We saw in Ripple (XRP)

We saw in Ripple (XRP)

If there is a cryptocurrency that divides opinions, it sure is Ripple’s XRP. Ripple and its token are among the historical players in the crypto ecosystem and have one of the largest communities in the crypto world. Here is our full review!

What is Ripple and its XRP token?

when we mention ripple, we immediately think of its cryptocurrency, XRP. However, Ripple’s business, technology, and ecosystem is not necessarily synonymous with XRP. Ripple is taking advantage of the potential of XRP in its ecosystem, but it is not the only asset for the company.

XRP price against the dollar in daily time units shows a good recovery for XRP after months of decline in the digital asset market in June 2021
Bears price of XRP against the dollar in daily time unit (1D)

Technological advances have dramatically changed the speed at which information travels around the world. However, the circulation of capital remained boring.

Ripple Labs So she set herself the task of becoming Reference payment network for institutional players. For this, the company exploits XRP and a series of technologies that allow it to speed up the movement of funds while reducing costs.

The team behind Ripple Labs

Initially, Ripple, known as RipplePay, was a money transfer platform, launched in 2004 by Ryan Fogger. Fugger’s goal was to create an over-the-counter lending system and then develop it into a decentralized cash system.

After a few years, in 2011And Good Makalid He was working on developing a consensus system to achieve consensus without mining. I hired McLead Chris Larsen in a 2012 Both approached Fruger to combine their projects.

In September of the same year, the three friends founded OpenCoin, which will become Ripple Labs in 2013. Although Ripple’s early technologies, including Ledger XRP, were contemplated by McCaled, these are Arthur Britto And David Schwartz who built it

Objectives of Ripple Payment Protocol for Banks

Ripple’s goal is Cut costs, but alsomore International transaction speed. Currently, international bank transfers take approx 3 to 6 days There is a real lack of transparency about transaction fees and transfer status.

Ripple attitudes themselves as A very dangerous alternative to Swift, with many advantages. The solution is faster, safer and more flexible, while being less expensive. The network now has more than a hundred clients, including several highly influential banks (Santander, UBS, Crédit Agricole, American Express). Not It is not mandatory to have XRP to use the Ripple network. However, the use of the token helps reduce transaction costs further and is therefore encouraged.

Ripple products

Ripple operates 3 major products: RippleNet, XRP Ledger, and Ripple X.

Ripple net

Ripple net Is a global network that financial institutions can use to transfer money faster, using More transparency at lower cost. Ripple has previously had products x fastAnd xCurrent And Fifteenth. However, the company chose to combine them into one product in 2019: Ripple net.

RippleNet also offers a feature known as Liquidity on demand (ODL). This feature allows XRP to be used as a bridge between fiat currencies. If the party has euros and their partner wants to get dollars, the ODL system will convert automatically, through XRP.

RippleNet features that allow transactions, send secure messages and offer liquidity solutions.
RippleNet Features – Source: Ripple

XRP Ledger et Ripple X

XRP Ledger It open source blockchain on which the XRP token operates. However, the XRP Ledger and the XRP token operate independently of Ripple, although Ripple uses both in different solutions. However, the Security and Exchange Committee (SEC) questions this independence, but we’ll come back to this later.

List of XRP Ledger advantages that take advantage of the public and decentralized structure, in addition to the excellent performance offered at a low cost
List of XRP Ledger Benefits – Source Ripple

XRP Ledger is a first layer solution, just like Ethereum And Bitcoin. Therefore, Ripple’s partner financial institutions can build applications on it. XRP Ledger does not do Not on the working directory (PoW), as with the Bitcoin blockchain nor on proof of stake (POS). The XRP network does not produce blocks, but “recordings”. Each ledger contains information, such as the data that links it to the previous ledger on the chain, account totals, … The lack of mining and stacking means that all XRP is pre-selected. Therefore, the total supply of XRP has been quite central for many years. This has led some crypto enthusiasts to shy away from the project as being too centralized.

Finally, RippleX is a file Blockchain Applications Guide that Ripple partners can use to deploy solutions related to value transfer, Ripple’s DNA.

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Is XRP a security (financial security)? The Cryptosphere Epic

the working class 2018: Ripple vs. its Investors

Legal sage for Ripple and XRP starts in 2018. Ryan Coffee 10 anonymous retail investors accused Ripple of conducting a sale of unregistered securities. However, the case was fast The plaintiffs abandoned herwithout knowing the reason. After a few months, Vlad Zakinov Twenty-five investors have filed a second-degree lawsuit on the same grounds. Investors claim that Ripple tricked them into selling their XRP, as investors expected to make profits, but incurred losses.

