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What is Ripple (XRP)?
Ripple is a financial transaction technology that functions as both a cryptocurrency and a digital payment network. It was founded by Chris Larsen and Jed McCaleb in 2012 and was first released in 2012. Ripple’s primary process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing in multiple currencies.
The cryptocurrency’s token is premined, and it trades under the ticker symbol XRP. Ripple is the company and network name, and XRP is the cryptocurrency token.
Ripple operates on an open-source and peer-to-peer decentralized platform that enables the seamless transfer of money in any form, including dollars, yen, euros, and cryptocurrencies such as litecoin and bitcoin. Ripple is a global payments network with major banks and financial services as customers. XRP is used in its products to facilitate quick currency conversions.
The Ripple network does not use a proof-of-work (PoW) or a proof-of-stake (PoS) system like bitcoin or Nxt. Instead, transactions on the system rely on a consensus protocol to validate account balances and transactions. The consensus seeks to strengthen the system’s integrity by preventing double-spending.
All but the first transaction will be deleted if a Ripple user initiates a transaction with multiple gateways but attempts to send the same $300 to the gateway systems. Individual distributed nodes use consensus to determine which transaction occurred first. The confirmations are immediate and take about five seconds because the Ripple is described as decentralized because there is no central authority that decides who can set up a node and confirm transactions.
Why do traders use it in trading?
Traders use XRP because it is the fastest and most efficient digital asset. It provides financial institutions with a quick and dependable option for obtaining liquidity on demand. Traders are using XRP on over 100 markets and exchanges around the world that are unaffiliated with Ripple. It has a low cost when exchanged to other cryptocurrencies when trading.