Although other blockchains have been inaugurated since Bitcoin’s arrival, it is still contemplated by many as the most developed and reliable system, handling a considerable number of dollar-value transactions. Bitcoin only allows seven to ten transactions per second, so it must catch up with traditional finance’s transaction capabilities to become part of everyday life for people worldwide. We know that Bitcoin has a scaling issue, but what exactly is causing the problem? Well, this limitation is largely due to the network’s block size and time. Newer blockchain networks have been specifically designed to achieve near-instant transaction speeds, which suggests they are more efficient.
XRP can outperform many established cryptocurrencies and traditional money transmitters. It is the native token of the XRP Ledger, a decentralized public blockchain that allows for faster, cheaper, and more reliable cross-border transactions. XRP is a bridge currency, facilitating transactions within the globally accessible network. Just a few days after the New York Department of Financial Services approved the USD-pegged stablecoin RLUSD, XRP experienced a 7% boost in value. XRP ranks as the fourth largest cryptocurrency, with XRP-related Google searches spiking as the ongoing battle between Ripple and the SEC ends.
The XRP Ledger Can Sustain 1000 Transactions Per Second
The XRP Ledger, launched in 2012 by Ripple, the company behind XRP, is fast, energy-efficient, and reliable. It was created by three Bitcoin developers, namely David Schwartz, Jed McCaleb, and Arthur Britto, who understood the advantages blockchain technology had to offer but sought something more efficient, scalable, and sustainable. The XRP Ledger can process roughly 1000 transactions per second, which are settled within seconds. The cost of transactions on the XRP network is negligible, which explains why XRP is gaining more attention in the cryptocurrency world. The default transaction fee is 0.00001 XRP.
The XRP Ledger uses a system referred to as Federated Byzantine Agreement, where a group of pre-selected nodes (validators or trusted entities) come together to achieve agreement within the decentralized network. Each transaction consumes 0.0079kWh, meaning XRP is more energy-efficient than, say, Bitcoin. XRP is pre-mined, so all the available coins were created before it was launched. Ripple’s long-standing decentralized exchange allows those interested to trade XRP and other cryptocurrencies with minimal fees. Prices could maintain an upward trend in the long term amid positive discussions, which can indicate growing interest and a bullish sentiment.
Can XRP Be The Next Bitcoin?
XRP was built to expand on the functionality of Bitcoin, which is cumbersome, slow, and expensive. Bitcoin transaction times can vary significantly, ranging from ten minutes to a day, but transactions are usually confirmed within an hour or so. XRP and the XRP Ledger run independently of Ripple, the American technology company that allows financial institutions, businesses, governments, and developers to drive economic growth. RippleX includes tools that interested parties can use for value-transfer-based use cases. It takes advantage of the XRP Ledger to guarantee simplicity and mainstream compatibility.
XRP has a total supply of 100 billion coins, created before the project went public, and most of it is held by Ripple to avoid runaway inflation, which means XRP maintains its intrinsic value over time. XRP can’t be locked up to earn rewards, and its ledger doesn’t natively support smart contracts, but the feature is set to go live in the upcoming months on the XRPL Ethereum Virtual Machine. XRP isn’t scarce enough to be considered an excellent long-term investment, but it’s a good short-term investment, so capitalize on the market volatility. XRP is slowly but surely becoming a solid alternative to Bitcoin, meaning it warrants deeper exploration.
The Ongoing Battle Between Ripple And The SEC Takes A New Turn
The Securities and Exchange Commission sued Ripple in 2020 for illegally selling XRP as an unregistered security to investors, sending shockwaves through the cryptocurrency sector. Federal Judge Analisa Torres made a controversial ruling on July 13, 2023, arguing that only institutional sales of XRP violated securities laws, whereas programmatic sales of XRP to retail investors didn’t. The Sec has filed an appeal in its case against Ripple, even if it doesn’t challenge the court’s decision. It must file its opening brief on January 15, 2025, and Gary Gensler will step down from the Commission on January 10, 2025.
Donald Trump’s reelection can be considered a victory for the cryptocurrency industry and will likely put some wind in the sails of the market. Trump recently named venture capitalist David Sacks as the White House Artificial Intelligence and Crypto Czar, so he will play the role of the lobbyist, persuading lawmakers, regulators, and other public officials to support or oppose certain policies. Sacks will cultivate innovation in the cryptocurrency industry in a way that best protects consumers. Ripple CEO Brad Garlinghouse says that the upcoming administration could decisively shape the global regulatory landscape.
What Will Happen To XRP In The Next Decade?
Out of the countless cryptocurrencies in existence, few have managed to capture public attention quite like XRP. Designed to handle a considerably higher transaction throughput compared to Bitcoin, XRP streamlines the transfer of funds globally with minimal fees and near-instant settlement times. Banks and payment providers like American Express Bank, J.P. Morgan, and PayPal use Ripple’s products to handle large volumes of cross-border payments. One day, XRP could fully replace SWIFT as the core system for international financial transfers, and if that happens, its price could rise tremendously.
As the cryptocurrency market expands its functionality to decentralized finance, non-fungible tokens, and the metaverse, Ripple’s deep, layered ecosystem will do the same thing. Much of XRP’s adoption and success depend on the outcome of the SEC’s lawsuit, which hinges on political factors. The incoming Trump administration could approach the industry with a lighter regulatory touch, but only time will tell. The Ripple community shows great enthusiasm and energy, and social media is filled with chatter about XRP’s future, so read up on the news and make a list of influencers to identify the most relevant information.
All things considered, while there are risks and uncertainties, the outlook for XRP seems positive.
Disclaimer:
CBD:
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The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
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Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
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