Seth has been investing in cryptocurrency for 3 years and is currently in the process of passing his series 65 to become a financial adviso
XRP is a digital asset built for payments. It is the native digital asset on the XRP Ledger—an open-source, permissionless and decentralized blockchain technology that can settle transactions in 3-5 seconds.
In 2011, three engineers—David Schwartz, Jed McCaleb and Arthur Britto—began developing the XRP Ledger.
Fascinated by Bitcoin, they set out to create a better version that improved upon its limitations—with the goal of creating a digital asset that was more sustainable and built specifically for payments.
The XRP Ledger first launched in June 2012. Shortly thereafter, they were joined by Chris Larsen and the group started the Company OpenCoin in September 2012 (now named Ripple).
The founders of the XRP Ledger gifted 80 billion XRP to the company. Ripple has since sold some of its XRP and put the rest in escrow.
Why it is superior:
It is the best way to move money around the world; the fuel for our growing digital economy.
-Fast- settles in 3-5 seconds
-Scalable- XRP ledger can process 1,500 transactions a second
-Low cost- XRP transactions cost a fraction of a penny ($0.0002)—much less than other cryptocurrencies and average fiat payments.
-Sustainable- XRP transactions settle without the enormous and unsustainable energy costs associated with proof-of-work (or mining).
XRP settles in 3-5 seconds into any fiat currency across the world. It uses XRP Ledger protocol consensus to validate transactions on the blockchain.
XRP can be sent directly without needing a central intermediary, making it a convenient instrument in bridging two different currencies quickly and efficiently. It is freely exchanged on the open market and used in the real world for enabling cross-border payments and microtransactions.
Unlike Bitcoin, there is a finite amount of XRP. All XRP is already in existence today—100 billion in total.
Consensus and governance:
The XRP Ledger uses a consensus protocol, in which validators come to an agreement on the order of XRP transactions every 3-5 seconds. This agreement serves as the final and irreversible settlement.
Transactions are executed in a deterministic order to prevent double spending and malicious activity. Unlike other blockchains, transaction fees are destroyed as part of transaction execution. The XRP Ledger adjusts fees in near real time to respond to network conditions, with the twin goals of maximizing transaction throughput while keeping transaction fees as low as possible.
All servers in the network process each transaction according to the same rules, and any transaction that follows the protocol is confirmed as soon as validators reach a quorum.
• Asset Custody
• Payment Processing
• On-Demand Liquidity
There is no other digital asset out there that offers anything close to what Ripple and XRP offer. It is truly decentralized, open source, and has unlimited potential. I've researched business partnerships and the board of directors and it is truly astounding what has been accomplished since its inception. This is by far my favorite crypto. Currently Ripple is fighting a SEC lawsuit for selling XRP. The SEC believes Ripple sold unregistered securities (XRP). Many believe XRP is in fact, a currency. In fact the United States (SEC) is the only country in the world that believes XRP is a unregistered security. And in 2015 the U.S. FINCEN actually stated XRP was a virtual currency. I fully believe the case will either settle or Ripple will outright win this lawsuit. Once there is clarity and a decision on the case you will see XRP price explode.
This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.
Seth Michael (author) from Virginia on May 08, 2021: