XRP, Ripple’s digital currency, enables real-time global payments anywhere in the world. It is the third most prominent cryptocurrency in terms of market capitalization and has performed extremely well during 2017.
While Ripple belongs to the category of cryptocurrencies, its purpose is different from that of Bitcoin or Ethereum. While Bitcoin is a payment method and Ethereum is a multifunctional platform for decentralized SmartContracts, Ripple is a decentralized solution for banks and financial institutions that is fast (4 seconds) and scalable (1,000 transactions per second).
Ripple acts as both a cryptocurrency and a digital payment network for financial transactions. “Built for enterprise use, XRP offers banks and payment providers a reliable, on demand option to source liquidity for cross-border payments,” says the firm. (See also: Cryptocurrency Market Capitalization Rises Again)
The venture-backed startup provides global financial settlement solutions that reduce the total cost of settlement by enabling banks to transact directly and instantly, while ensuring certainty. It aims to "enable the world to exchange value like it already exchanges information – giving rise to an Internet of Value (IoV).”
Ripple owns the majority of XRP. Since its launch in 2012, Ripple has methodically bought XRP while ensuring its liquidity and overall market strength. However, in May 2017, the firm decided to set aside 55 billion XRP in a cryptographically-secured escrow account by the end of 2017 to alleviate any concerns regarding supply manipulations. “By securing the lion’s share of XRP, investors can mathematically verify the maximum supply of XRP that can enter the market,” according to Ripple. Total XRP held by Ripple is 6,662,260,753, XRP that is distributed is 38,332,289,584 and the total XRP placed in escrow is 55,000,000,000 (As of July 16, 2017).
The startup's recent Q2 report says, “Q2 2017 was one of the mo...