As you can see below, XRP appreciated over 1,400% in one month between 2017 and 2018. Investors who bought XRP around the top felt wronged and started legal action. 3 years later, the second case is not not resolved yet, after a federal judge dismissed the case in 2020.

The price of XRP against the dollar between 2017 and 2018 shows an impressive development for XRP between 2017 and 2018. The price of XRP rose from $0.20 to $3.2 in a few weeks.
XRP price against the dollar between 2017 and 2018 in daily time (1D)

Ripple Against the Securities and Exchange Commission: The Cryptosphere Saga

the December 21, 2020The Securities and Exchange Commission (SEC) has launched a lawsuit against Ripple, as well as its CEO, Brad Garlinghouseand its founding partner, Chris Larsen. The Securities and Exchange Commission accused Ripple and its executives of carrying out a Selling unregistered securities Enter 2013 and 2020. Ripple has been accused of making a sale of $1.3 billion worth of XRP illegally.

Garlinghouse and Larsen . are charged $600 million in illegal salesPersonally. As we saw earlier, XRP was previously mined and distributed, so Larsen and Garlinghouse held large amounts of it and sold it over the course of several years. As a result of this complaint, the price of XRP collapsed by 40%, but that was just the start of trouble for Ripple.

Ago December 28And Queen Piece announced that it XRP will withdraw negotiating from Jan 19 2021. The asset was only listed on Coinbase in February 2019, after many months of lobbying by the Ripple community. immediately after that, bit stamp And Crypto.com The assets have also been emptied. finally, grayscale Closed access to its XRP investment products.

Since then, Ripple, Garlinghouse and Larsen Cross swords with SEC through a lawyer. The lawsuit was announced in December 2020, but the first phase of the lawsuit will not end until the fall of 2021. During the experience phase, Ripple and the SEC gathered evidence. Ripple, for example, has asked the Securities and Exchange Commission to disclose whether its employees are allowed to trade XRP. For its part, the Securities and Exchange Commission (SEC) has required Ripple to participate in all of its Slack communications.

Either way, this high-profile case could be particularly detrimental to Ripple if its outcome is negative.

Where to buy XRP?

For US citizens, it can be difficult to buy XRP. In fact, the majority of exchanges have not yet prepared for trading. However you can buy XRP at FTXAnd legendary sea monster or on Binance Public Site.

How to buy XRP on FTX
XRP Buying Interface on FTX – Source: FTX

XRP Pros and Cons

XRP Benefits

  • Ripple advances A highly effective solution to speed up interbank transactions, which can now be completed in 2-5 seconds.
  • ripple Allow Significantly reduce costs international transactions.
  • The Ripple network does not only process transactions in XRP. It could be Used for banknotes.
  • ripple used by financial institutions.

Disadvantages of XRP

  • ripple Strengthens the position of the banks, by providing them with effective blockchain technology in response to the decentralized cryptocurrency ecosystem.
  • Tokens are pre-mined. So there is no No possible reward mechanism For those who wish to participate in network security.
  • ripple somewhat central, since its founding and its leaders own large amounts of XRP.
  • code XRP Still Don’t use too much, despite the development of RippleNet.
  • the Ripple Labs Legal Bickering And its leaders can have a negative impact on the project and its symbol.

On a technological level, Ripple should be recognized for the quality of its architecture and its notorious efficiency. This is certainly an advantage for the banks, but also for all the multinational companies that conduct cross-border transactions every day, whose cash flow is currently a victim of slow transactions.

Ripple allows banks to take advantage of technology that they were initially intended to circumvent. Our opinion of Ripple ultimately depends on our convictions. Ripple is not the champion of decentralization, on the contrary. This makes it one of the most divisive projects in the cryptosphere. However, XRP has generated a frenzy that only a few projects can boast of. The token has managed to maintain its place in the top 10 digital assets. And Ripple is showing tremendous resilience, despite disagreements with the Securities and Exchange Commission.

Ripple hasn’t said its last word and will continue to make headlines in the crypto business for quite some time… What if you buy your first cryptocurrency and prepare for the future By registering on the KuCoin reference platform ? Save 10% on your trading fees by following our referral link!

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