I’d like to post a series of articles under the name of “Crypto Classic”. It’s more like educating myself. But it could be helpful for some community members too.
Ripple (XRP) is a digital currency that was created by Ripple Labs in 2012. Unlike Bitcoin and other cryptocurrencies, Ripple is not based on blockchain technology. Instead, it uses a unique system called the Ripple Protocol Consensus Algorithm (RPCA) to verify transactions.
One of the primary goals of Ripple is to enable faster, more efficient, and more cost-effective cross-border payments. The Ripple network allows financial institutions to send and receive payments in any currency in real-time, without the need for intermediaries or costly foreign exchange conversions.
Another key feature of Ripple is its focus on partnerships with major banks and financial institutions. Ripple has established relationships with over 300 financial institutions around the world, including American Express, Santander, and Standard Chartered.
XRP, the native cryptocurrency of the Ripple network, is used to facilitate transactions on the platform. Unlike Bitcoin and many other cryptocurrencies, XRP has a fixed supply of 100 billion tokens, of which around 45 billion are currently in circulation. The tokens are used as a bridge currency in cross-border transactions, allowing financial institutions to exchange one currency for another quickly and efficiently.
In addition to its focus on cross-border payments, Ripple has also launched several other products and services, including xRapid, which uses XRP to provide liquidity for international payments, and xCurrent, which allows banks to settle transactions instantly and securely.
Ripple has faced some controversy and regulatory challenges over the years, particularly in the United States. In December 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, alleging that XRP is a security and that Ripple had conducted an unregistered securities offering. The case is ongoing, and the outcome could have significant implications for the future of Ripple and the wider cryptocurrency industry.
