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Analyzing recent trends of the Ripple platform

Analyzing recent trends of the Ripple platform
Written by publisher team

Ripple is a high-performance money transfer network that enables much faster and cheaper transactions

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Blockchain technology is the fundamental basis of cryptocurrency. It is a database that collects data and information in the form of groups, also known as blocks, and each block of data is added to another to form a chain. Unlike other cryptocurrencies such as Bitcoin and Ethereum, Ripple, the payment network, is not made of a blockchain but rather a “hash tree.” It works like a blockchain where multiple nodes are used to facilitate transactions. Today we find out what Ripple (XRP) is and why it is one of the top 10 cryptocurrencies.

Ripple: Introduction

XRP is the original token for the Ripple platform created by Ripple Labs, which facilitates reliable and instant payments. Like any other cryptocurrency, XRP runs on a distributed ledger where multiple computers (authentication nodes) verify transactions and keep track of all past XRP activities. The payment process consists of users initiating a transaction that sends information as a single value to a shared public database. Their validation servers and nodes share data, and if the privileged servers report a match, the transaction is authorized and processed.

With XRP, Ripple aims to achieve high-speed transactions. With Bitcoin, the typical time of 10 minutes to create a block can sometimes take up to an hour or more to complete, and with Ethereum, the typical time of around 15 seconds can take longer due to prioritization of important transactions. XRP speeds up the process by using fewer nodes compared to Bitcoin or Ethereum, thus facilitating transactions in less than 4 seconds with network fees of less than a cent.

The system works efficiently. A user on Ripple who initiates a transaction using multiple gateways but tries to transfer the same amount of money to the gateway systems (eg $100), all transactions except the first one will be deleted. Distinguished and unique single distributed nodes, identify which transaction was made first in less than 5 seconds. Ripple keeps a record of all debt securities in any given currency for any gateway or user.

IOU balances and transactions that occur between all Ripple wallets are publicly available in the Ripple consensus ledger.

Although there is no central authority deciding the creation of contracts and transaction confirmations, XRP is not a completely decentralized platform. Instead, the Ripple network is somewhat centralized. It maintains multiple lists of unique nodes that users can select to verify transactions based on which participants they think are least likely to be scammed.

The Ripple network not only facilitates transactions with XRP, but also with other cryptocurrencies, fiat currencies and other commodities.

XRP: The Basics

The maximum supply of XRP is 100 billion, of which more than 47 billion are in circulation. XRP currently ranks among the top 10 cryptocurrencies in the world at around $0.85 per token, with a market cap of nearly $40 billion.

They have recently been marred by regulatory issues with the US Securities and Exchange Commission suing them for being an unregistered security in 2020. The case is currently under trial and has led to the entire price of XRP dropping in 2021 compared to the broader market. The final decision from the lawsuit will be key in giving a significant boost in both cases to the XRP price movement.

short term technical analysis

XRP has struggled during the recent crash of the cryptocurrency market, reaching as low as $0.6 and even lower on other exchanges – with its July plunge revisited. It has now managed to turn the $0.77 resistance into support, with its short-term targets at $0.88 and $0.97. If the run fails to materialize, XRP will have a key level at $0.7 to count on as support.

XRP . Chart

Source: TradingView, Binance

future potential

Ripple is a high-performance money transfer network that allows for much faster and cheaper transactions. Its primary objective is to provide more efficient means of sending cross-border payments in the financial sector and especially in the banking sector, by reducing costs and transaction times by eliminating middlemen. It has already partnered with several major regional institutions to transfer payments in Japan, Philippines, etc.

The idea is clearly ambitious and deserves our attention. But persistent legal challenges may make it somewhat premature to call for an optimistic future. Having said that, the underlying technology behind it is solid, XRP has a large community and loyal contributors that remain one of the most popular and used cryptocurrencies in the world.

Disclaimer:This article was written by Giottus Cryptocurrency Exchange as part of a paid partnership with The News Minute. Crypto-asset or crypto-currency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your research before investing and seek independent legal/financial advice if you are unsure about investments.


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