Read News For Me
XRP is the token that was created by Ripple Labs in the year 2012, and XRP currently hovers in the top 10 cryptocurrencies by market capitalization, typically from day to day. Its main goal is to make sending money as easy as sending an E-mail; XRP is not a traditional type of currency out there in the market.
In the current financial system, we use the SWIFT banking method or the SWIFT payment method to send funds over international waters. With the current existing SWIFT method, users have to wait for 3–5 business days for the funds to reflect in the beneficiary’s account. Since the funds go through a network of intermediary banks, the user also has to pay banking fees for this transaction.
Ripple net wants to decentralize the current system of these transactions, and that’s through a consensus protocol. Within this consensus protocol, they have nodes and validators which process and validate a user’s transaction. With XRP, a user can expect the beneficiary to receive his/her money within 3–5 seconds instead of 3–5 business days, and with using XRP, a user can expect virtually 0 transaction fees.
XRP wants to create a universal bridge token that all the other tokens use as a standard, and hopefully, this will come with the reduction of exchange fees. There were 100 billion XRP tokens created, out of which 80 billion tokens went to Ripple labs to be released to the public over time. The rest 20 billion tokens were for the three founders.