The role that XRP token plays in Ripple products
Connect with us

Blogs

The role that XRP token plays in Ripple products

Published

on

XRP token

Lots of critiques have been surrounding the current valuation of the Ripple token, XRP, lately. Regarding this, experts have concluded the coin actually has not managed to get enough traction on the market as to guarantee its current value. Accordingly, they assure this traction more likely can assume the form of its current valuation whether as a mediator for banks transactions or as an asset on the platform Ripple owns.

Indeed, the XRP token plays a very important role in the ecosystem of the company; it has become crucial for the value Ripple is setting on the market currently. However, right in the middle of the general uproar, there remains the question that what’s the exact utility XRP has on the product catalog Ripple owns.

Below, I’ll give you a short explanation of XRP’s role:

What is exactly the role that the XRP token plays on the Ripple Ecosystem?

In the current financial landscape, cross-border operations happen among isolated systems — which are not connected in between. To solve this fact, Ripple adopts the inter-ledger protocol that serves as a linker between systems and enables payment routings through making an interconnection possible between ledgers.

To understand it better, you can compare it to the concept of TCP/IP; the protocol behind a computer’s capability of talking one to another — basically, it just underpins the web (internet) systems and allows this to be a reality.

Like this, the ledgers constituting Ripple’s protocol can get attached to the networks of several financial institutions or even can serve as reliable nodes in networks approaching more than one entity at once. The technology of this protocol is built to perform faster cross-border transactions on regular financial systems.

Nevertheless, not all of the ground is gained by Ripple. As much efficient their tech may be, the issue of predefining fiat currencies in the accounts for foreign exchange operations remains unsolved. These accounts are known as Vostro and Nostro, and intermediate financial parties manage them to guarantee liquidity for their operations with foreign currencies.

The moment XRP comes to action

All of the products developed by Ripple use XRP for guaranteeing a swift liquidity. xRapid, one of the products Ripple has created, makes use of the token as an asset for financial institutions and businesses to use in order to make transactions between unique fiat currencies possible.

Like this, financial entities are able to purchase a determined amount of the token, and then send it out using the network of the company. In this matter, Ripple defines this process as a “Third-Party Liquidity Provisioning” — and asseverates that it’s actually perfect for bank units that are not connected somehow one to the other.

Subsequently, this isn’t a rocket science. In fact, that is the exact role the USD has been playing for several years in the financial market when an operation is going to be made, let’s say, between two not-so-common currencies.

The benefits of XRP can actually be enjoyed with the other products of the company too, including xVia and xCurrent. However, according to Stefan Thomas, CTO of the company, XRP is faster and more accessible at the fractions of only pennies — it takes just 3 seconds for a transaction when compared to other virtual coins on the market. The same way, XRP also offers other benefits such as sourcing banks liquidity on demand, in real time, and that without any need to have prefund nostro accounts.

Nevertheless, as like any other thing on the planet, not everything about Ripple is positive – XRP possesses s pretty robust technology, but there still is room for improvement (especially when we talk about the starters). For instance, the bridge asset status of XRP results in a dependency from financial institutions to Ripple in order to provide liquidity in operations.

We will be updating our subscribers as soon as we know more. For the latest on XRP, sign up for our Telegram!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of David Yu via Flickr

Blogs

How Can Foreigners Get Loans in Singapore

Published

on

loans for foreigners in Singapore

Foreigners who are residing in Singapore and looking for financing could do so in the form of a payday loan. It is good to find out that you can borrow the money from a reputable lender and that the interest rates are low enough for it to be a viable option. Online lenders that specialize in doing business in the country can certainly help one. These online companies are not only reliable, but their service is fast.

At the same time, many cannot afford a high standard of living. Many individuals cannot afford essentials, such as a car or a house. It can be difficult for the majority of the working class to scrape through on their basic salary. 

What defines a foreigner in Singapore? 

A foreigner in Singapore means that you are not a permanent or natural citizen there. As a foreigner, you will not be holding a Singaporean passport. The rules can differ a little for foreigners and residents. Singapore, being a multinational hub, houses many foreigners within the city. Foreigners come to Singapore for the many attractions it offers. Many people come to Singapore for Work-related purposes. A lot many also come for vacations or to visit a friend or a relative. Some foreigners come with a plan to move to Singapore permanently, attracted by their lavish lifestyle. Singapore also houses many International students attending many esteemed Singaporean Universities.  

Continue Reading

Altcoins

Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

Published

on

Aluna.Social

When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve, unlock their full potential, and improve trading performance.  Cryptocurrency trading can…

Continue Reading

Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

Published

on

CoinFlip

As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies like Bitcoin and Dash, to help protect their assets and hard-earned…

Continue Reading

Press Release