XRP is a cryptocurrency developed by Ripple Labs and aims to revolutionize global payment systems. Launched in 2012, XRP was designed specifically to enable fast and low-cost international money transfers between financial institutions and banks.
One of the key features of XRP is that it runs on a blockchain-based payment protocol called RippleNet. RippleNet is a network that aims to enable instant and secure transactions between banks and financial institutions. XRP is used as a bridge currency in this network, meaning it makes it easy to switch between different fiat currencies and provides liquidity.
An important difference of XRP from other cryptocurrencies is the speed of transactions. While transaction times for popular cryptocurrencies like Bitcoin and Ethereum can take minutes or hours, XRP transactions are usually completed within a few seconds. This speed provides a great advantage for banks and financial institutions.
The total supply of XRP, unlike many other cryptocurrencies, is predetermined and limited to 100 billion XRP. Ripple Labs controls a large portion of this supply and releases it to the market at regular intervals. This centralized structure has caused criticism among some cryptocurrency enthusiasts, as decentralization is one of the fundamental principles of cryptocurrencies.
Ripple and XRP have faced various regulatory challenges in recent years. Specifically, the United States Securities and Exchange Commission (SEC) filed a lawsuit claiming that Ripple was selling XRP as an unregistered security. This case caused fluctuations in the value of XRP and created uncertainty among investors.
