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The role that XRP token plays in Ripple products

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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

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Here’s Why This Coin Still Has Wings (WINGS)

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WINGS, a decentralized crowdfunding platform based on the Ethereum blockchain, has had a great run over the past two months. Culminating in a peak of US $.23 just a few days ago, the currency behind the product has more than doubled since it’s lows of early September.

Despite the slight downturn WINGS is currently experiencing, this crypto-favorite may not be done running up the green candles on your favorite exchange just yet. A small drop like we had today was actually expected and could be considered healthy by long-term investors. These dips are also appreciated by those of us waiting to get in on a project we feel has real potential. WINGS has shown us that potential and is now presenting a great buying opportunity for speculators and traders looking for the next wave of support to lift this coin into the stratosphere.

What is WINGS?
WINGS was created to nurture project proposals via the Decentralized Autonomous Organization (DAO) model. Using blockchain networks and smart contracts, the platform allows the WINGS community to promote proposals with the greatest chance of positive returns. WINGS, in essence, is a decentralized forecasting ecosystem, where token holders are given an incentive to make choices concerning projects on the platform.

The DAO is a popular concept for crypto-projects that want to remain entirely on the web. Using the peer-to-peer technology of blockchain and smart contracts to enforce the rules of participation is…

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6 Blockchain Predictions For 2019

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As 2018 moves closer towards its end, investors, developers, and tech enthusiasts are starting to turn their gaze towards the future. 2019 is less than two months away, and it promises new breakthroughs and large changes. This is especially true when it comes to blockchain technology.

While 2018 was an important year for this technology’s development, many are wondering what awaits us in the near future. Because of this, we have created a list of 6 predictions regarding the blockchain, as well as what might happen to it in 2019. Let’s begin.

1. Search for new and better business use cases

Blockchain technology is wrongly seen by many as a magical way to resolve all issues that we struggle with today. However, while it is true that blockchain can help with a lot of them, there are still numerous other problems that are better suited to be solved by alternative technologies. Robotics, AI, and similar technologies are not to be discarded in blind faith in the blockchain.

Researchers and developers have recognized this, which is why 2019 will be dedicated to finding specific use cases for blockchain technology. Blockchain will be used in situations where it can have the strongest positive impact. In other words, the goal is not to find places where this tech can fit, but to find places where it is the best fit.

2. Fixing blockchain industry’s image

For a lot of people, blockchain…

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TRON DEX Goes Crazy, TRX Founder Asks For More Projects

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Less than a week ago, TRON (TRX) community uncovered a new DEX (decentralized exchange) on Tronscan.org. Since TRON community is among the strongest and most supportive communities to ever support a coin, trading activity on this DEX quickly skyrocketed.

So much so, in fact, that TRON’s founder, Justin Sun, felt that he should share this fact on his Twitter account.

TRON DEX sees massive growth in activity

Since Sun shares a lot of traits with TRX community, such as tirelessness and fascination with this project, he was quick to urge the community to come up with additional tokens and projects.

While Sun’s statement that the activity on the DEX is “going crazy” is pretty accurate, many do not realize just how accurate this is. It should be pointed out that the number of tokens on the exchange was 3 on November 10th, when the DEX was originally uncovered. Today, on November 13th, the number of available tokens has doubled.

In addition, 4 out of 6 trading pairs offered on the exchange have experienced significant gains, with the remaining two experiencing only slight drops. The growth was experienced by Dice/TRX (146%), TronWatchMarket/TRX (8.27%), WIN/TRX (89%), and SEED/TRX (1.73%). The drop was experienced…

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