What is Ripple XRP? Everything You Need to Know

Once upon a time, the only cryptocurrency alive was Bitcoin 🥇. But, Bitcoin transactions were slow and expensive, so a group of developers, including Chris Larsen and Jed McCaleb, decided to create “a better way” for financial transactions. This dream birthed what we know as Ripple today 🤨. 

While Ripple is the company behind XRP, the token is creating a way to make cross-border payments faster and cheaper. Banks and financial institutions already see this, and they are adopting XRP within their systems. But that’s not all, so grab a seat and let’s talk about XRP in detail. 

What is XRP?

First things first, Ripple is the company behind the XRP token. So, while many use Ripple and XRP interchangeably, XRP is a crypto token independent of Ripple Labs (the company), which is a cryptocurrency services and technology firm 🏢.

You can see Ripple as a football team, while XRP is its star player. And their game plan? To transform how people move money around the world 💰. 

When people want to send money, they use XRP, Ripple’s native cryptocurrency. And since it’s efficient for cross-border transactions, you can simply send XRP to someone abroad or accept XRP as a means of payment for your goods and services if you have international clients. 

This eliminates challenges like longer processing times and high international transfer fees that are peculiar to banks and other financial institutions. Some traditional businesses get this, and don’t want to be left behind. 

That’s why top financial institutions like American Express and Standard Chartered – both of which saw XRP’s potential in helping them cut costs, speed up transactions, and enhance their services for customers. Now, they know Ripple is not trying to steal their cheese, it’s offering an upgrade they can implement in the financial world 🤭. 

Want to buy XRP in Nigeria with Naira 🇳🇬? Here’s a quick guide to help you. 

How Does XRP Work?

XRP operates on its own decentralised blockchain called the XRP Ledger (XRPL). This database keeps track of all XRP transactions. To process transactions, the XRP Ledger uses a unique system powered by trusted validators that make up its Unique Node List (UNL). 

Think of it this way: for a transaction to be processed, XRP has a trusted group of people who agree a transaction is genuine and confirm it. Hence, the name “validators.” The process of validators agreeing on the legitimacy of a transaction is super fast. That’s why XRP takes a few seconds to process up to 1,500 transactions 🤯. 

Similarly, XRP is designed to bridge cross-border transactions. Let’s say you want to send money from Nigeria to a supplier in China 🇨🇳. Instead of going through rigorous, slow, and expensive banks, you can use XRP as a bridge currency. That way, your Naira gets converted to XRP, then XRP gets converted to Yuan 💱. This makes the whole process much faster and cheaper. 

What Are the Use Cases of Ripple?

XRP is popular in the digital payments space for seamless cross-border transactions, but here are other purposes the cryptocurrency can serve:

• Crypto trading and investing 📈
• Paying for online items 🛒
• Accepting payments for e-commerce businesses 💸
• Bank and financial institution settlements 🏦
• Decentralised finance (DeFi) lending, borrowing, and liquidity provision 💹

Ripple and the Legal Drama 

It hasn’t been smooth sailing for XRP in the crypto market – thanks to Ripple’s legal battle against the United States Securities and Exchange Commission (SEC) ⚖️. The authorities described XRP as an unregistered security and accused Ripple of selling a security that’s not licensed by them. 

Despite an initial favourable court ruling for XRP in the Ripple vs SEC case, the SEC immediately appealed, and the legal battle has kind of overshadowed XRP’s growth in the US. But, Ripple is fighting back, and Donald Trump’s pro-crypto administration is predicted to bring the case to an end in Ripple’s favour. 

Final Thoughts

XRP has already made a name for itself in the digital payments space, especially as far as cross-border transactions are concerned. Will XRP take over the world of international payments? Well…The future’s unwritten. But the coin’s history and market performance suggest it is worth keeping an eye on. With its tech, partnerships, and even speculated government support, the future looks bright. 

Ready to buy XRP in Nigeria? All you have to do is head over to the Quidax website or app, sign up, complete KYC, and start trading XRP and 60+ other cryptocurrencies. #WAGMI. 

Disclaimer: This content may cause extreme FOMO (Fear of Missing Out). Side effects of investing include sudden wealth (or, you know, the opposite 😢). Please do your own research (DYOR) or speak to your financial advisor before making any decisions.