrency increased 30% recently due to a favourable decision for the company in a lawsuit it faces from the United States Securities and Exchange Commission due to security flaws.
In 2021, the XRP cryptocurrency was up 277.5%, and investors are watching for the possibility of XRP breaking the $1 border in 2022.
Some specialized sites such as CryptoPredictions expect the price of XRP to remain at $0.77 in December 2022. With a high of $0.97 and a low of $0.58, on the margins.
Ripple remains a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company.