XRP explained: What is it and how it works

What is XRP? Well, XRP is a cryptocurrency that's been around since 2012. And it certainly seems to
have a lot going for it. It's used by a number of major banks and payment companies including Standard Chartered, Deloitte and the Royal Bank of Canada. But it's not been without controversy. It's been in trouble with regulators who believe it to be a security, something its creators deny. However, it's broadly
maintained its popularity. So, what makes it so popular? Well, XRP is best known for its use on the Ripple network. It was originally
launched to solve problems relating to payments, like slow settlement times and sending money overseas.

It's become so synonymous with Ripple that XRP and Ripple are
often used interchangeably. However, they are separate. Ripple is a real-time settlement platform that aims to revolutionize our archaic legacy payment systems. XRP is a digital asset built on the XRP blockchain and operates independently of Ripple. The Ripple network's
xRapid payment service simply uses XRP to facilitate transactions on the Ripple network. XRP essentially acts as the bridge between different fiat currencies being transferred on the Ripple network. It also acts as a source of liquidity for the network. So, how does it work? Well, XRP differs from other
popular cryptocurrencies in some key ways. First, it's not mined like
most other cryptocurrencies. A total of 100 billion
XRP tokens were pre-mined, of which 38 billion were made available to the public market. The remaining amount of XRP tokens are held by Ripple labs and they're periodically released.

The XRP Ledger also uses a unique consensus algorithm which uses a network
of validating servers, rather than proof of work or proof of stake. This enables faster transaction speeds. An XRP transaction confirmation takes an average of three to five seconds to complete, significantly faster than
other cryptocurrencies. So, what do you think? Are you sold on XRP? Let us know in the comments below. And don't forget to like, subscribe and as always.

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