Ripple, RippleNet and XRP
The Ripple project began to be built in 2012 when Jed McCaleb and Chris Larson took over the Ripple payment platform that was first introduced by Ryan Fugger in 2004. Ripple is the company behind RippleNet and XRP.
Ripple operates the RippleNet, which is a digital payment platform consisting of banks, payment providers and others to transfer international payments.
XRP Ledger is an open-source distributed ledger database not based on the blockchain. XRP is the cryptocurrency native to the XRP Ledger. The currency runs on the digital payment platform called RippleNet; however, any currency can conduct transactions on the platform.
An Alternative to Fiat Payment Systems
The cryptocurrency is a cheaper, more scalable alternative to international payment platforms like SWIFT.
While currencies like Bitcoin (BTC) use the inefficient proof-of-work method to authenticate transactions, the XRP Ledger can process transactions whenever unrelated validator nodes agree the order and authenticity of the transaction, usually around every 3-5 seconds.
Ripple is an active member of the international XRP Community that maintains the RippleNet ledger.
Ripple launched Xpring (Spring) in 2018, designed to provide proven entrepreneurs with the capital to run projects. All entrepreneurs utilise the digital asset XRP and the XRP Ledger, to solve their customers’ problems in a transitive manner.
Senior Vice President Ethan Beard of Xpring relishes assisting new businesses so that they can take full advantage of new technologies and advancements to generate sustainable growth.
“Blockchain and digital assets have the ability to solve important problems and XRP – with its speed, scalability and demonstrated real-world use case – is a great tool for startups and entrepreneurs to build businesses around.”Ethan Beard, SVP of Xpring.
The Covid19 Slap Down
The coronavirus harmed all markets, but some currencies were harder hit than others. The volumes of the Ripple currency took a sharp blow in the 2nd quarter, and Ripple published an average daily volume plunge from 322 million during the first quarter to just 196.3 million, that is a 40% drop.
Like many currencies it travelled sideways for several months, struggling to keep above $20, but that all changed at the beginning of August.
The Pheonix Rises
On-demand liquidity (ODL) is a payment gateway that leverages XRP, according to Ripples latest report, ODL now accounts for 20% of the Ripplenet volume.
Ripple observed that its ODL transaction volume increased 11-fold during the first half of 2020 when compared to a year ago. The earnings report focus on over-the-counter sales has served to provide increased liquidity to Ripplenet’s ODL customers.
Furthermore, liquidity has evolved from new product offerings in the derivatives market that target this currency.
Concerns Over Market Manipulation
When Jed McCaleb, the co-founder of Ripple, left the company he was owed 9 billion XRP. Initially, the quantity of the currency that McCaleb was permitted to dump on the market each year was restricted. However, in 2016 that agreement was reviewed, resulting in permission to sell a percentage of the coin’s daily volume.
While trading volumes are expanding, so the quantity that he can dispose of also increases significantly. This month the volume increased, and $5.2 billion of the currency traded, this is not all due to Jed McCaleb as Ripple published in its second-quarter XRP Markets Report that it continues to swamp the market with more XRP. The quantities traded are causing investors to become somewhat anxious.
Ripple believes that the sales spike is partly because of the broader acceptance that XRP has experienced and its assimilation into diverse markets.
Cautious But Optimistic
Despite fears of manipulation of the markets, hopes are high. The bulls are back, and the markets are flying. Optimistic investors and traders alike watch daily trends, hungry for good, realistic technical analysis, and they have money to spend.
Disclaimer: Opinions expressed at Bitcoin News Agency are not investment advice. Investors should do their own thorough research before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. Bitcoin News Agency does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Bitcoin News Agency an investment advisor. Please note that Bitcoin News Agency participates in affiliate marketing.
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