Ripple or XRP is a cryptocurrency that is designed to have faster and cheaper payment systems for financial institutions. XRP holds the seventh position in the current ranking of the largest cryptocurrencies. After a whole three years, XRP has crossed the $1 mark and saw a 111% surge within just 15 days! One thing is for sure now, it isn’t going back down any time soon! In this article, we shall discuss the various price predictions in the long run, a little about XRP, what to be careful of, and more.
What is XRP?
XRP is a crypto currency that is designed to serve as a transitional currency for transactions covering multiple networks and crypto-assets between businesses. It works on its native XRP ledger blockchain. The general agreement and protocol on XRP are different from other blockchains.
There are different types of nodes or servers on the XRP ledger network, the main three ledgers are the validator, hub, and stock.
- The validator validates the order of transactions by comparing their versions of the hedger. Hedgers use contracts to reduce the risk of losses caused by volatility of the market. This is done by buying and selling future contracts to manage and offset risk in the future markets.
- The hub consists of information relays that broadcast transactions and state the changes.
- Stocks are connectivity nods for application developers.
The validator and hub nodes work together to sort transactions and build ledgers in the order they were conducted. All the nodes contain lists of trusted validator nodes. Unlike cryptocurrencies like Bitcoin, XRP does not have a mining system, they are pre-mined at launch. Meaning, you will not be able to earn XRP like coins.
History of XRP
Ripple was first released in 2012 by two people. This network uses XRP as its cryptocurrency as a form of money exchange, like the aim of other crypto currencies. The difference is that it focuses on serving banks and other financial institutions by replacing traditional modes of payment where cross-country payments are done after transferring the amount in that nation’s currency to the current.
Algorithm & Mechanism of Ripple
XRP uses cryptographic algorithms like SHA-512, EdDSA, and ECDSA. SRP has a total of 100 million supply and in 2017, 55 million XRP were locked into escrow accounts on the blockchain. This algorithm validates transactions by comparing transaction records until they reach an agreement. This process only takes three to five seconds and can handle up to 1500 transactions per second. This makes this network faster than other blockchain networks.
When a blockchain is released, a fixed amount of 100 billion XRP was created. The first 80 million was given to the people and the rest was given to the developers. Although almost all cryptocurrencies have similarities with Bitcoin, the main difference between XRP and Bitcoin were its market features, technology they use and the process where they resist fraud.
The mechanism of Ripple is simple. When banks use this network for cross-country payments, they can either use XRP as a bridge currency or leverage to optimise the existing transfers.
Where to Buy Ripple?
Binance, Kraken, and other cryptocurrency exchanges offer XRP with pools along with other fiat currencies. The users have to have an account which is verified and they need to deposit funds to start trading. If users want to store the XRP, software wallets like XUMM, Trexor or other applications are available. Every crypto wallet will have a pre-requisite minimum deposit of 10 XP to maintain the network’s stability.
Concerns Related to XRP
There are cases against Ripple regarding whether they are offering security offerings that are not registered. This created an initial distrust among XRP’s stability and availability in the market. Competitions from other blockchains have also challenged the ranking of the currency although, now it is relatively stable.
As the network expands, there are chances for this network to be visible in upcoming markets as well.
Price Prediction Of XRP
The recent election had a wide impact on all markets. There was a surge in the price of Bitcoin. Ripple has also accumulated 320 million XRP in the last few days. This reflects the growing market interest in crypto amidst positive market trends.
XRP has recently outperformed other crypto currencies due to the forecast over the regulations in the US. With Trump’s win, the global crypto market has fueled the US appeal, hence, many currencies gaining traction.
XRP price was over 31% during writing and the exchange hands are at $1.15 which is the highest since 2021. Popular market analysts have even predicted that XRP will be $2 in no time. This sparks confidence among traders and hence, the surge will be higher.
The efforts by the Network is also consistent which makes more and more investors pool in. Once XRP hits $2, popular analyst Egrag Crypto says that it will rally to $6.4 next if not, it will maintain above $1.10. After the target of $6.4 is reached, the next target would be $13 which will create bull through and through.