Earlier today, XRP — the cryptocurrency run by a fintech startup Ripple — hit an essential new milestone, or rather its ledger (XRPL) did. According to new data, XRPL has just managed to successfully close its 50,000.000th ledger, after operating continuously without any reported issues. In the process, it verified more than one billion transactions.
This is a massive milestone for XRP and Ripple alike, as it proves the efficiency of XRP underlying technology, as well as the utilization of XRP as a cryptocurrency.
XRPL explained
As many already know, XRP does not operate on traditional blockchain technology, like the one used by Bitcoin, Litecoin, and other altcoins. Instead, it uses the Ripple Protocol consensus algorithm which stores all of the account and transaction information on the XRP Ledger, which is, a transparent, distributed database.
Its network is managed by a group of independent validating servers which are constantly comparing their very own transaction records to one another, thus ensuring that no false transactions are being made. These servers could belong to virtually anyone, including market makers, banks, or anyone else who wishes to operate them.
Another great advantage of Ripple’s system is that it allows for near-instant validation of accounts and balances. Notifications of verified transactions become available within only a few seconds, which is a significant improvement on Bitcoin and other cryptos. However, the payments are still irreversible, just like with other cryptocurrencies.
Who is using XRP?
Ripple’s plan is not to use XRP as digital cash, but rather as a method of powering the company’s payment solutions, such as xCurrent and xRapid. These are payment solutions that Ripple has created itself, and its goal is to offer it to the banks and financial institutions around the world.
These institutions still use old, outdated technologies that usually require 3-5 days to process international transactions. XRP can do it within seconds, and it would act as a middleman between different banks, located in different countries.
Simply put, when a client comes to the bank wishing to send money internationally, they would deposit their fiat money, and the bank would simply send the appropriate amount in XRP to the other institution, which would receive it and provide the receiver with the appropriate amount in their currency of choice.
According to Ripple CEO, Brad Garlinghouse, over 200 banks have already agreed to start collaborating with Ripple and utilizing the company’s payment solutions, which appears to be accurate, considering the new milestone. Of course, XRP price is still meager, currently sitting at $0.25 per coin. Even though this is a low price for XRP, the icing on the cake is, unlike many other cryptocurrencies — its current value is even lower than it was at the beginning of this year.
However, the Ripple’s native coin’s value directly depends on how many banks use it, and how useful they find it to be. On the other hand, the value of coins like Bitcoin depends on the investors’ sentiment, and whether or not they are willing to buy BTC.
Conclusion
In the end, Ripple and its XRP have hit a significant milestone today — one that might even encourage others to join in with Ripple and start using its solution(s). That way, banks wouldn’t have to join the crypto industry in full, but still, improve their technology and remain relevant in a world where transactions are made within seconds, instead of days, or even weeks.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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