In July of 2023, Ripple emerged victorious from a lawsuit, validating that XRP, sold on public exchanges, is not a security. In light of this, you might find yourself asking, "What is Ripple?" or "What exactly is XRP?".
In this article we will delve into Ripple and its native asset, XRP, analyzing its unique features and functionalities.
Ripple, The Company
Ripple, the company behind its native asset XRP, formerly referred to as Ripple Labs, functions as a global payment settlement system designed for processing transactions in a fast and cheap manner. Imagine Ripple as a middleman, enabling financial entities to interchange any value unit across both digital and traditional currencies globally.
Ripple's global payment solution is authorized by a payment network called Ripple Network (RippleNet), utilizing the blockchain XRP Ledger (XRPL).
Now that we have a basic understanding of Ripple, let’s learn more about XRP.
What is XRP & XRPL?
XRP is a specific type of cryptocurrency powered by the blockchain, XRPL, which is used for facilitating cross-border transactions. This blockchain is quite unique from other types, such as Bitcoin, because it does not run on a Proof of Work (PoW) consensus basis. Instead, the XRP Ledger uses a unique node list (UNL) where it sets a list of trusted individuals to decide what transactions get added to the blockchain.
Therefore, no mining is involved! XRP comes pre-mined with a capped token supply of 100 billion.
On the XRP Ledger, XRP transactions arrive at consensus in a mere 3-5 seconds, utilizing only a small fraction of energy. This makes it a significantly more expedient and efficient system compared to Bitcoin.
Why Investors Like Ripple & XRP
With the traditional banking system, institutions process international transactions through a protocol known as SWIFT. While this allows for global transactions, there's an inherent delay for the final settlement that might not necessarily be efficient. Additionally, executing international transactions through SWIFT comes with a high cost. It stands in contrast to Ripple's core mission, to alleviate the reliance on banks and payment providers for international money transfers, optimizing efficiency and cost-effectiveness.
Now that you have an understanding of Ripple and XRP, one can see how this technology could be implemented globally in the traditional banking industry. If you’re looking to buy and sell XRP, you can do it with the benefits of a tax-advantaged crypto IRA at iTrustCapital!
Create an account or log-in today to start buying and selling through your tax-advantaged IRA.
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
© 2023 ITC2.0, Inc.
All rights reserved.