The main purpose of Ripple is to enable secure, instant, and nearly free global transactions with no chargebacks or fees.
The ripple company employs a native token called XRP which stands as an intermediate mechanism between two currencies or networks.
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In-depth Understanding Of Ripple XRP
First of all, it is crucial to know the difference between Ripple, XRP, and rippleNet.
First and foremost, XRP is a digital cryptocurrency that also operates on the RippleNet digital payment platform to facilitate fast conversions between different currencies.
RippleNet operates on a distributed ledger database called XRP ledger. But Ripple is the mother company that runs the rippleNet.
The system operates on an open-source and peer-to-peer decentralized platform that akes seamless transfer of any currency possible. Be it dollars, Euros, Cedis, or any cryptocurrency like Bitcoin or Dogecoin.
XRP -The Digital Currency Of Ripple
The digital currency serves as a bridge to other currencies on the platform. It works equally with any fiat or cryptocurrency, which allows easy currency exchange on the platform.
Every currency on the Ripple platform has its own gateway. An example is CADBluzelle, BTCbitstamp, and USDsnapswap.
A deeper example is, if Frank wants to send Etheruem to Victoria, Frank does not necessarily need to have Ethereum in possession before He can send it to Victoria, instead, He can send U.S Dollar (USD) to his gateway and Victoria will receive it as Ethereum from her Gateway.
Multiple gateways are needed to initiate a transaction forming a chain of trust rippling across the users.
There is a risk when using gateways, holding balances with gateways exposes a user to counter risk. It’s a risk that also relates to the traditional banking system.
If the gateway loses its liability, the user can also lose the value of their money or assets held at the gateway.
Users that do not trust the gateway can therefore transact with a trusted gateway that one way or the other deals with the “untrusted Gateway”.
With this method, the IOU will be transacted through a creditworthy gateway certificate. However, counterparty risks do not apply to Bitcoin and Altcoins since a holder’s Bitcoin is not another holder’s IOU or liability.
The live price data of the Digital coin is $0.816407 USD that comes with a 24hr trading volume of $2,434,595,108 USD. Ripple is down 0.38% in the last 24 hours.
It has a current coinmarketcap ranking of #8 with a live market cap of $38,573,042,351 USD.
Ripple XRP has a circulation supply of 47,247,295,769 XRP coins and a max. supply of 100,000,000,000 XRP coins.
How Ripple Work
Ripple system does not work with a proof of Work (PoW) system like bitcoin or a proof of stake system like Polkadot. But rather, it works on a consensus protocol with the aim to validate account balance and transactions on the network’s system.
The consensus helps to improve the ethics of the system by preventing double-spending.
Ripple tracks all IOUs in any currency for any user’s gateway. IOUs credits and transactions in ripples are displayed publicly on the consensus.
But even though the transaction is publicly recorded on the network, the data is not tagged to any individual or account, or business, however, these records make the information on the network available for de-anonymization.
How To Buy Ripple XRP
Xrp can be bought on any exchange that offers the Token. Some of the most prominent places to exchange XRP against other cryptos are
The process is very simple and similar to online brokerage.
You may need to verify your information before you can purchase XRP on the exchanges using your creidt card.
All you need to do is provide your information such as name, address, National identification card, and other official public documents like passport and driver’s license as requested by the exchange.
Usually, it takes about 2 business days to be for your account to be verified after submitting all your information. H
XRP works on its own distributed Ledger (XRPL). Because of that, the actual XRP tokens cannot be bought on a decentralized crypto exchange based on the Ethereum ecosystem.
But instead, what these exchanges sell is the synthetic version of the cryptocurrency named the sXRP. This represents the real cryptocurrency on the Ethereum blockchain and tracks the price of the real XRP.
XRP cannot be staked because its ledger is not based on the proof of stake algorithm. If you want to make profits on the cryptocurrency, you can use a crypto lending service like Celsius, Nexo, or YouHodler.
They offer up to 4.5% annual yield if you deposit your crypto with them. By doing this the service generates yields for you but it comes with some financial risks as your coins are being used by a borrower who is at the risk of failing and losing your tokens.
Price Prediction In 2022
It is expected that XRP might reach $2 in 2022 if the bullish uptrend continues. Crypto experts say the first half of 2022 will show a fast growth of the cryptocurrency.
The digital coin is expected to grow up to a maximum of 25$ then slowly come down with no major falls within the next few years.
Ripple has upcoming partnerships and developments which can let it go up to 2$.
From the price point of view, it is quite optimistic but the fees are undoubtedly feasible for the near future of the digital currency.
Things are going a bit well for Ripple now. It’s expected that the price will keep jumping for some time. Below, I bring you what some leading crypto experts think about the value of the coin in 2022
According to The Wallet Investor, the Ripple price forecast is very encouraging. They expect that the price of the currency will stay above $1.70 for more than half of the year 2022. By the end of the year, the market price will cross 2$ but the maximum price won’t pass $2.5.
With the Changelly Platform, it says with the number of support, partnerships from crypto companies, and the development Ripple has gained so far shows that many believe in the currency and are willing to invest in it. They say the recent Ripple price prediction and movements might gain a tremendous up gain by the end of 2022 and reach an all-time high of $3.84.
Trading Beast is quite optimistic about the price of the coin by the start of 2022. They say the coin will start the new year at $1.58 and the average projected value will move to $1.62 by December 2022. They don’t expect the price to go up astronomically but a solid uptrend is expected.
According to the long forecast, the market value will be highly volatile. They say the price will fluctuate within the range of $1.53 to $1.87.
Do you want to Invest in Ripple?.
The expected growth of Defi is itself is a risk for Ripple. Regulatory tightening has had an important influence in the crypto market in recent and coming years.
This factor may grow due to the active development of digital currencies by the central bank.
The regulators do not want to weaken control over cash flows so they strongly resist the spread of cryptocurrencies. In the upcoming years, the influence of this matter will be stronger than back in 2017 and 2018.
Amazingly the coronavirus pandemic made the virtual market more attractive. The demand for cryptocurrencies and therefore also XRP will remain high.
By next year, we will definitely see a smooth-up gain in Ripple(XRP) despite the recent drop in the rate due to the situation of SEC lawsuit of the sales of XRP.
Calculation from April 2021 to November 2021shows that the XRP/USD pair still have major speculative importance. Moreover, the XRP/USD pair still has high volume and volatility.
The XRP proved it can triple its capacity then lose almost everything. Which is goes in favour of high-risk or aggressive traders.
Investing in Ripple looks good from my point of view as most experts expect the value of the coin to grow.
In conclusion, Ripple has a bright and good future in the crypto market ahead of it in 2021 and beyond. With the various ongoing developments going on in their ecosystem, the crypto might reach higher heights.
Bullish reports say it may even reach $10 if investors decide that it’s a good investment and they jump on it like the mainstream cryptocurrencies such as Bitcoin and Ethereum.
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