Launched in 2012, XRP has one of the most ambitious goals in the cryptocurrency space. The system promises to migrate transactions away from closed databases controlled by banks to an open, more cost-effective infrastructure.
As a digital asset, XRP is an open-source and permissionless blockchain technology backed by the XRP Ledger.
From its inception, Ripple, the company behind XRP, designed it to be a replacement for SWIFT (a leading money transfer network) and while XRP is based on the ERC-20 token.
With its low cost, speed, scalability, and inherently green characteristics, XRP has become an extremely popular choice for distributed ledgers.
With XRPL’s native decentralized exchange (DEX), top stablecoins and DeFi tokens can also be traded directly on the XRP Ledger.
There are a variety of applications and use cases related to payments on the XRP Ledger, including micropayments, DeFi, and soon, NFTs as well.
Alongside its native coin, XRP, the XRP Ledger is used by developers to create solutions that solve inefficiencies, that includes; payments, tokenization, DeFi(Decentralized Finance), CBDCs(Central Bank Issued Digital Currencies), and stablecoins.
Ripple vs SEC
As of late 2020, Ripple Labs is locked in a legal battle with the Securities and Exchange Commission regarding the status of XRP as a security.
As part of the lawsuit against Ripple Labs and two of its executives, the commission alleges that they traded $1.3 billion in XRP as securities without registering them.
Despite this dire situation, Ripple managed to win most of the claims in the lawsuit, ensuring that it is now regarded as a bullish catalyst for other altcoins.
On Twitter, XRP Ripple has 2.5 million followers, making it one of the most popular cryptocurrencies on social media.
Ripple’s recent SEC lawsuit has pushed its social media presence even further. Their follower counts across social media platforms have been increasing steadily.
XRP’s Public nature
It is a decentralized, public blockchain. Changes affecting transaction processing or consensus must be approved by at least 80% of participants.
While XRP offers a decentralized cross-border payment network, it isn’t the only one on the market to do so. Some of its competitors include: Stellar(XLM), OmiseGO(OMG), and Ethereum(ETH).
Binance, Route 66 Ventures and SBI Group.