Many cryptocurrency and digital tokens have shown up in the last few years. They don’t need to work on the same principles as bitcoin or ethereum, or any other cryptocurrency. Some of the digital currencies created tend to have different working functions, and their objectives tend to be different.
One should pay attention to different currencies and tokens. Click here to know about what is pi cryptocurrency.
One such popular name in the market is XRP and Ripple. Read more to know more about Ripple, rippleNet, and XRP.
About Ripple and XRP
Ripple is the company that has developed the token called XRP. This crypto token is popular in the market as an RTGS token. It is used for making real-time gross settlements that can be done across the glove using the rippleNet platform. The platform helps in real-time transactions in monetary value.
This digital token is not based on blockchain; instead, it is an open-source digital currency. A distributed ledger type database does the functioning and maintenance of the XRP ledger.
The rippleNet has a very similar functioning and objective as the SWIFT. It helps in remittances and international transfers in real-time. Banks and other organizations use it to complete international transactions with ease.
The simple working principle of XRP is that; the sender will first convert fiat currency in XRP, then send the same through Ripplenet, the receiver will convert the received XRP into their fiat currency of choice.
Different from others
Many might think that XRP is similar to BTC. But that is not the case. Unlike bitcoin and other cryptocurrencies, XRP is not public controlled and operated. It is operated by a single company and is not part of a peer-to-peer network.
Also, XRP is not part of the blockchain and instead is run by a distributed ledger server network. This network is operated, controlled, and validated by currency tokens and validating servers.
Today, the company known as Ripple was founded in 2004 by Ryan Fugger and was called Rippleplay in Canada. Later the company was acquired in 2012 and was called Opencoin. Britto, Mccaleb, and Schwartz acquired it. Again in 2013, it was renamed and was called Ripple Labs, and in 2015, it was finally named Ripple.
Currently, XRP is the 7th most valued cryptocurrency. The current market capitalization of the cryptocurrency is 44.630 billion USD. The maximum number of coins that the company currently has is 100 billion coins. And, the current circulating XRP in the market is 47 billion.
In 2021, XRP has seen some dramatic fluctuations. In the early months, the value of the crypto rose, and then in mid of 2021, it fell dramatically. The cryptocurrency has been quite volatile in later months, with constant rises and falls in value. Currently, the XRP is traded at a value of USD 0.89.
XRP is quite a popular choice as a cryptocurrency and is highly trusted by different organizations to make real-time settlements.