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The role that XRP token plays in Ripple products

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XRP token
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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.

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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

Altcoins

Ripple XRP Mega Breakout: What’s Next?

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Ripple XRP mega breakout
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The Ripple XRP mega breakout that we were calling for happened and happened much quicker than anyone expected. As we said yesterday:

Nonetheless, IF, Ripple is capable of going ‘topside’ of the .38 figure at any point in the days/weeks ahead, such development, should it occur, would likely trigger its next advance into the .42 – .47 zone, representing a 30-40% move from present levels. On the flip-side, the .25 – .26 area should offer short-term potential support.

XRP is now sitting at .51704  as we write this article this morning, representing gains of 61% since we alerted our readers and our Global Elite email newsletter members.

Ripple XRP Mega Breakout

The Ripple XRP mega breakout is significant because it’s the first time XRP has been above its 50-day moving average since May. Right now, the RSI is approaching 80, so we are in overbought territory and we expect the price to consolidate around the .42 to .47 level before resuming its uptrend.

While some are looking at this as an opportunity to short XRP, we are not of that camp. While some can book some profits and use a trailing stop, any integration of XRP with xRapid has the ability to create a tremendous move in XRP. As Travis Kling said this week on the Off the Chain podcast with Anthony Pompliano, XRP could be the quickest five-bagger investors…

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Litecoin Cash (LCC): The potential mover?

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Litecoin Cash
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Litecoin underwent a hard fork in the past, and that is what led to the creation of Litecoin Cash. Bitcoin has also experienced a hard fork, which has led to the creation of Bitcoin Cash, so this trend is not necessarily brand new.

Forks have occurred pretty often now in the cryptocurrency community, and the perception is that it probably will continue to, as long as the need (forks are often created to overcome issues faced by the originals) remains there.

While the market has been bearish for most of the year, it has been showing some definite signs of life, especially when we look at the kind of price action that has been happening with Ripple recently. Litecoin is also rising in anticipating of its hard fork, which is to be expected.

For those who are unaware, Litecoin Cash was created earlier this year. 10 Litecoin Cash was given to every investor who had 1 Litecoin – and that one move, it’s easy to see, was very massive concerning value.

Charlie Lee, the founder of Litecoin, has come out against LiteCoin Cash, calling it a scam. Many cryptocurrency influencers have come out against Litecoin cash, although there are still others that believe that this is only because the project threatens them.

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Altcoins

The Stage is Set for Stellar XLM vs XRP

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XLM vs XRP
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The digital asset of XRP, did something spectacular on the 18th of September when it shocked the crypto-markets by rising in value by 21%. In a time period that was less than 5 hours, XRP spiked from levels of $0.273 to those of $0.332 and has continued rising. The digital asset is currently valued at $0.36.

xRapid Factor

The reason for the sharp increment in value of XRP was news that the Ripple company was going to launch xRapid in the next month or so. This was after the firm’s head of Regulatory relations for Asia-Pacific and the Middle East, Sagar Sarabhai, made the following comments during a CNBC interview on the 17th of September:

“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production.”

Stellar’s Cross-Border Payments

The news of Ripple launching xRapid has come 2 weeks after the Stellar project and IBM, announced that they were entering the industry of cross-border payments through their new service known as IBM Blockchain World-Wire. The new payment settlement service has been quoted as being ‘near instant’ meaning that it will probably rival the transactions time seen in the xRapid pilot tests of 2 – 3 minutes earlier on in the year.

Stellar Acquiring Chain

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