Ripple (XRP): A Quick Overview
Ripple is a blockchain-based digital payment protocol designed for fast, low-cost international money transfers. It uses its native cryptocurrency, XRP, to facilitate cross-border transactions and improve liquidity. Unlike Bitcoin, Ripple is not mined; instead, 100 billion XRP were pre-mined, with a portion held by Ripple Labs.
Key Features of Ripple & XRP:
✅ Fast Transactions – Settles payments in 3-5 seconds.
✅ Low Fees – Transaction costs are a fraction of a cent.
✅ Scalability – Can handle 1,500+ transactions per second (TPS).
✅ Bank Partnerships – Used by financial institutions like Santander & SBI Holdings.
✅ Decentralized Ledger – Uses the XRP Ledger (XRPL) for consensus instead of Proof of Work.
Use Cases:
Cross-Border Payments: Reduces costs and speeds up international money transfers.
Liquidity Solutions: Banks and remittance services use XRP for instant settlement.
CBDC Development: Ripple works with governments to create Central Bank Digital Currencies (CBDCs).
Legal & Market Status:
Ripple has faced a legal battle with the U.S. SEC over whether XRP is a security. Despite this, it remains one of the top cryptocurrencies by market cap.