Ripple’s XRP is a big player in the cryptocurrency world. Ripple Labs, the company behind XRP, has been around since 2012, making it one of the earliest players in blockchain, even before Ethereum. Unlike Bitcoin, Ripple’s network is built to be faster and cheaper, and XRP serves as a bridge currency for financial transactions. XRP is tailored for banks and financial institutions, so its blockchain is centralized, and there’s no mining of XRP.
In this blog, you will learn how Ripple stands out in the crypto market.
How Is Crypto Better Than Other Currencies?
Here we have listed down a few ways through which you will learn what difference Ripple has as compared to other currencies.
Control Over the Blockchain
Some people claim that Ripple controls its blockchain because it has six validators on its default list, which is utilized to attain the quorum-based consensus. However, that is not true, and in reality, nodes can choose their own list and whomever they prefer for the Unique Node List (UNL).
No Incentives For Validators
Unlike Bitcoin, Ripple doesn’t reward validators for adding blocks. They believe validators should prioritize network stability and reliability. That is also the reason there are fewer validators, as there is no financial incentive to run one in Ripple unless one is an active user of the ecosystem.
This crypto is not mined or minted; 100 billion XRP were pre-mined at launch. Eighty billion went to Ripple Labs, which sells XRP to fund the network and is being sold periodically at market rates for funding the ecosystem.
Twenty billion went to the co-founders. As there are regular sales, the supply is difficult to forecast, even though a little of XRP burns with each transaction. Right now, around 1 billion XRP is released in a month.
Ripple’s customers are mostly financial institutions, not individual consumers. This makes it more fascinating than others. The network is called RippleNet, and it serves banks, offering a fast and reliable global payment network. The customers of this network inсlude hundreds of banks and multinational organizations of all sizes. It doesn’t require any third party for a ‘pre-fund’ account, as needed with any traditional wire transfer.
Speed & Costs
Ripple’s lack of mining reduces the environmental impact of other cryptocurrencies. Transaction costs are super low, around 0.00001 XRP. Transactions are fast compared to other currencies, too. Where it takes around 10 minutes for a block to be solved, with XRP, it takes 3 to 6 seconds. In around 3–6 seconds, the transactions will be sorted, agreed and easily added to the blockchain. This makes it an interesting payment option for international transactions too.
XRP Ledger lets users use any currency for transactions, including fiat and digital currencies. This is great for foreign exchanges and reaching markets more quickly. Someone who doesn’t want to go through the whole international process can make the exchange with local currencies.
To Wrap It Up
Ripple’s XRP has unique features that set it apart from other cryptocurrencies. It offers auto bridging that finds the ideal exchange rates for the parties. Now, you can get all the perks that Ripple has to offer, all thanks to XChanger. You can get our services in the UAE with easy bank transfers. Scroll our website now and get amazing services within a few clicks.