XRP in Klever

XRP also known as Ripple is a real-time gross settlement (RTGS) system, which is a specialist money transfer network, currency exchange and remittance network.

Developed as an alternative to cross-border remittance system, XRP is working with a focus on facilitating trustless, instant and cheap cross-border payments

XRP is designed as an alternative to Bitcoin, it relies on a public ledger, called XRP Ledger, for storing transaction details.  

As Bitcoin requires miners to validate the transactions, XRP payment network is built on the ledger that does not utilize mining to validate and record new transactions. Instead, the XRP Ledger requires trusted validator nodes to reach consensus in record time and maintain the transaction ledger roughly every 3 to 5 seconds. These trusted nodes are collectively called the Unique Node List or UNL.

As compared to proof-of-work consensus protocol of Bitcoin, the XRP Ledger utilizes a consensus mechanism based on the Federated Byzantine Agreement (FBA) model.

XRP was created by a US-based technology company, Ripple Labs Inc in 2012. It has now become one of the top 10 cryptocurrencies with over $52.2 billion market capitalization.

There is no mining activity in XRP, as it has already pre-mined a maximum supply of 100 billion coins, out of which 46.62 billion are under circulation.

Consensus model

XRP does not run with a proof-of-work (PoW) system or a proof-of-stake (PoS) system, it utilizes a consensus-based model. Once consensus is reached, the transaction is cleared. It can process 1,500 transactions per second, whereas Bitcoin can handle between three and six of these transactions and Ethereum can handle 15 of them in the same time frame. 

Each transaction done on the Ripple network destroys a tiny fraction of XRP (the average fee is .00001 XRP). This transaction cost is to prevent spam or denial-of-service attacks on the network. The charge is not paid to any party; the XRP is permanently destroyed. 

Since there is a set amount of XRP tokens in existence, the elimination of a tiny bit of XRP with each transaction makes XRP circulation decrease. Over a long period of time, the holders of XRP will benefit as this scarcity drives up the value of their tokens

XRP transactions use less energy than Bitcoin, are confirmed in seconds, and cost very little, whereas Bitcoin transactions use more energy, take longer to confirm, and include higher transaction costs.

Despite not being identical to the blockchain system, the XRP process is relatively efficient and speedy, making it a big reason banks and major payment processes are considering and exploring what it looks like to use Ripple.

So far Ripple has formed partnerships with over 300 banks and financial institutions spread across more than 40 countries. However, compared with the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a global cross-border settlement gateway founded in 1970 with over 11,000 members, XRP has a long way to go.

Where to buy XRP

You can buy XRP on Klever App, which offers a secured crypto wallet ecosystem serving more than 150,000 daily active users and over 3 million users worldwide.

Klever App is a simple, powerful, and secure self-custody crypto wallet, supporting the world’s major blockchains, offering 300+ trading pairs in Klever Swap and access to ETH and TRX-based dapps in Klever Browser, thereby contributing to the decentralized world of financial services. 

With over $1.25 quadrillion dollars transferred yearly across the globe as per US Treasury by SWIFT, XRP can provide an option with low-cost instant money transfer providing more money in the hands of people.

Use XRP to transfer money Kleverly!

Jagdish Kumar

Klever Writer

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