This week’s crypto profile looks at another popular altcoin available on the Wirex app: XRP.
There’s often some confusion when it comes to the name of this token - is XRP the same thing as Ripple? Which one is the coin?
To put it simply, RippleNet - which is named after the company that runs it, Ripple - is a payment network enabling the seamless transfer of any currency, fiat or digital.
XRP, on the other hand, is a cryptocurrency built on the XRP Ledger. Ripple markets XRP as the fastest, most cost-efficient digital asset for global payments.
Now we’re clear on the terminology, let’s dive a bit deeper into the company and the coin and see what they set out to achieve.
Founded in 2012, Ripple made it their mission to realise the vision of the IoV, or the Internet of Value. The IoV describes the idea of using the internet for the instant exchange of money, rather than information, without any middlemen. With this in mind, Ripple began developing technology which would lower both the time and cost involved in making international payment transactions.
RippleNet is a decentralised, global network of banks and financial institutions that uses a real-time gross settlement system (RTGS), known as xCurrent, to facilitate instant cross-border transactions and communication amongst one another.
In addition to this technology, XRP - currently the third-largest coin by market cap - was created as a digital currency which could be used within the Ripple network, or elsewhere.
So, what makes XRP stand out as a cryptocurrency? Firstly, there are only 100 billion pre-mined XRP tokens in existence - Ripple owns 60 billion of them and the rest are traded freely. The coin wasn’t designed to make payments, but to represent the transfer of value - it acts as a mediator which can move any currency from point A to point B more efficiently. XRP is often described as a ‘bridge currency,’ making it easy for any currency to be exchanged for another.
Despite gaining widespread popularity in the crypto sphere, the Ripple payment system has received criticism for the role banks play in it - whereas early tokens such as Bitcoin set out to eliminate them altogether, RippleNet offers them a platform and essentially aims to assist them.
But this clearly isn’t enough to hold Ripple back - even the Bank of America reportedly piloted the technology in recent times. And while XRP may be a particularly divisive altcoin, it has consistently held its spot in third place after BTC and ETH since its inception.
Since the spotlight is on XRP this week, we’ve decided to throw a little competition on our Twitter and Instagram channels! All you have to do is go to our latest posts on Twitter and Instagram to see the full details on how to enter.* That’s it. We will be awarding 4 lucky winners with 100 XRP each into their Wirex XRP account.
1. For full entry details, entrants must check the associated Twitter and Instagram posts.
2. The competition closes on (21.06.2020 11:59PM BST).
3. Winners must be a verified user with an activated Wirex XRP account.
4. Four winners total will be chosen across Twitter and Instagram.
5. Winner will have 100 XRP funded into their Wirex XRP account.
6. We will announce the winners on our community forum in this post on 22.06.2020.
7. Once the winner is contacted, the winner will have to provide the requested details within 48 hours to claim their prize. Otherwise it will be forfeited and another winner will be chosen.
8. We will award the XRP to the winner once they have been contacted in approximately 7-10 working days time.
9. This promotion is in no way sponsored, endorsed, administered by, or associated with, Instagram or Twitter.