The Ripple Effect: Examining XRP

The goal of Ripple and XRP

In a society where information can travel between individuals as fast as you can type or speak it, monetary transfers have struggled to keep up. Since the start of the ‘information age’ as some have termed this current point in time, institutions have tried to find a way to speed up cross-border transactions to keep pace. The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, was founded in 1973 for this exact purpose. However, it is still reliant on third parties for transaction settlement.

Ripple and their native currency XRP, was created to solve a number of problems in both the traditional finance sector as well as in cryptocurrency itself. The team at Ripple saw what they described as the ‘waste inherent in mining’ when it came to Bitcoin and set a goal to create a more sustainable system. In this article we will cover the history of Ripple, XRP’s evolution over time, and explore why this coin has become so newsworthy in recent times.

Ripple as a Company

Ripple is a rather distinct company in the crypto space, and XRP news stories have been a constant since its launch in 2012. Unlike other cryptocurrencies and Web3 companies, the Ripple network is owned by a single company and is not run as a decentralised ecosystem. Instead, Ripple aims to be a middle man or sorts, facilitating trade between units of value. Ripple's main goal is to create a network that allows as many simultaneous transactions as possible, as fast as possible. Allowing established financial institutions such as SWIFT or any large international bank to go from cryptocurrency to FIAT with as little delay as possible. In a sense, this makes Ripples less of a competitor with other cryptocurrencies and more comparable to established financial institutions.

This focus on traditional financial methods is not the only point of difference between XRP and other cryptocurrencies. From the start, Ripple was not aiming to design a normal cryptocurrency. For starters, Ripple has no mining or miners to speak of. Instead of a decentrlaised trustless blockchain, transactions run through a centralised network of validating servers, which attempts to compare the information received with a common ledger. This consensus algorithm validates these connections instead of relying on miners. As a result it is extremely fast and secure, and is capable of handling approximately 1,500 transactions per second. This network is called the XRP Ledger.

XRP Market Position

XRP, like all cryptocurrencies, is influenced by a variety of factors. These might encompass market attitude, adoption, competition, and XRP news. For example, at the time of writing, XRP is embroiled in a legal battle with the United States Securities and Exchange Commision, or SEC. Positive rumour and speculation may also have an impact. This is why it is vital to keep informed and up to date. Another major aspect influencing XRP's development is the widespread acceptance and use of the Ripple network and the XRP Ledger. The more individual users and institutions who join the network, the better it is for XRP as a whole. In addition to this XRP news, regulatory events, both positive and negative, can have an impact on the price of Ripple's native currency.

What's next?

Ripple, and by extension XRP, have experienced a number of ups and downs in the cryptocurrency market, and its future remains uncertain at the time of writing. Despite the ongoing legal dispute with the SEC, Ripple continues to develop and enhance its technology, and has established a number of fascinating partnerships and collaborations in order to expand XRP adoption.

It is essential for readers and investors to stay up to date with XRP news and developments, since these can have a big impact on its future. As a cryptocurrency exchange, we encourage our customers and readers to conduct their own research and keep up to date on all the newest developments and trends in the cryptocurrency industry.

If you're interested in XRP and want to join their growing community, CoinSpot strives to offer a reliable and secure platform for buying, selling, and trading XRP and other cryptocurrencies. If you have not done so already, sign up now to get started.