What is Ripple (XRP)?
As one of the most famous cryptocurrencies, XRP, which was created in 2012.
In 2001, it received the attention of numerous investors and speculators who
believe in the return of this cryptocurrency to the price peak from a few years ago
year. XRP coin is the main link of Ripple’s network, which tries to
become a leader for cross-border transactions, and their main advantages are
cheaper and safer transfer of money compared to traditional
methods involving banks. This is possible due to the use of
blockchain technology that allows the transfer of money between
two entities without the need for a third party such as banks.
We will consider the progress that Ripple is making with its many
partnerships, but also how they deal with a lawsuit filed by the SEC before
more than two years, and what the final result of this trial could
for the price of XRP. Ripple’s doing great in combat, and the SEC
he was unable to find the big mistakes made by the team, and they don’t have
the real reason for declaring XRP unregistered security, which
would remove it from the U.S. cryptocurrency market forever.
*Security – unregistered sale of assets (stocks, bonds, cryptocurrencies…). In the U.S., before selling this type of asset, it is necessary to register it with the SEC (Securities and Exchange Commission). Ripple didn’t do this before selling XRP, but at the time there was no clearly specified regulation for selling cryptocurrencies.
Source: Cointelegraph
How does Ripple work?
Ripple is working on a decentralized, open-source platform
source). All transactions are made between two entities without an intermediary.
(peer-to-peer) which allows seamless transfer of money to any
what form, whether it is dollars, yen, euros or some
other traditional currency, or it is a cryptocurrency such as
Bitcoin, Ethereum, Litecoin… Ripple in its global payments network
it has large clients such as banks (Bank of America, SBI Holdings,
Royal Bank of Canada) and financial services institutions. Ripple’s
Coin XRP is used to facilitate and speed up conversionbetween
different currencies.
Source: Cointelegraph
Who are the founders of Ripple?
Ripple as a project was created back in 2004. years, but he had nothing.
common with today’s cryptocurrencies. The real history of Ripple
starts in 2013. the year when the programmer Jed McCaleb, the creator of
eDonkey network, collected a number of large investors who helped him
The founder of Ripple Labs. Ripple Labs co-founded with Chris
Larsen, who was a business executive and one of the richest men in the world.
the world of cryptocurrencies. McCaleb, on the other hand, is an entrepreneur and a well-known
a programmer who has helped found numerous other projects such as
Stellar and at that time the largest cryptocurrency exchange Mt. Gox.
Source: Cointelegraph
Special feature of XRP
XRP was initially designed to conduct everyday transactions with
Since it offers much less transaction fees in
compared to all cryptocurrencies. Today, however, the situation
somewhat different, XRP is rarely used in everyday transactions,
And developers are gradually focusing on institutional application
XRP. The true uniqueness of the XRP lies in its ability to replace
any currency or valuable (such as gold) with a minimum
Commission.
Source: Cointelegraph
Ripple problem
The biggest problem associated with Ripple’s XRP coin is the impossibility
Buying this coin in the U.S. We all know it’s a world.
financial and investment center, and that if you want to attract
institutional investors, it is best to look for them in the U.S. But because of not so
long-standing events with U.S. regulators, primarily
With the SEC, Ripple’s XRP coin is impossible to buy and sell on any
exchange offices in the U.S. The SEC and Ripple suit has been going on for more than two years.
In 2001, investors are constantly awaiting the result of this trial.
If Ripple were to win, this would bring xrp coin back to us.
the use of the U.S. investment, which would be
led to a rise in price. Recent news related to the lawsuit allege
this is a very likely outcome given that the SEC does not have
enough evidence to charge Ripple. On the other hand, if
Ripple has been selling unregistered securities.
$1.3 billion worth of paper, we can forget the return
these cryptocurrencies on U.S. exchanges, and thus the future of this
the project, given that most of the operations associated with Ripple-
He’s doing it in the U.S.
Source: Cointelegraph
Similarities and differences between Bitcoin and XRP
The vision of Bitcoin and XRP is similar given that both projects target
cheapen, simplify and secure money transfers globally
Level. A compromise that Ripple’s founders decided to make in order to
additionally cheaper sending money to Ripple network is removal
Blockchain technology. Instead of using blockchain, Ripple is
simple centralized and all transaction history is saved no
a centralized book of transactions (eng. Ledger), while the code
Bitcoin ledger distributed worldwide which guarantees maximum
transparency and security. Another big difference is the initial
a coin at the time of the creation of these projects. Bitcoin is launched
with zero coins in circulation, and is also the creator of Bitcoin, Satoshi Nakamoto,
he had to mine, that is, consume energy, in order to earn Bitcoins. With
the other side of xrp there was a so-called pre-mine, through which
XRP creators received coins before they were traded on
the free market. Eighty percent of XRP’s offer was awarded
Ripple, while the remaining twenty percent was handed over to co-founders and
the main team. This is also the biggest problem of XRP, which is why
The SEC and launched a lawsuit against the project.
Source: Cointelegraph
Conclusion
Despite numerous controversies, XRP remains one of the largest crypto
currency by market capitalization, and is attractive to all investors
who believe in the modernization of traditional banking and financial
the service, but they are not too enthusiastic about the decentralization they offer
other cryptocurrencies. It can be used just like any other cryptocurrency.
to invest, but the peculiarity of this cryptocurrency lies in a very low
transaction fees which makes it great for sending smaller
the amount of money. If you decide to invest or buy this one temporarily
cryptocurrency be sure it’s the best place to do it
directly on our cryptomates. Who do you think will come out as
the winner of the trial between Ripple and the SEC, share your opinion
with us on our social networks (Twitter, Instagram).