XRP

1. What is XRP?

XRP is a cryptocurrency intended to facilitate low-cost, and fast cross-border payments. Launched in 2012, XRP is one of the oldest and largest cryptocurrencies by market capitalization. The token lives at the center of the XRP Ledger, a permissionless blockchain built by Ripple Labs.

2. How does XRP work?

XRP operates on the XRP Ledger, a permissionless blockchain. The network uses a unique consensus mechanism called the Ripple Protocol Consensus Algorithm (RPCA), which allows for faster transaction times and lower fees. Financial institutions are the main adopters of XRP, using it as a bridge currency to facilitate cross-border payments.

3. Should you use XRP?

The token is touted as one of the fastest and cheapest payment options in the cryptocurrency space. For users who are looking to avoid the high fees associated with networks like Bitcoin, Ethereum, or the traditional banking system, XRP could be a good choice.

4. What are the risks of using XRP?

The company backing XRP, Ripple, has been embroiled in a number of legal challenges with authorities in the U.S., which could affect its future token price, and utility. XRP’s value is also subject to market volatility, which could prove risky for investors. Critics of XRP have also pointed out that Ripple Labs holds a large amount of tokens and influence in the network, which could lead to centralization issues.

5. What are the benefits of using XRP?

Users transacting on the XRP Ledger report settlement times between 3-5 seconds, with costs that usually fall below one cent. The XRP Ledger can process up to 1,500 transactions per second. Additionally, some of the largest financial institutions have begun accepting XRP.

6. Who Created XRP?

XRP was created by David Schwartz, Jed McCaleb, and Arthur Britto, and it was launched by Ripple Labs Inc., which was co-founded by Chris Larsen and Jed McCaleb.

7. How many XRP tokens will there ever be?

The total supply of XRP tokens is 100 billion.

8. What is XRP’s lowest and highest price tag?

XRP hit an all-time low of $0.002 on May 22, 2014. It reached an all-time high of $3.40 on Jan. 7, 2018.