Ripple (XRP) Guide: Live XRP Price and 2020 Coin Updates

Current XRP Price: Real-Time Ripple Coin USD Exchange Rate Value

Ripple stands as one of the largest corporations in the cryptocurrency landscape, and their XRP token is the asset you often criticize.

Managed by Ripple Labs (initially known as Opencoin), Ripple operates as both a platform and a currency. It consists of a payment protocol devoid of blockchain, specifically crafted as a daily low-fee exchange network utilizing the unique patented technology known as the Ripple protocol consensus algorithm (RPCA). The Ripple payment protocol aspires to be embraced and integrated within contemporary banking institutions to facilitate swift international transactions globally by offering a seamless cross-border remittance service aimed at facilitating money transfers across the globe.

From its founders Chris Larsen and Jed McCaleb to the present CEO Brad Garlinghouse, this examination of Ripple and its XRP cryptocurrency will provide an in-depth analysis of how the highly sought-after XRP coin (currently holding the #3 position in overall market cap) is utilized to symbolize and convey value on the Ripple Network.

As the user community of Ripple (XRP) expands alongside optimistic price forecasts, let’s explore ‘the alternative cryptocurrency’.

What is Ripple and How XRP Functions

At its core, Ripple can be envisioned as a real-time gross settlement system, which, alongside its associated cryptocurrency ‘XRP’, has been crafted to make financial transactions more efficient and stress-free for its users. The initiative was initiated in 2012 to deliver the global financial community a comprehensive payment processing and remittance framework that could cater to a variety of entities including:

300 financial/banking institutions (across 40 nations and 6 continents)
Startups
Entrepreneurs
Consumers

According to the project’s whitepaper, Ripple aims to replace the global payment infrastructure prevalent today with a system that is not only ‘decentralized’ but also open-source driven and accessible to everyone, regardless of their financial status. Furthermore, leveraging its native token creation system, the platform permits users to create their own cryptocurrencies and fiat currencies. Consequently, due to these characteristics, Ripple has been embraced by numerous banking and financial institutions thanks to its RippleNet’s attributes of being instantaneous, dependable, and economically viable.

As the Ripple and XRP advancements proceed, the advantages of RippleNet in terms of speed, reliability, liquidity management, and transparency have placed both the organization and cryptocurrency in a remarkable position, considering the multitude of crypto-assets available in today’s market.

Examining Ripple’s Origins: The Who, What and When

Before delving into the impressive Ripple repertoire of partners such as American Express, MoneyGram, Santander, PNC, SBI Remit, and BeeTech, or acknowledging that XRP operates across over 100 markets and exchanges, let’s revisit the inception and explore some of the organic beginnings of the firm and its token.

As some of our dedicated readers might already know, the Ripple initiative commenced back in 2004 when developers Jed McCaleb, Arthur Britto, and David Schwartz were inspired by a decentralized payment system known as RipplePay.com, created by a Canadian web developer named Ryan Fugger. However, McCaleb’s vision aimed to incorporate blockchain technology to enhance the described system’s transparency and to resolve numerous inefficiencies linked to the Bitcoin ecosystem (such as high power consumption, sluggish transaction speeds, and centralization) – (which would eventually evolve into Stellar Lumens (XLM)).

In this context, it’s important to point out that unlike Bitcoin, every transaction based on XRP is validatedthrough the implementation of a community-wide consensus ballot rather than having users depend on miners to authorize their transactions.

In 2012, Ripple’s primary development team welcomed Chris Larsen, who subsequently asked Fugger to grant his team the necessary authorization to continue working on RipplePay.com and evolve the platform into a comprehensive cryptocurrency and monetary system. These advancements contributed to the establishment of OpenCoin — an entity that would later be renamed Ripple Labs.

During this period, Larsen and his associates also began to dedicate significant effort towards the formulation of what we currently recognize as the Ripple Transaction Protocol (RTO), a mechanism enabling users to perform instant transfers regardless of their geographical positions. More specifically, the protocol is compatible with various digital currencies as well as other asset types. The team designed the RTP’s core structure in such a manner that it depended solely on a central ledger maintained by multiple servers continually for the purpose of transaction validation.

