Review on XRP by JB CRYPTO
challenging the boundaries of trade
The crypto market presents us with an infinity of options in terms of digital currencies suitable for the development of secure electronic commerce.
Although cryptocurrencies have common qualities; there are always different characteristics that we should know.
XRP is a digital asset that, unlike most cryptocurrencies, does not use blockchain technology in its structure.
Instead, it uses the Ledger distributed technology platform (DLT) that combined with the RPCA (Ripple Protocol Consensus Algorithm) consensus protocol validates operations within the RippleNet chain in just 3 or 5 seconds.
The main function of XRP is to serve as an intermediary between banks and digital commerce to carry out cross-border digital asset transfers.
The most outstanding characteristics that the cryptocurrency has are:
• It is an open source protocol
• Allows fast conversions between fiat and digital money
• Serves for international asset transactions
• It is a centralized currency; this implies that its operation is controlled by its owners; being able to manage the performance of the cryptocurrency at your convenience.
This also applies to your nodes; which are under the manipulation of the banks and the Ripple Labs platform.
• It is not a mineable currency Trading with a centralized currency represents a significant disadvantage for many users; since it implies a risk not to have total control over our assets and to be at the mercy of the controls and conditions of the owners of the currency.
Although XRP can be a functional cryptocurrency for international transfers; its centralization makes it less attractive.
Pros
- Serves for payments outside our borders
- Their transactions are fast
- Allows linking different payment mechanisms
Cons
- It is a currency controlled by its owners
- It is an unmineable currency
