XRP, commonly referred to as Ripple, is a digital currency that operates on the Ripple network. It’s both a platform and a currency. The platform is an open-source protocol that allows for fast and low-cost transactions. XRP serves as the native cryptocurrency of this network, facilitating transactions between different fiat currencies seamlessly.
One of the key features of XRP is its speed and scalability. Transactions on the Ripple network are processed rapidly, usually within seconds, and the platform can handle a high volume of transactions simultaneously. This makes it attractive for financial institutions and payment providers looking for efficient cross-border payment solutions.
Cross-Border Payments
Ripple’s core technology, RippleNet, is designed to streamline international payments for financial institutions. It acts as a bridge between different currencies and ledgers, enabling faster settlement times and lower fees compared to traditional methods like SWIFT.
XRP as a Bridge Currency
XRP, the native token of Ripple, acts as a facilitator within RippleNet. When a bank transfers money through RippleNet, the sender’s currency is converted to XRP, then to the recipient’s currency. This eliminates the need for pre-funded accounts in different currencies, speeding up transactions.
