What is XRP(Ripple) Cryptocurrency Payment Protocol Definition

What is XRP(Ripple) Definition

XRP or often referred to as Ripple is a crypto asset created by a company called Ripple from the United States. XRP’s main goal is to create a cheaper, transparent and secure real-time direct asset transfer system on the Ripple network.

Price 1 XRP

Reporting from the coinecko.com website, currently the price of 1 SOL is Rp. 8,819,00-,. If you are interested in buying XRP as one of the investment instruments that you want to have, you can buy it in various applications for buying and selling crypto services, such as Binance, Pintu and Indodax.

How Ripple Works

The Ripple network does not work with Proof of Work (PoW) systems like Bitcoin or Proof of Stake (PoS) systems like NXT. Instead, transactions rely on account balances in the system and a consensus protocol to verify transactions. Consensus helps improve system integrity by avoiding double-spending.

A Ripple user who initiates a transaction with multiple gateways but tries to send the same $100 to the gateway system will have all but the first transaction deleted. Individual distributed nodes decide by consensus which transaction was executed first. Confirmations are instant and take about five seconds. Since there is no central authority that decides who can create nodes and confirm transactions, the Ripple platform is described as decentralized.

Ripple keeps track of all IOUs in a given currency for a given user or gateway. IOU credits and transaction flows that occur between Ripple wallets are publicly available on the Ripple Consensus ledger. But even if the history of financial transactions is publicly recorded and available on the blockchain, the data is not tied to the identity or account of any individual or company. However, the public record of all transactions (i.e. the blockchain) makes the information susceptible to denomination measures.

Special Considerations

Ripple overcomes some of the shortcomings of traditional banks. Transactions on the Ripple network are settled in seconds (although the platform often processes millions of transactions). Unlike banks, in which bank transfers can take days or even weeks to complete. Ripple transaction fees are also minimal, with the minimum transaction value required for standard trading being 0.00001 XRP, while the higher fees banks charge for cross-border payments.

As of November 2021, XRP was worth around $1.20 and Ripple was the 7th largest cryptocurrency with a market capitalization of over $56 billion.

Leave a Comment