Review on XRP by francis fernandez
XRP: the complement of the conventional banking system
XRP is a digital currency issued in 2012 by the company Ripple Labs to be used within the Ripple platform.
The purpose of this project is to achieve the integration of banks and financial institutions to carry out transactions quickly and globally.
Its XRP coin has been widely accepted at the banking level; since the Ripple platform is considered to be an ideal complement to the banking system as we know it today.
What is the usefulness of XRP in the conventional banking system?
This platform facilitates the speed and effectiveness of transfers worldwide by serving as a conversion bridge for fiat currencies, gold, among others. Hence its vital utility in this sector.
Its main function is to serve as an intermediary for funds transfers between two parties (people and financial entities) anywhere in the world; either using both cryptocurrency and fiat money.
Another important feature of this platform is its character as a centralized currency; which makes it a regulated currency and subject to the provisions issued by its owners.
In this sense, currency regulators can block addresses, immobilize assets and carry out other actions when they deem it pertinent.
Pros
- It offers speed in international transactions of approximately 4 seconds, being faster than other platforms on the market.
- Allows low-cost transfers between two entities or users.
- Allows you to transfer both cryptocurrencies and fiat money.
Cons
- They cannot mine; since all the tokens have been issued.
- It is a centralized currency; which means that it is subject to regulations by its owners, such as immobilizing assets, blocking addresses, among others
- It is totally manipulable just like fiat money.
- Its centralized nature generates mistrust among its possible users.
