KG - 12 Dec. 2017
In this article, I cover the following:
- What is Ripple and how does it work?
- What is XRP?
- Why have Ripple and XRP been in the news so much lately?
- Why do we need Ripple?
- Should XRP be added to Coinbase and why?
As you may already know, Ripple's XRP has been receiving a lot of attention lately due to it's rapid increase in value. But, what exactly is Ripple and how does it work?
Ripple is the company that provides a payment network for Banks. The network is known as RipplenNet. RippleNet is a decentralized global network of banks and payment providers using Ripple’s distributed financial technology, which provides real-time messaging, clearing and settlement of financial transactions (Ripple.com). Transactions are settled in mere seconds on its blockchain. Ripple's native currency is called XRP and it can be traded across cryptocurrency exchanges. There are 3 really good benefits to using the RippleNet:
xCurrent - Ripple enables banks to process payments in real-time, using a technology called xCurrent. xCurrent allows banks to settle transactions very quickly, transparently, and efficiently.
xRapid - xRapid enables banks and payment providers to source liquidity on an on-demand basis in currencies required by the destination source.
xVia - xVia allows banks and payment providers to send payments globally using rich data attachments.
All transactions can now be sent very quickly and there is no need to wait several days for transactions to clear when being sent from one location to another and this provides more efficiently and saves costs.
Ripple and XRP have been in the news a lot lately due to the sudden rise in XRP's value. XRP was not worth much more than a few cents several months ago but it has recently risen to a value of approximately $0.71. This is largely due to the addition of many banks and customers to the RippleNet as it becomes more popular.
So why do we need Ripple? Because it saves tons of time due to its rapid speed of settling transactions. This provides a win-win situation for all parties involved in any transaction on the RippleNet.
XRP can currently be purchased and traded over some cryptocurrency exchanges but it is not as readily available as many cryptocurrency enthusiasts would like it to be. At the time of this writing, it is currently number 5 on the World Coin Index (worlcoinindex.com) and many people would like to see it added to Coinbase due to its increase in popularity. Coinbase is one of the most used secure cryptocurrency platforms. The Coinbase platform allows users to purchase, transfer, sell and store BTC (Bitcoin), LTC (Litecoin) , and ETH (Ethereum). XRP fans would like to see it added to Coinbase because it would become easier to acquire while adding even more value to the Coinbase platform, which is currently home to more than 13 million users. XRP could be purchased immediately in Coinbase then transferred quickly to other platforms for trading. XRP could also possibly be used to help with fees when transferring currency as well. Since Coinbase is the gateway exchange for many people who buy cryptocurrencies, it would be nice to see XRP available on the Coinbase exchange as well. It would really make a lot of people very happy. There is currently a petition circulating on the internet to add XRP to Coinbase but users can always send an email to Coinbase support if interested in requesting that XRP be added to the platform. Hopefully we'll see XRP available on Coinbase sometime in the near. future.