An Analytical Perspective on XRP: Between Technical Structure and Regulatory Challenges
XRP, the cryptocurrency associated with Ripple Labs, features a different technical structure from most cryptocurrencies, as it does not rely on a Proof of Work (PoW) mechanism but utilizes a unique consensus protocol (Ripple Protocol Consensus Algorithm - RPCA), granting it transaction speeds (3 to 5 seconds) and near-zero costs.
Main Usage:
Ripple aims to facilitate international financial transfers between banks and financial institutions instantaneously and at a low cost, making XRP akin to a liquidity bridge between currencies.
Key Features:
High execution speed (over 1500 transactions per second)
Very low energy consumption
Strong institutional support (partnerships with over 300 global financial institutions)
Challenges:
Legal dispute with the U.S. SEC, which affects liquidity and trust
Decline in institutional adoption after the temporary suspension of some partnerships pending a final legal settlement
Future Vision:
If the legal aspects are successfully resolved, XRP could regain its position as a leading solution in cross-border transfers, especially in light of the global shift towards more efficient solutions than the traditional SWIFT system.
Current XRP Price: $2.40
Market Cap: ~130 billion dollars
Daily Change: -3.6%
