What is Ripple (XRP)?
Ripple is a payment protocol that connects banks, payment providers and digital asset exchanges. Its primary aim is to provide a speedy and reliable platform for cross-border payments. The platform connects individual banks and payment providers in order to facilitate a frictionless and secure payment system, with reduced risk of fraud or mistakes. Ripple speeds up cross-border payments by ensuring that transactions are confirmed within seconds. Ripple protocol has gained widespread adoption by many banking institutions worldwide including Santander, BBVA, Standard Bank, and American Express, to name a few.
XRP Ledger is an open-source blockchain technology that powers the Ripple Network. The XRP ledger has a range of features that surpasses other platforms, including its unique consensus algorithm and fast transaction speeds. The XRP ledger has a unique consensus algorithm called the XRP Ledger Protocol Consensus Algorithm (XRP LCPA). The algorithm allows transactions to be verified and validated every few seconds, ensuring that the entire network remains secure and reliable. Additionally, XRP Ledger has the capacity to handle large transaction volumes, and its security features make it suitable for use in financial institutions and banking systems.
Ripple was first launched in 2012 by a team led by Chris Larsen and Jed McCaleb. The primary aim of the platform was to facilitate secure, fast and low-cost global money transfers. In its early days, Ripple was known as OpenCoin, but the team behind it eventually rebranded to Ripple Labs Inc. The platform uses blockchain technology and a consensus algorithm to verify transactions. The XRP token, which is the native currency for the XRP ledger, was created by the Ripple Labs team and it functions as a bridge between different currencies.
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How does Ripple (XRP) work?
The XRP Ledger contains a permissionless network that is fueled by peer-to-peer servers. This network enables numerous functions and is centered around the XRP, which has the objective of linking “difficult to couple” fiat currencies. The Federated Consensus algorithm is utilized in the XRP Ledger as opposed to the more popular proof-of-stake or proof-of-work methods. In this particular system, participants are known and trusted by other participants, unlike miners, who are rewarded for securing the network. Once a new block is validated and agreed upon, referred to as a “ledger version,” the block’s content cannot be modified. This feature enables a comprehensive history of the ledger status to be stored by servers in the network. Available languages for the XRP Ledger include JavaScript, Java and Python, among others. Additionally, XRP tokens support Ripple’s RippleNet service, which constitutes a payment API, real-time settlement system and a liquidity product. Furthermore, on-demand liquidity (ODL) is provided using XRP tokens, allowing swift exchanges in the magnitude of just 3 seconds, compared to fiat currencies which can require days.
Ripple and the SEC
Ripple Labs, the creators of XRP token, and the United States Securities and Exchange Commission have been embroiled in a legal battle since the end of 2020 over the question of whether XRP is a security. On Dec. 22nd, 2020, the SEC sued Ripple Labs and two executives for $1.3 billion-worth of XRP trading as security without being registered with the commission. Although arguments have been made for and against the lawsuit, Ripple has contested the claims, stating that the SEC has been biased in evaluating the case.
To determine if a cryptocurrency is a security, the SEC uses the “Howey test,” relying on the Supreme Court ruling on SEC v. W.J. Howey Co from 1946. If an asset is sold with the expectation of getting profits from the efforts of other parties, it is considered a security. As per the commission’s definition of XRP in the lawsuit, the cryptocurrency would pass the Howey test. As all securities must be registered following SEC regulations, the future ramifications of the lawsuit, which Ripple is fighting, would undoubtedly be far-reaching in the crypto world. If Ripple wins, other crypto-based businesses may follow suit with the SEC losing some of its authority. Alternatively, if the SEC wins, it could upend the operations of crypto enterprises, resulting in a fresh set of registration policies applicable to securities.
How to buy Ripple (XRP) on XT.COM?
Ripple (XRP) can be purchased directly from XT.COM by using a debit or credit card. Ripple (XRP) can also be traded for other cryptocurrencies on the XT.COM Crypto Exchange. Live Ripple (XRP) price is updated in real-time on XT.COM. Buy Ripple (XRP) on XT.COM in four simple steps:
- Create your free XT.COM account
Sign up or download the XT.COM app and start the sign-up process. Provide your email address, country of residence and secure your account with a strong password. - Secure Your Account
Ensure stronger protection of your account by setting Google 2FA code and anti-phishing code. - Choose how you want to buy the Ripple (XRP) asset.
Click on the “Buy Crypto” link on the top left of the XT.COM website navigation, which will show the available options in your country. - Buy Ripple (XRP)
Use a variety of payment options to buy Ripple (XRP) on XT.COM.
