XRP, the cryptocurrency released by XRP Ledger and commonly known as Ripple, has gained incredible popularity over the past year, with many investors considering it to be one of the hottest cryptocurrencies on the market right now.
However, not everyone knows why that’s the case, so let’s take a moment to explore just why this digital asset has become so popular in recent months and why it should continue to be considered as one of the top cryptocurrencies going forward.
Here’s why XRP is one of the hottest cryptocurrencies right now
What Is XRP?
Ripple (XRP) is a cryptocurrency, built upon a distributed open source internet protocol, consensus ledger and native currency called XRP.
A cryptocurrency is an online medium of exchange, like normal currencies such as USD or EUR – but designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography.
Cryptography is used to secure and verify each transaction on its network. Moreover, it can be transferred easily across borders and relatively cheaply compared to traditional payment systems.
How Does It Work?
Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network by Ripple.
The network allows for seamless transfer of money (ripples) in any form, anywhere in the world instantly, reliably and for fractions of a penny without loss or theft.
This is done via cryptographically secure ledgers with no central authority or third party involved. Banks can use xCurrent to settle international payments in real time.
It’s faster than using SWIFT, which can take days to settle cross-border transactions due to its reliance on messaging rather than transaction processing technology.
xRapid uses XRP as an intermediary between currencies so that banks can save on foreign exchange costs when making global payments.
XRP Transactions in Action
For example, let’s say a business in Japan wants to send $10,000 to their office in New York. The money will travel through several banks and across state lines.
Typically, this would take between two and five days; however, with Ripple’s technology it only takes four seconds. Once the funds arrive in New York, they are instantly available for use.
This is an improvement over traditional bank transfers, which can take days to complete. It also provides real-time transparency into where your money is and what it’s being used for.
In addition, transactions made using XRP cost just a fraction of a cent-about one-thousandth of what other digital assets charge.
So if you want to play with cryptocurrencies, buy XRP.
The Cryptocurrency’s Unique Features
Unlike Bitcoin and other cryptos, which use proof-of-work mining to validate transactions, Ripple’s transactions are validated by trusted nodes.
These nodes are run by a group of users (known as validators) who have been selected to oversee transactions. The company plans to open up its network so that anyone can act as a validator.
This will make it possible for individuals or companies to participate in validation without having to invest in hardware or software-they just need enough XRP in their account to get started.
This feature also makes it possible for transactions on Ripple’s network to settle much faster than they do on other networks, where waiting times of 10 minutes or more aren’t uncommon.
How To Invest In XRP?
Unfortunately, it’s not easy to buy XRP-at least not yet.
The company recently announced that they’re looking into listings on more cryptocurrency exchanges in an effort to make their currency available to more investors.
In addition, Ripple has hinted that it may soon launch its own cryptocurrency exchange platform. But until then, you can still purchase XRP via Kraken or Gatehub.