Cryptocurrency, in its simplest explanation, refers to digital assets one can have and trade under a spread out system, but all transactions go to a public ledger for recording and verifying the transaction, which is called the blockchain technology. There are many cryptocurrencies available, and they are more vulnerable than fiat money, but nonetheless hold monetary value.
Many people think of it as the currency revolution, since one of its greatest distinction is how it does not rely on any central bank out there to be recognized. It creates value on its own and people’s mutual agreement about it. So, it is quite parallel to the real world as we see it.
The aspect of decentralization in cryptocurrencies is a double-edged sword. If for some it makes it easier to trade and not spend so much, some thinks it is not as good as when it is not institutionalized, seeing as how the security part becomes vulnerable. But what if you can have both aspects of centralization and cryptocurrency trading? Well, you can—through Ripple’s XRP.
What Ripple’s XRP is
As a centralized cryptocurrency, XRP aims to better money transfers between one country to another, which would usually incur so high of a transaction fee, whether through a SWIFT bank or decentralized cryptocurrency trading.
Ripple wants to change that into either the average price or even cheaper. Since the world is all the more interconnected, then all the more should institutions welcome these things. So, you can say that Ripple gives more opportunities for people to thrive.
It also aims to reduce the time used for transactions, since most take three days to one week to get processed. And seeing how sometimes certain aspects make it much harder to get money into another one’s pocket outside your country’s border, it seems that he status quo is ineffective.
So, different from decentralized cryptocurrencies who want to spread the aspect of having no financial institutions to take over, Ripple is envisioning itself to be its own separate financial system, allowing banks to transfer money along themselves and to those abroad, and people would be looking at xrp price predictions instead of fiat money or nay other cryptocurrency.
Working with Ripple’s XRP
Ripple’s XRP does not actually have any blockchain or mining concept to them, though being labeled as a cryptocurrency. The currency works on its own, for its own. So, any transaction goes through their centralized brand, and no one can mine for the two parties making the transaction.
Moreover, algorithms as to how it works is done by itself, too, with over 100 billion XRPs created for the people who use it, xrp price predictions are then getting more and more traction, because people are getting the benefit of a swifter transaction through the currency for less the price.
As Ripple’s XRP continues to grow, we see how it starts to grows in four areas that traditional and decentralized crypto money would work on: payment, investment, currency exchange, and international transactions.