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About XRP
Key Points
- Launched in 2012, XRP Ledger (XRPL) is an open-source, permissionless, and decentralized technology.
- Benefits: low-cost ($0.0002 to transact), speed (settling transactions in 3-5 seconds), scalability (1,500 transactions per second), and green attributes (carbon-neutral and energy-efficient).
- Founders: David Schwartz, Jed McCaleb, and Arthur Britto.
- XRP Ledger features: decentralized exchange (DEX), custom tokenization capabilities, and 70 million ledgers closed since 2012.
- Applications: payments, micropayments, DeFi, NFTs, and more.
About Ripple (XRP)
Unveiling XRP and the XRP Ledger: A Comprehensive Overview
Launched in 2021, the XRP Ledger (XRPL) is an open-source, permissionless, and decentralized technology that has been operational since 2012. The benefits of the XRP Ledger are multifaceted, boasting an ultra-low transaction cost of $0.0002, rapid settlement times of 3-5 seconds, and impressive scalability of 1,500 transactions per second. Furthermore, the XRP Ledger is inherently eco-friendly, being carbon-neutral and energy-efficient. Notably, it also features the world’s first decentralized exchange (DEX) and custom tokenization capabilities, which are seamlessly integrated into the protocol. With a proven track record of reliability, the XRP Ledger has successfully closed an impressive 70 million ledgers since its inception.
The Visionaries Behind the XRP Ledger: A Founding Story
In 2012, the visionary trio of David Schwartz, Jed McCaleb, and Arthur Britto pioneered the XRP Ledger, introducing its native cryptocurrency XRP as a swifter, more eco-friendly alternative to the Bitcoin blockchain. Later that year, alongside Chris Larsen, they co-founded the entity that would eventually evolve into the renowned Ripple.
Unveiling the Distinctive Characteristics of XRPL
The XRP Ledger offers a diverse range of applications and use cases, encompassing payments, micropayments, decentralized finance (DeFi), and, forthcoming, non-fungible tokens (NFTs). Since its deployment in 2012, the XRPL has empowered enterprises and developers proficient in Python, Java, and JavaScript, providing them with unparalleled utility and flexibility. On the XRP website, developers can access a plethora of tutorials, designed to facilitate a seamless onboarding experience, covering topics such as coding in various languages, building applications, and managing accounts, among others.
Beside its native cryptocurrency, XRP, the XRP Ledger serves as a platform for developers to craft innovative solutions, addressing inefficiencies in areas such as remittance and asset tokenization. Presently, the five primary use cases of the XRP Ledger encompass payments, tokenization, decentralized finance (DeFi), central bank digital currencies (CBDCs), and stablecoins.
The Circulating Supply of XRP: A Closer Look
The visionary architects of the XRP Ledger bestowed 80 billion XRP upon Ripple, empowering the company to craft innovative use cases, prominently featuring its global payments network, RippleNet, which leverages the digital asset.
The XRP Ledger Network’s Robust Security Mechanisms
Unlike Bitcoin or Ethereum, the XRPL employs a distinctive Federated Consensus mechanism to validate transactions. Through a consensus protocol, designated independent servers, known as validators, collaborate to establish a consensus on the order and outcome of XRP transactions. All servers within the network process each transaction in accordance with uniform rules, and any transaction adhering to the protocol is instantly confirmed. All transactions are publicly accessible and transparent, and anyone can operate a validator. Currently, the ledger boasts over 150 validators, operated by a diverse range of entities, including universities, exchanges, businesses, and individuals from around the world.
By leveraging the Federated Consensus mechanism, all verified transactions can be seamlessly processed in a decentralized manner, eliminating the risk of a single point of failure, as no individual participant possesses the authority to make unilateral decisions.
Where to Acquire XRP: A Comprehensive Guide
XRP is prominently listed on numerous centralized finance (CeFi) exchanges worldwide, notably including Binance, Huobi, and Bitstamp.
Delve into the intricacies of XRP by exploring our comprehensive project overview.
Ripple’s Ongoing Saga with the Securities and Exchange Commission
Since late 2020, Ripple Labs, the visionary minds behind the XRP token, has been embroiled in a protracted legal battle with the United States Securities and Exchange Commission. The pivotal question at the heart of this dispute is whether XRP constitutes a security.
On December 22, 2020, the Securities and Exchange Commission (SEC) initiated a lawsuit against Ripple Labs and two of its executives, alleging that they had unlawfully traded $1.3 billion worth of their XRP token as an unregistered security. The lawsuit has sparked intense debate, with proponents and detractors presenting compelling arguments. Notwithstanding, Ripple has vehemently contested the claims, asserting that the SEC’s assessment is tainted by bias.
The Securities and Exchange Commission (SEC) employs the “Howey test,” rooted in the landmark 1946 Supreme Court ruling on SEC v. W.J. Howey Co., to ascertain whether a cryptocurrency constitutes a security. An asset is deemed a security if it is sold with the expectation of generating profits from the efforts of other parties. According to the commission’s definition of XRP in its lawsuit, the cryptocurrency would satisfy the Howey test, thereby necessitating registration in accordance with SEC regulations, as all securities must be duly registered.
While most companies targeted by the SEC in a similar matter opted for a settlement, Ripple chose to take a stand. The outcome of this lawsuit is poised to have profound implications for the crypto space. If Ripple emerges victorious, the SEC’s credibility may take a hit, emboldening other crypto-based companies to challenge the status quo. Conversely, if the SEC secures a win, it could fundamentally alter the operational landscape for crypto firms, paving the way for a new era of stringent registration rules governing securities.