Many cryptocurrencies tokens in the market became popular lately. Whether it’s their usage or investing possibilities, choosing the right cryptocurrency for investing is very important. So you won’t regret it later in case you stake everything on a random token without gathering enough information about it.
When it comes to popular crypto tokens, Bitcoin(BTC), Ethereum(ETH), Dogecoin(DOGE) are some of the names that pop up in our minds. XRP is a similar coin and a world-class payment method at the same time that is taking a hype as one of the most successful U.S based startups.
What is an XRP (ripple) coin? How does it work?
What is an XRP coin (Ripple)?
The Ripple coin marked as XRP is the official cryptocurrency token for Ripple. That is a global scale payments network and a cryptocurrency at the same time. Found by Jed McCaleb and Chris Larsen in 2012, It’s very popular among cryptocurrency enthusiasts.
With an evaluation of more than $90 billion, crossing the market cap of $60 billion in august, XRP is one of the most used digital assets in the market at the moment. Providing an easy to use and faster processing of transactions, Ripple is a secure mediator for completing payments and fund transfers.
Hence, it is not a decentralized platform like some options available like other Defi platforms in the market. Instead, it is a completely open-source and peer-to-peer (P2P) cryptocurrency trading platform.
How does XRP work with Ripple?
XRP is the cryptocurrency of the Ripple platform. It is a platform that uses finance companies and banks to create a trustworthy network. Where users from all over the world can literally trade almost everything. You can even trade gold by using the Ripple network if meet the requirements.
With a group of trusted validators in their network, XRP transactions are somewhat different. In comparison to other cryptocurrency ledgers publicly available to everyone, Ripple is more secure in terms of mining XRP or using it as a service. More suitable for overseas transactions, Ripple transactions are faster and secure.
Unlike the popular cryptocurrency Bitcoin, Ripple does not follow the POW system to fulfill the requests from consumers and complete the transactions effectively. Instead of using the old methods to verify the transactions, Ripple uses a consensus protocol that ensures the safety and completion of the transactions for its customers.
To put it simply you can complete approx six transactions when using Bitcoin. Even those transactions can take up to hours to complete successfully. Whereas, when using Ripple backed up by XRP the transactions can be completed in seconds.
No doubt Ripple is a robust payment settlement system, with a native cryptocurrency XRP. XRP coin is one of the top five crypto assets in the market. So whether you use the Ripple service for transactions or trade XRP for profits, there’s enough potential for sure.
However, make sure you are aware of the risks tailored to making cryptocurrency investments. So you can make sure you are staking your funds at the right place. Do share this informative piece of content with others and don’t forget to share your suggestions with us.