XRP has real use cases, especially in the financial industry. The main goal of XRP is to enable fast and cheap transactions, especially for international transfers. Here are some key use cases for XRP:
1. International transfers
XRP is used as a bridge currency for exchanges between different currencies. This significantly reduces transaction times (to a few seconds) and fees compared to traditional banking systems such as SWIFT.
2. RippleNet
XRP is part of the RippleNet payment network, which is used by banks and financial institutions to speed up transactions. For example, some banks use XRP for real-time liquidations.
3. Micropayments
Due to its low fees, XRP can be used for micropayments, such as paying for content or making online donations.
4. On-demand liquidity (ODL)
Ripple offers a product called On-Demand Liquidity (ODL), which uses XRP for real-time liquidation during foreign exchange transactions. This helps companies avoid holding funds in different currencies in correspondent accounts.
Why is XRP considered to have "no real use"?
Regulatory issues: Prolonged litigation (particularly with the SEC) raises doubts about the legal status of XRP.
Competition: There are other blockchains and payment systems that also offer fast and cheap transactions.
Limited use outside RippleNet: Most of the use of XRP is concentrated in Ripple products, giving the impression of limited application.
Despite this, XRP has its advantages, especially for fast and cheap transactions on a global scale.
