Cryptocurrencies explained: What is XRP?

Cryptocurrencies explained: What is XRP?

XRP is an innovation in cross-border payments. The cryptocurrency takes a multiple-day process and shrinks it down to seconds. This transformation is a real-world example of blockchain technology improving existing financial services. Institutions such as Westpac and NAB have trialled XRP for cross-border payments.

What is XRP?

Ripple Labs created XRP in 2012. It transforms cross-border payments from a centralised to a decentralised model.

XRP runs on a decentralised blockchain network. A decentralised network is numerous connected computers that process transactions. Whereas a centralised network, like a bank, channels transactions through a single central computer system.

XRP is the third largest cryptocurrency by market capitalisation. It is currently valued at over $17 billion. You can buy, sell or trade XRP on cryptocurrency exchanges like BTC Markets.

What are the benefits of XRP?

Transaction speed and low fees are XRP’s party piece. On average, it takes four seconds to process an XRP transaction.

These features make the cryptocurrency an ideal asset for cross-border payments.

XRP tokens are limited to 100 billion, all of which have already been created. This is unlike other cryptocurrencies such as Bitcoin. As all XRP tokens exist, there are no set-up costs when transacting. This keeps XRP transaction fees low.

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Source: Cryptocurrencies explained: What is XRP? – Stockhead