Below is an in-depth analysis (more than 2

In-depth analysis of XRP - The ‘payment protocol’ coin of Ripple Labs

XRP is the native token of the RippleNet digital payment system, developed by Ripple Labs. Unlike Bitcoin or Ethereum, which use Proof-of-Work or Proof-of-Stake mechanisms, XRP operates on the proprietary Consensus Protocol (Ripple Protocol Consensus Algorithm - RPCA). This allows transactions to be processed extremely quickly (in just 3-5 seconds) at almost no cost.

The main goal of Ripple and XRP is to replace traditional money transfer systems like SWIFT, which are deemed slow, costly, and lacking transparency. With a network of hundreds of partners including banks and global financial institutions, Ripple has made XRP a bridge liquidity tool between different currencies.

However, XRP is not without risks. The lawsuit with the SEC (U.S. Securities and Exchange Commission) that lasted from late 2020 to mid-2023 negatively impacted the price and reputation of XRP. Although Ripple achieved a significant legal victory (the SEC could not prove that XRP is a security when sold to individual investors), the lawsuit still left a notable legal mark.

Advantages of XRP:

Fast transaction speed (~3 seconds)

Extremely low fees

High scalability (1,500 TPS)

Practical applications in the traditional financial system

Disadvantages:

High centralization (most XRP is held by Ripple Labs)

Legal risks (although reduced)

Intense competition from new solutions like Stellar, USDC, and CBDC

#Write2Earn $XRP