Furthermore, to enhance the speed of individual transaction processing, the Ripple team created a cryptocurrency known as XRP, intended to aid users in transferring their funds in an exceptionally efficient manner. If that wasn’t sufficient, Ripple also connected Bitcoin to its native environment, enabling crypto enthusiasts to utilize the platform for sending payments straight into any BTC wallet they desire.

All of this would essentially evolve into the present-day RippleNet, which represents Ripple’s global payments infrastructure. Here’s how it functions:

In the first half of 2013, Ripple Labs declared the launch of its platform’s reference server and client as open-source software, thereby permitting independent developers to play a role in Ripple’s secured future advancement. Additionally, by the start of 2014, Ripple’s core development team had already begun to redirect its attention towards the banking industry, aiming to replace the outdated systems that many banks continue to utilize to execute their daily transactions. In this context, just a few months later, Munich-based Fidor Bank became the inaugural mainstream financial institution to adopt the Ripple Transaction Protocol (RTP). This announcement was quickly followed by reports that New Jersey-based Cross River Bank and Kansas-based CBW Bank had also embraced the protocol.

By late 2014, Ripple, which aspires to become the most reliable global payments network, had disclosed several noteworthy partnerships with major players such as Western Union, the Commonwealth Bank of Australia, the Royal Bank of Canada, and Earthport, a global payment service allied with firms like Bank of America and HSBC. Nevertheless, in the following year, Ripple Labs faced a total fine of $700,000 from the Financial Crimes Enforcement Network (FinCEN) because of specific infractions regarding the Bank Secrecy Act. In light of the penalty, the Ripple team promptly moved to integrate various AML monitoring modules into their protocol to ensure full compliance with existing U.S. financial regulations.

Over the past 2-3 years, Ripple Labs has experienced significant growth, with the organization’s offices now located in several different countries such as Australia, the United Kingdom, and Luxembourg.

Here is a visually curated representation of all of the Ripple Labs investors from 2013 to 2016:

Key Points Worth Bearing in Mind

In discussions about the Ripple ecosystem, native transactions are exclusively conducted when users perform cryptographically verified transactions using XRP or a specific fiat currency of their choice. In this context, it is crucial to highlight that all XRP digital asset transactions are tracked utilizing Ripple’s internal ledger system, the XRP Ledger.

XRP is an open-source, decentralized digital asset tailored for payments ~ official Ripple.com website

Since the implementation of Ripple’s cross-border transaction framework by numerous banks globally, an increasing number of individuals have started to perceive crypto-enabled technologies with a more favorable perspective.

Due to Ripple’s continual adoption across a broad spectrum of traditional financial sectors, a multitude of investors and traders are beginning to place their trust in the platform. And while discussing notable topics of interest within the Ripple ecosystem, let’s insert this statement as it is a significant macro-discussion point regarding the Ripple vs XRP debate which we will delve into below.

Ripple and Mining

In contrast to other well-known cryptocurrencies such as Bitcoin, Ethereum, and Monero, XRP cannot undergo mining. This is due to the fact that while BTC and similar digital assets utilize miners to process their native transactions, transfers related to Ripple are carried out through the use of a system-wide user consensus framework (thus rendering the concept of mining obsolete).

Moreover, it should be noted that upon its creation, Ripple’s primary design team issued a total of 100,000,000,000 XRP — a quantity that has remained constant since, despite ongoing complaints from the community regarding this matter. Additionally, it should be mentioned that following the release of XRP, several individuals criticized how the currency was allocated, with the founders retaining 20 percent of all XRP tokens.

Finally, due to its “zero mining capability,” several crypto advocates have labeled the digital currency as being overly centralized. Furthermore, this characteristic has also restricted the overall utilization and expansion of the project in various respects.

What Distinguishes XRP from Other Premier Cryptocurrencies?

Differing from Bitcoin, Ripple is supported by a comprehensive financial ecosystem that can be leveraged for a multitude of applications. Likewise, when evaluated against Ethereum (which is primarily built for computational tasks), Ripple focuses solely on financial operations such as remittances and international transactions. This is precisely why Ethereum, EOS, and Bitcoin have not been embraced by banking institutions — as they are devoid of the essential framework required to manage large financial transfers.

What is the Ripple Transaction Protocol and who governs it?

The Ripple Transaction Protocol (RTP) is a digital framework within which all monetary activities of Ripple are executed. This stands in sharp contrast to other cryptocurrencies that utilize a blockchain consensus mechanism to facilitate their transactions.

