Ripple XRP: Asset Built For Global Payments
By Kapil Rajyaguru
Cryptocurrency is a rapidly growing sector with new technologies and names coming into play daily. One of the most polarizing subjects in this sector is Ripple XRP, a private-company-founded platform and cryptocurrency token launched in 2012.
What Is Ripple?
Ripple is a blockchain-based money transfer network designed to meet the needs of financial service industry.
Ripple Labs is the name of the US based company that issues its own cryptocurrency.
What is XRP?
XRP is the native cryptocurrency on the Ripple network that runs on the XRP Ledger, a blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
XRP constantly lists among the top 10 cryptocurrency by market capitalization.
As of January 2022, XRP has market capitalization of $18.3 billion with circulating supply of 50.6 billion XRP and a max supply of 100 billion XRP.
What is XRP Ledger?
XRP Ledger is an open source, permissionless, distributed ledger that has the ability to settle transactions in 3 to 5 seconds.
History of Ripple
Ripple Labs was founded by Chris Larsen and Jed McCaleb in 2012.
The company was originally branded as Open Coin, but was rebranded to Ripple in 2015.
David Schwartz co-authored the original Ripple whitepaper and as of now, he serves as Ripple’s chief technology officer.
Ripple Labs currently employs over 500 people, has 9 offices around the world.
The Purpose of Ripple
Ripple’s main goal is to connect financial institutions, payment providers and digital asset exchanges to allow fast and low-cost transactions for global payments.
Ripple can be regarded as competitor to already established financial infrastructure services such as SWIFT, which is used by banks and middlemen dealing across various currencies.
Ripple is used as a payment solution by banks, governments and institutions.
Ripple’s primary use cases are cross border payments, crypto liquidity and CBDC.
Ripple XRP Vs U.S. SEC
Ripple is currently the target of an ongoing U.S. Securities and Exchange Commission (SEC) lawsuit that began in December 2020.
The SEC contends that XRP counts as security and falls under its purview. The agency is suing the company and two of its top executives for allegedly issuing and selling $1.3 billion in unlicensed securities in the form of XRP.
Ripple has denied the allegation.
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