Crypto Spotlight: XRP
XRP has been available in the Wirex app for a while now. But in case you missed it, here’s everything you need to know.
What is XRP?
XRP is a cryptocurrency that runs on the XRP Ledger. It can also be used on the digital payment network, RippleNet, which provides a quick and easy way to send money overseas. In terms of XRP’s supply, there are currently 100 billion tokens in circulation.
XRP is often compared to Bitcoin in how it offers quick, low-cost cross-border transactions. However, unlike Bitcoin, XRP doesn’t use mining to validate transactions, instead relying on a consensus protocol to do so.
The XRP Ledger is maintained by multiple participants of the XRP Community. Each transaction made on the ledger requires an agreement (aka a “consensus”) from independent validator nodes. Much like other blockchains and ledgers, transactions cannot be reversed once they’ve been executed.
Who created XRP?
Chris Larsen and Jed McCaleb co-founded a company called OpenCoin in 2012, which began developing the Ripple protocol and network. The company changed its name to Ripple Labs in 2013, then just Ripple in 2015.
While the project was inspired by Bitcoin, XRP’s creators set about to create a better version. This involved creating a digital asset that was more environmentally friendly and built solely for payments.
What makes XRP unique?
Many major banks use RippleNet. Some see this as a contradiction of crypto’s initial intention: to eliminate them from the payment process altogether.
It’s also been said that RippleNet could provide a cheaper, more secure and more efficient alternative to SWIFT, a payment system currently used by banks all around the world.