Similar to how Ethereum is the name of the platform that makes it easier to trade Ether, Ripple is the umbrella term for the cryptocurrency platform, for which XRP serves as the transactional protocol.
Similar to other cryptocurrencies, Ripple is based on the concept of a distributed ledger network, in which several parties, as opposed to a single, centralized authority, must take part in transaction validation.
This makes international transactions possible and has far lower transfer fees than cryptocurrency like bitcoin. XRP transactions are practically instantaneous, unlike other cryptocurrencies, as they don’t require a standard confirmation period. Originally conceived by a single firm, Ripple Labs, Ripple remains supported by this organization instead than the broader developer community that keeps up the development of bitcoin.
Additionally, there is no variable quantity of its money in circulation. Ripple was founded with all 100 billion XRP coins right out of the gate, in contrast to Ethereum, which has no limit and a constantly expanding pool with an ultimate maximum.
The majority of the tokens—roughly 60 billion at the most recent count—are owned and retained by Ripple Labs and are maintained without the need for mining. Ripple Labs is presently holding almost $20 billion worth of XRP, even at the recently dropped price of about half a dollar per coin (remember, Ripple’s pricing plummeted dramatically recently, and by the time you read this, it may be valued significantly less than $60 billion).
It has 55 billion XRP in an escrow account that it may sell for up to a billion every month if it wants to, using the proceeds to finance acquisitions and other initiatives.
Ripple Labs has no intentions to sell such a large quantity of bitcoin anytime soon since doing so would probably have a significant negative impact on its value. In reality, Ripple Labs hopes to use XRP’s technology to enable quicker international financial transactions.
Ripple is nearly the exact opposite of Bitcoin and other cryptocurrencies, which are based on the notion of isolating financial transactions from the financial institutions of conventional currencies. This page displays the price of XRP by Ripple along with other statistics and market capitalization.
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