The XRP cryptocurrency is a decentralized digital currency launched in 2021. It is used to send and receive payments in the financial world. Each XRP transaction requires a unique destination code that is generated by a decentralized XRP wallet. These wallets generate a private and public key that acts like a password. Without this information, unauthorized users would be able to access all cryptocurrency stored within the wallet.
XRP Ledger is a decentralized network of peer-to-peer servers that enables fast settlement of transactions. The system also supports the tokenization of CBDCs, a form of currency used by central banks to interoperate with other payment systems. As an added benefit, the XRP Ledger is extremely energy-efficient, consuming as little as 0.0079 kWh per transaction.
What Makes XRPL Unique?
XRP is a cryptocurrency that was launched in 2012 and is one of the largest in the world. It was created with the aim of facilitating fast cross-border payments. XRP is used by a technology company based in the US, Ripple, which creates solutions that will change the way financial transactions are processed worldwide. The company employs about 300 people and aims to build a global settlement network to facilitate faster transactions between financial institutions.
Alongside its native coin, XRP, the XRP Ledger is used by developers to create solutions that solve inefficiencies, including remittance and asset tokenization. Currently, the five main applications of the XRP Ledger are payments, tokenization, DeFi, CBDCs and stablecoins.
RXP on Coinmarketcap >
Unique Nodes in XRP are third parties who help verify transactions in the XRP system. Ripple decides who is eligible to be on the Unique Nodes List. They use a voice system to verify that the transaction history stored across all servers is accurate. Ripple controls six of these nodes, but the majority of them are owned by banks.
Ripple’s xRapid product
Ripple is a company that facilitates cross-border payments. Its xRapid product settles payments in under two minutes compared to the two to three days it takes traditional methods. The company claims that its xRapid product enables users to save 40 to 70% on average.
Ripple’s conflict with the SEC
Ripple is in a tussle with the SEC over its unregistered digital asset securities offering. The SEC alleges that Ripple and its co-founders sold XRP without being registered, raising $1.3 billion from investors. The company reportedly did not disclose the sale, which led to investors losing $600 million.
XRP is listed on many CeFi exchanges globally, including Binance, Huobi, FTX and Bitstamp.
There are several ways to buy XRP. You can buy it on the spot market or a peer-to-peer exchange. When purchasing on the spot market, you need to select the XRP crypto pair against the currency you intend to deposit and place a limit order. When the market price reaches the limit order price, you can complete the transaction and see XRP on your balance. If you are looking for a more direct way to purchase XRP, P2P exchanges allow you to advertise XRP for sale. These sites usually require no account and are the fastest method.