With the advent of Internet, our world underwent an astonishing transformation. And, over the years, the real world began losing its popularity to the virtual world, so much so, that today, after all these years, the virtual world is regarded as significant, far more than the real world. Confusing, isn’t it?
It has taken time, but humans, today, almost dwell in the virtual world as it has taken over every aspect of our life. Everything around us is electronic, or digital—be it entertainment, information or finances, like ecash(electronic money) or Digicash (digital money), which was introduced way back in 1983.
Today, however, we have the cryptocurrency–a digital asset—that works as a medium of exchange that uses cryptographic systems to secure financial transactions. So, it makes sense to buy xrp as the future of cashless transactions. But, what is this xrp?
What is xrp?
Cryptocurrency is the digital currency, or virtual currency, that uses decentralized controls as opposed to centralized banking. XRP is a cryptocurrency that has a worldwide reach today and is used by most of the people, who buy xrp as it helps avoid longer transactions and high rate of fees. It has been a mystery since the time it was introduced and is slowly gaining popularity. However, the truth remains that not everybody is aware of it.
XRP – the cryptocurrency—is used as a token on Ripple to facilitate the transfer of money between different currencies. Ripple operates on peer-to-peer decentralized platforms that enables a smooth transfer of money in any form—be it the US Dollar or the Yen. It was introduced to enable instant global transactions at low costs.
A 100 billion XRP were created at the origination of Ripple, but it is an asset with decreasing available supply. The Ripple network does not need its users to buy xrp as a medium of exchange, but each Ripple account is required to have a reserve of 20 XRP. Within the network’s currency exchange, XRP is freely traded between two currencies and its market value varies against dollars, yens etcetera.
XRP was planned as a bridge currency for financial institutions to enable fast, cross-border payments without needing any middlemen or any fees that such transactions are usually associated with.
Conclusion
XRP is, indeed, an interesting token that has the potential to change the face of inter-bank transactions. There are quite a few crypto currencies trying to disorganize the way money is circulated. However, as it has not gained that huge a popularity, it is a matter of time when the effects of this technology will be approved and utilized on a larger scale.
In fact, it has been predicted that, slowly and steadily, there will come a time when our world will be a cashless society, where transactions will be done using digital currency and also that there will be an increased use of the crypto currency in every sector.