What happened to the XRP, Ripple?
What happened to Ripple (XRP)? Table of Contents
What is Ripple?
Ripple is a blockchain technology company founded in San Francisco in 2012.
It was launched by Chris Larsen, a proven serial entrepreneur in the fintech field, and David Schwartz, an expert in the field of cryptography.
At that time, in the midst of the so-called “Bitcoin 2.0” boom, new projects derived from Bitcoin and projects to develop distributed ledger technology with a completely different approach were emerging, especially in San Francisco.
Ripple’s founding team set out to develop an international money transfer network (RippleNet) for financial institutions with the vision of “realizing the Internet of Value”, and now it has adopted RippleNet in more than 300 financial institutions worldwide.
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What is Ripple’s vision?
Ripple’s vision is “realizing the Internet of Value.”
The term “value” here applies not only to money and currency but also to any asset that has value.
The goal is to dramatically improve the efficiency of “value exchange” by utilizing blockchain technology, just as the Internet has dramatically improved the efficiency of information exchange.
This is a very grand vision, but as a starting point, they are focusing on the issue of international remittances by financial institutions.
That’s because international money transfers are a particularly frictional area.
Currently, on average international remittance costs ar as much as 7%, and in some developing countries, it is more than 20%.
From the perspective of financial inclusion, remittance costs need to be significantly reduced.
While international remittance solutions are Ripple’s core business, they also support projects that utilize XRP and interleisure protocols outside of international remittances, as well as ecosystem support such as providing development tools for developers.
This project is called “Ripple X”.
From the perspective of supporting the ecosystem, Ripple are also actively supporting blockchain research at universities, and in Japan they are supporting research at the Faculty of Economics at the University of Tokyo and the Kyoto University General Survival Academy.
How is Ripple different from his XRP?
As mentioned above, Ripple is a company that provides enterprise solutions for financial institutions to solve the problem of international money transfers.
Among its solutions, it leverages the crypto asset XRP as a bridge asset to provide on-demand liquidity (ODL).
XRP is a crypto asset native to the public blockchain called XRP Ledger.
Like Bitcoin, it is an independent crypto asset that can be used as a permissionless blockchain.
Ripple has been actively involved in the open-source development of XRP Ledger since its inception, and it has also worked to support the ecosystem to make XRP Ledger available to a wide range of users.
It’s true that Ripple has a lot of XRP, but 90% of them is locked up in escrow and is supposed to have access to only a fixed amount of XRP each month.
Some of the released XRP will be used for activities such as supporting the XRP Ledger ecosystem and developing partnerships, and the remaining its XRP will be returned to escrow again.
What is the difference between Bitcoin and XRP?
Bitcoin and XRP have in common that they are public and permissionless, but they have different transaction approval mechanisms and approaches.
Whereas Bitcoin approves transactions based on Proof of Work, XRP uses a unique Consensus algorithm to allow Varidata, which exists all over the world, to vote by majority vote and approve transactions.
XRP is very fast to settle (payment every 3-4 seconds), has very low fees, and is scalable (1,500 per second), making it very suitable for payment and remittance applications.
What happened to XRP (Ripple) in 2020 – 2021?
Development of XRP Ledger began in 2011 and launched in 2012.
Since then, ledger has been settled every 3 to 4 seconds, and more than 58 million leisures have been settled successfully so far, making it a very stable and distributed network.
XRP Ledger is an open-source project with continuous feature and performance improvements.
With the recent release of XRP Ledger v1.6, this new version provides a more robust consensus mechanism and provides key insights into the state of the network.
Recently, Coinbase, the largest cryptocurrency exchange in the United States, announced that it will suspend trading of Ripple (XRP) after the US Securities and Exchange Commission (SEC) sued Ripple and its executives.
Coinbase has already restricted trading and will stop trading the crypto assets entirely at 1:00 pm EST on January 19, 2021.
Coinbase listed Ripple on its platform for retail investors in February 2019.
The SEC filed this month alleging that crypto-assets Ripple is a security breach and that Ripple has sold Ripple unregistered for nearly seven years, raising about $ 1.3 billion.
Ripple has shown a willingness to fight in court, and the decision could take years.
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