The XRP cryptocurrency has been in the top three for several years. Digital fans know there is no coincidence and the coin has greater potential in comparison with others on the market. In order to clarify what distinguishes XRP from Father Bitcoin and other tokens, let’s have a deeper look into the quick of the matter.
XRP and Ripple – what are these?
The two definitions might puzzle an entry-level user at the first view. Nevertheless, one needs to point out that the issue is about the platform and cryptocurrency. Technically the name of the company and the platform for payment systems is Ripple while XRP is a virtual currency that exists only in the Ripple system. However, they often refer to Ripple when actually XRP is meant. Well, pick a word, any word, this is a virtual invention that is worth learning.
Peculiarities of XRP mining
The only persons who are able to generate XRP are its creators that is why there is even some shadow of absurdity using the expression ‘XRP mining’. The Ripple system does not use classic blockchain in its functioning. Thus, obtaining of these crypto coins is possible by following a different algorithm than Bitcoin mining. In general, there are only two ways for the so-called ‘XRP mining’: conducting exchange operations and opening a wallet at reliable miner’s website. Being applicable for numerous cryptocurrencies, faucet-platforms enable users to get some little mount of XRP coins at no cost as well, but certainly one can’t consider them for getting a fortune.
The main distinction from others
XRP has only two cryptocurrencies ahead to compare and one can courageously argue if it deserves the third place or not. As opposed to Bitcoin Ripple works as an exchange platform and a system of foreign currency payments. In addition, it represents a system of conducting RTGS (real-time gross settlement). The last one allows transfering money or securities from one bank to another on a ‘real time’ and on a ‘gross’ basis. They are usually used for high-value transactions and many major banks use the XRP payment system.
The main difference from cryptocurrencies XRP and Bitcoin is that the first one is not based on the blockchain, and its feature is the orientation to the consensus in the network; the goal of consensus is to write the valid transactions to the ledger. Then Ripple is decentralized, it has ‘a chef’, i.e. a private company that owns the service and operates it, while Bitcoin is a truly public system.
Historical XRP fluctuations
Analyzing XRP rates during the period of its existence one determines several rises and falls, which are so prevalent in the history of cryptocurrencies. After the initial listing on the exchanges, one could observe the first huge pump just after half a year. Having on the background the news about the conclusion of partnership agreements with several large banks, the XRP price increased more than 10 times, that is from 0.5 cents at the very start of sales to 6 cents by the end of 2014.
The second shift took place in 2017 when XRP experienced growth from 3 cents to 42 cents. Speaking about the last great jump one should mention the beginning of 2018; XRP fans saw the price increase from 23 cents to its new record 3,6$. It’s easy to conclude that crypto enthusiasts shall come on the next XRP rise sooner or later.
Building a new model of financial transactions
The predictions of XRP’s future are mostly perspective and of great promise. The number of XRP users is constantly increasing. The main goal of the Ripple company is to supply the global financial transfers and sixty institutions have already been using the system successfully.
In the nearest future Ripple will provide keen and tough competition to its rivals. Ripple fans are certain that it offers the greatest alternative to Swift though the Ripples whales say they are not replacing Swift and users should take advantage of both. One shouldn’t doubt that Ripple and XRP will survive in the future battles of traditional financial and crypto worlds.