Another major project that has brought tremendous attention in the field of blockchain is Ripple, a peer-to-peer cryptocurrency with the goal of providing a quick and secure way to make online transfers.
While it is common for almost all cryptocurrencies to use the abbreviation of the name (Bitcoin – BTC, Ethereum – ETH, Litecoin – LTC), XRP is the only way to call the coin of the Ripple project, which consists of several components: Internet protocol, consensus ledger, and the currency XRP.
In today’s SpectroCoin blog post, we will briefly overview the evolution of the Ripple project and its currency XRP, and discuss where this cryptocurrency stands now.
What was Ripple (XRP) back then?
The story of Ripple started way before the project was launched. In 2005, Ryan Fugger, a programmer from Canada, introduced RipplePay – a payment system based on a peer-to-peer financial network. Initially, the project did not implement blockchain technology and therefore did not gain much attention.
In 2011, Fugger was addressed by Jed McCaleb and Chris Larsen, who proposed to switch RipplePay to a digital currency system where community members could verify transactions with their consensus. Fugger sold the project, and the company was named OpenCoin.
A year later, Ripple Transaction Protocol was introduced, designed to support fast direct peer-to-peer transactions in fiat currencies with reduced transaction costs and waiting times. In addition, the XRP token was launched to enhance liquidity.
The initial price of the XRP token was $0.005. It reached its all-time high during the cryptocurrency boom in December 2017 – the price of one XRP surpassed $3 at the time.
In 2013, OpenCoin was renamed to Ripple Labs. Along with the name change, the code of Ripple was made open-source. Two years later, the company received its current name – Ripple.
Until 2014, the Ripple system caught the attention of banks that saw the project as a perfect alternative for payment settlements. Within three more years, many institutions signed partnerships with Ripple and totalled to over 100 customers.
What is Ripple (XRP) today?
Today, XRP is well-known for its strong adoption among financial institutions. To date, over 100 companies, including American Express and MoneyGram, have acquired Ripple software intending to ensure fast and smooth transfers.
Unlike most cryptocurrencies, it is not possible to mine Ripple (XRP). Instead, the currency only exists in its own system. At the beginning of the Ripple project, 100 billion XRP were issued, which is the maximum number of coins that can be present.
While XRP cannot be mined, transactions are confirmed with a consensus of the network participants called XRP Ledger (XRPL). In contrast to the proof-of-work mechanism, XRP transactions are validated by servers on an internal ledger that guarantee consensus on the transfers.
Around 45 billion XRP are already on the market, and it is among the top 10 cryptocurrencies by market capitalization (7th place at the moment of writing). For a long time yet, the price of XRP remains less than one US dollar, usually not surpassing $0.5.
While Ripple mainly focuses on payment processing and currency exchange, the XRP currency often comes second in the project mission. In this way, it does not compete with BTC or ETH but seeks to develop as a cross-border payment system instead.
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