If the Bitcoin is a world in itself, with a community of users and media attention on him, the altcoins are an ecosystem even more. Understanding all those cryptocurrencies different to Bitcoin, the altcoin carry out different and important roles in our society. And it is for this reason that we take the review of the day today to one of the main altcoins: XRP.
Contents
Basic Data
Name: XRP
Abbreviation: XRP
Year of release: 2012
Circulating volume: 43.121.735.112 XRP
Price today: us $ 0.25
Market capitalization: 10.892.263.561 dollars (3rd place)
Source: One currency business
Within the series of reviews of cryptocurrencies made by CriptoTendencia, the XRP represents the third type of criptoactivo in the market. And is that, unlike Bitcoin or Ethereum, the goal of XRP is purely business. While the first two cryptocurrencies on the market were created by a anonymous user and a foundation, the XRP was released by a company. Ripple is one of the main companies dedicated to the development of products using technology Blockchain in the world. Therefore, to speak of XRP is to talk about Ripple, can’t be understood the criptomoneda without the company behind it. Since, unlike the cryptocurrencies normal, the XRP is under a significant degree of control on the part of their creative enterprise. To do this, they use a system of validation of transaction different from the others. In the case of Bitcoin, for example, any person can install a node fully functional. Meanwhile, in the XRP, new nodes in the system must be authorized by the above, that is to say by the nodes of Ripple. In practice, this means that decisions on the Blockchain of XRP are taken by the company. This is normal considering the reason behind the creation of the XRP: to be an instrument of the firm to offer financial services.
The role of XRP
To understand the role of the XRP we must begin by explaining the problem that this criptomoneda tries to resolve: The execution of international transactions. Until today, this has been a tremendously complicated process to the international financial system. To make a shipment of money across borders, requires the intervention of several intermediaries. Not only are banks involved, but also brokers, technological, and other actors, each one collecting commissions and therefore increasing the cost of the operation. This determines that the realization of cross-border payments, until now, was an activity restricted to only individuals with a high purchasing power. Because they alone had access to the banking institutions and the ability of paying the large commissions charged. XRP change this situation, serving as a coin bridge to the direct sending of money between countries. In this way, if a bank wants to transfer money across borders, no longer requires the intervention of multiple actors. This has as a direct consequence, the decrease in the commission that is paid by these operations. In addition, it is achieved to shorten the waiting time for the execution of the transaction. While a cross-border transfer to normal can take several days, with XRP being made effective in less than 5 seconds.
What have you achieved until now?
Currently, we consider with reason to Ripple as one of the largest, but the largest, a financial company based in technology Blockchain. And that is, the firm has managed to begin to rub shoulders with the giants of traditional at the global level. Thus, we can see how the company closes strategic alliances with companies such as Santander Bank and MoneyGram. What has earned him international recognition as a financial company serious, with a product they can trust such as XRP. Thanks to this, these signatures are associated to Ripple, have managed to reduce dramatically their costs and waiting times. At the same time that they opened ways for the development of Ripple within the crypto world and its ecosystem. Such has been the success of Ripple, which in these moments is ahead of an aggressive expansion strategy. So, using your arm investments, Xpring, has begun to buy other tech firms. All of which is a sample of the good time through which passes the company and its criptomoneda.
Challenges
The way Ripple has not been all honey on flakes. And that is, if there is something beautiful within the world of cryptocurrencies, is the opening that exists at the level of technologies. That is to say, what he did Ripple can do it either. And in fact, others are doing it. R3, the core competence of Ripple at the time of the offering of financial solutions based in technology, Blockchain, also passing a good time. This is thanks to Corda, its currency equivalent to XRP, and that has managed to make an impression on the market. Thus, we see as R3 to sign agreement with major international companies such as Mastercard. All this while the network of R3 to companies, Marco Polo, will be adding increasingly more partners to its ecosystem, strengthening the capacity of the firm. Therefore, Ripple has enough competition within your niche as to not relax. Which, at the end of the day, it ends up being positive for the users in general. Therefore at the time that Ripple and XRP are motivated to R3 to be better, R3 motivates them to turn to Ripple.
Main Wallets
Because, unlike Bitcoin and Ethereum, the main goal of the XRP are the companies, there is a great variety of wallets that support it. Therefore it is very specific wallets virtual that work with the XRP. Among these wallets, the most important without doubt is Ledger. This wallet specializes in the management of the criptomoneda of Ripple. Although, of course, XRP does not cease to be available in other major wallets like Coinbase.
Conclusions
Within the crypto world XRP represents a particular case. The currency of Ripple is constantly attacked due to its character as more centralized than that of the rest of cryptocurrencies. What is considered contrary to the basic principles of the technology Blockchain. However, this system has worked for Ripple, a company that has prospered and established alliances with world-class from its foundation. A situation that has earned it a place next to the heavyweights in the international financial system. Therefore, despite what you may think certain groups, what is certain is that the XRP has achieved its objectives so far. And their collaboration in the financial revolution is in progress, and the democratization of international transactions, is no small thing. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.