$XRP also known as Ripple, is the native cryptocurrency of the XRP Ledger, an open-source blockchain created in 2012 with a focus on fast and low-cost payments. Unlike other cryptocurrencies like Bitcoin, XRP does not use a proof-of-work mechanism to validate transactions. Instead, it relies on a unique consensus protocol that allows transactions to be settled in just 3 to 5 seconds.
The main utility of XRP lies in facilitating global value transfers efficiently and economically. Its design makes it an attractive tool for financial institutions looking to optimize their cross-border payment processes, offering a faster and cheaper alternative to traditional systems like SWIFT.
With a significant market capitalization, XRP positions itself as one of the leading cryptocurrencies. Its ability to process a high volume of transactions at a low cost has driven its adoption in various use cases, including micropayments and as a bridge between different fiat and digital currencies. The XRP Ledger also incorporates a decentralized exchange (DEX) and functionalities for asset tokenization.