What Is XRP and How to Buy XRP?

In our commitment broadening our offerings continually, we are introducing a new project addition - XRP.

In this article, we will discuss what Ripple and XRP Ledger are, and dive into XRP Ledger's native token (XRP), its history and features, and XRP token value. We will end the article by providing concise guidance on how to buy XRP tokens.

What Is Ripple?

Ripple is a San Francisco-based technology company founded in 2012, initially known as OpenCoin, before rebranding to Ripple Labs, Inc. Ripple specializes in providing innovative financial payment solutions aimed at transforming global transactions. The company is renowned for its development of the RippleNet network, a blockchain-based technology that enables fast, secure, and low-cost international payments. RippleNet is used extensively by various banks, financial institutions, and payment service providers to enhance the efficiency of cross-border transactions.

What Is XRP Ledger (XRPL)?

The XRP Ledger (XRPL) is a decentralized cryptographic ledger powered by a network of peer-to-peer servers, formerly called the Ripple Consensus Ledger. XRPL is the underlying infrastructure that supports the digital currency, XRP, enabling it to facilitate fast and cost-effective global payments. The XRPL is transparent and offers benefits like low fees, high speed, and energy efficiency.

The ledger features the first decentralized exchange (DEX) and custom tokenization capabilities built into the protocol. Since its launch in 2012, the XRP Ledger has closed 70 million ledgers and offers a wide range of payment-related applications including micropayments, DeFi, and NFTs.

Developers use the XRP Ledger to create solutions that address inefficiencies, such as remittance and asset tokenization. The five main applications of the XRP Ledger are payments, tokenization, DeFi, CBDCs, and stablecoins. The XRP Ledger is used alongside its native coin, XRP, to facilitate quick conversion between different currencies.

What Is the XRP Token?

XRP is a digital asset or cryptocurrency used within the Ripple network. It serves as a medium for transacting value and acts as a bridge currency in transactions involving different currencies on the Ripple network. XRP enables efficient and fast cross-border payments, enabling money to be transferred between any two currencies irrespective of their location. XRP can also be used to make payments to merchants and service providers.

XRPL operates on an open-source and peer-to-peer decentralized platform, allowing for seamless transfers of money in any form, including fiat currencies and cryptocurrencies. Ripple's products utilize XRP to enable the speedy conversion between diverse currencies. By leveraging blockchain technology, XRP aims to revolutionize international payments and compete with established names like Western Union and Visa.

Unlike Bitcoin, XRP Ledger is not made up of a blockchain but a "hash tree." XRP cannot be mined because there is a limited number of coins: 100 billion. Ripple processes transactions using a consensus-based model that involves multiple nodes. This feature makes XRP Ledger process about 1500 transactions per second which is faster than Bitcoin TPS.

XRP Tokenomics

History of XRP (XRP)

XRP (XRP) was founded in 2012 by Chris Larsen and Jed McCaleb to create a decentralized payment system facilitating international transactions in a faster, cheaper, and more secure way than centralized payment systems.

The company was renamed OpenCoin in 2012 and, in 2013, was finally shortened to just “Ripple.” Ripple Labs raised $90M+ from investors and partnered with Bank of America, Santander, American Express, and other reputable financial institutions.

Ripple currently serves over 300 global financial institutions and continues to expand its global payments network. This includes RippleNet, a decentralized network facilitating seamless cross-border payments and innovative solutions bridging traditional finance and DeFi.

Despite regulatory challenges, Ripple's unique technology, growing partnerships, and focus on innovation position it to revolutionize how people make cross-border payments and transfer funds.

Features of XRP(XRP)

Ripple enables a decentralized alternative to conventional payment systems like SWIFT, Western Union, VISA, and MasterCard, reducing transaction fees significantly. Its adoption is driven by several features that make it appealing to users. Listed below are some of these features:

1. Speed: XRP transactions are completed incredibly fast, mainly due to Ripple's unique Ripple Consensus Protocol Algorithm. This system enables rapid consensus on transactions, usually within seconds. Such quick processing times, coupled with the ability to handle large volumes of transactions, make XRP highly attractive for widespread adoption.
2. Low Transaction Fees: The costs associated with XRP transactions are minimal compared to those of traditional blockchains. The Ripple ledger does not rely on mining—meaning there are no miners to reward for processing transactions. Instead, transactions are verified by a network of servers. These servers aren't compensated directly by the network but benefit from lowered processing costs and "reserve requirements." As a result, transaction fees are typically less than a cent.
3. Scalability: XRP can handle thousands of transactions per second and can be scaled up further to meet growing demand. This capability makes it a practical solution for major financial institutions that need to process large quantities of transactions swiftly.
4. Security: XRP is designed with a high focus on security, integral to its network. The Ripple Consensus Protocol ensures rigorous security, and the network has maintained a strong track record with no reported breaches or hacks. This robust security framework effectively wards off potential threats, ensuring user and institutional assets are safeguarded.
5. Open Network Participation: XRP operates on the Ripple network. Anyone can join the Ripple network, contributing to its development and governance. This open participation enhances the transparency, trust, and accountability of the system, as it allows anyone to verify the network's security and operational integrity. This adds a layer of community-driven oversight that is valued in the cryptocurrency space.

XRP Token Value

As of May 22, 2023, the value of XRP is US$0.462. XRP is given value by its utility. XRP is utilized as a currency for fast payments with very low transaction fees. XRP is also utilized by financial institutions for payment settlements. The growing need for international transactions may result in an increased demand for XRP.

Below are some of the factors that give XRP value:

1. Utility: XRP is a cryptocurrency that has a real-world use case. It is employed to enable decentralized international transactions.
2. Scarcity: XRP tokens have a limited supply, which is deflationary. The total supply of XRP tokens ever in circulation is limited to 100 billion.
3. Demand: As more people and businesses adopt XRP cryptocurrency for decentralized international payments, the demand for XRP is likely to increase thus surging its value.
4. Liquidity: XRP is a liquid asset. It is traded in a lot of centralized and decentralized cryptocurrency exchanges. 
5. Security: The XRP Ledger is a secure blockchain. It has never been hacked and has a strong track record of uptime.

How to Buy XRP Tokens?

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including XRP, users can now trade easily and seamlessly. To purchase XRP tokens on CoinEx, follow the steps below.

1. To access CoinEx's services, register for an account by clicking "Register". Existing users can log in.
2. After logging in, deposit funds into your CoinEx account using one of the supported cryptocurrencies or deposit methods supported by the exchange.
3. To buy XRP, deposit your supported currency or cryptocurrency, go to the XRP trading page, select a suitable trading pair, and specify the desired amount of XRP tokens for trading.
4. After locating the XRP trading pair, select the relevant pair, specify the desired quantity of XRP, and trade the paired token for XRP.