XRP, class 2012, is the third cryptocurrency listed on the market, right below Bitcoin and Ether.
It is the coin owned by Ripple, a fintech company whose main strength is the highly specialised infrastructure that meets the most diverse needs of institutions and corporations.
What is Ripple for?
Ripple’s strength and reliability are also due to its long-standing experience as a digital payment platform, in operation since 2004 under the name RipplePay.
Ripple services and products are now used by major companies such as UniCredit, UBS and Santander, also, more and more banks and payment networks are adopting Ripple because of the incredible speed of transactions, the stability of the technology and the opportunity to use a strong cryptocurrency such as XRP.
Ripple relies heavily on the concept of “Trust“, as demonstrated for example by the transaction validation system on Ripple’s blockchain. The validation, in fact, is entrusted to volunteers around the world, so it is not based on a compensation system, as happens for bitcoin mining, but on the pure trust of users and dedication of volunteers. The validation mechanism also has very low energy consumption.
Is Ripple centralised?
Ripple has often been criticised for holding most of its tokens and for the high control over its validators, which would make it a centralised system in the eyes of many. However, the company seems to be proving otherwise with the developments of recent years: first of all, the circulating tokens have increased by about 3 billion from December 2018 to the current date.
Another fact that shows the increasing level of decentralisation of Ripple is that, according to data from October 2019, only 7/34 registered validators are actually controlled by Ripple. The rest are autonomous or organised validators that are simply registered in Ripple’s list of validators who have proven reliable over time and who, however, remain autonomous from the company. This list is known as UNL, which stands for Unique Node List. All Ripple validators, even outside of this list, have limited voting power.