While we are discussing this topic, it is important for our audience to recognize that all transactions occurring within the Ripple network necessitate a certain degree of pre-established trust to move forward. This implies that if two parties have not created a trust relationship beforehand, the transaction will be stalled until a definitive route involving all relevant entities is arranged. This concept is derived from Islamic banking tenets where financial exchanges are conducted based on mutual trust rather than charging the other party interest rates.

Now, regarding who governs Ripple, a brief examination of the project’s foundational structure shows that it is significantly more centralized compared to many other cryptocurrencies. This is due to Ripple Labs retaining a prominent role in the development of XRP, as well as holding a substantial share of all XRP currently in circulation.

XRP: A Comprehensive Analysis of Ripple’s Cryptocurrency

Essentially, XRP can be regarded as the cryptocurrency that energizes the Ripple ecosystem. In this respect, it can be compared to Ether’s relationship with the Ethereum platform.

Concerning XRP’s valuation, the price of the currency is dictated by how many individuals (at any given moment) deem the asset valuable. Furthermore, owing to Ripple’s remarkable functionality as a financial service platform, numerous established banks have begun to implement the technology to improve their transaction efficiency overall. This has contributed to an increase in XRP’s price and has provided it with a market stature that is enjoyed by very few other digital assets.

As previously noted, when Ripple was first introduced, the core development team generated a total of 100,000,000,000 XRP intended for transaction-related purposes. Additionally, in contrast to other cryptocurrencies, XRP cannot be mined, although its overall supply can be augmented — however, there are currently no intentions to undertake such an action in the near future.

From an acquisition viewpoint, similar to the majority of other cryptocurrencies available today, XRP can also be bought from a variety of exchanges and trading platforms with ease. Likewise, storing XRP is quite simple and can be accomplished using several different wallet solutions.

What Benefits Does Ripple Provide?

Mainstream Acceptance: Ripple is presently supported by a wide range of well-known financial institutions and payment providers, such as HSBC, Western Union, CBA, and the Royal Bank of Canada. This positions Ripple in a distinctive spot of mainstream endorsement that few other digital currencies can claim.

Regulatory Approval and Adaptability: From the outset, Ripple has emphasized the necessity of establishing its core framework in alignment with the regulatory standards set by diverse financial authorities worldwide. To better grasp this situation, we note that Ripple can be employed to create customized tokens while XRP can be exchanged against various digital commodities like frequent flyer points, phone minutes, etc.

Minimal Transaction Costs: In comparison to several of its comparable crypto offerings, Ripple possesses several niche advantages (such as low transaction fees, payment flexibility, and global accessibility) that render it distinctive. Additionally, XRP is among the swiftest digital assets available in today’s market (which is also why it has been adopted by numerous banking institutions.)

The Disadvantages of XRP

Limited Supply: One of Ripple’s major challenges is its limited supply — currently capped at 100,000,000,000. Despite the project’s supporting community frequently calling for an increase in the currency’s supply, Ripple’s development team has persistently declined to generate additional XRP — contributing to a variety of deflationary/supply-related issues within the project.

Centralization: As previously indicated, an astonishing 20% of XRP’s total supply is held by Ripple’s founders. Moreover, XRP cannot be mined, a characteristic viewed as one of the significant downsides of this leading asset.

Historical Issues: Ripple Labs has encountered legal challenges from regulatory bodies like FINCEN in the past. For instance, in 2015, the government agency imposed a fine of $700,000 on Ripple Labs for infringing upon the Bank Secrecy Act. Similarly, last year, Ripple faced a lawsuit alleging fraud related to an ICO scheme.

Lack of Openness: A considerable concern with Ripple is that XRP transactions can be frozen within the system. An instance occurred a few years ago when co-founder Jed McCaleb attempted to liquidate $1 million worth of his XRP holdings — an action that was impeded by an external entity. This incident not only tarnished the overall perception of XRP within the global crypto community but also led to many arguing that having a third party inhibit a transaction contradicts the fundamental principles of what blockchain technology and cryptocurrency represent.

How Does Ripple Function?

With Ripple’s far-reaching appeal continuing to rise, an increasing number of organizations are starting to utilize XRP as an intermediary in their fiat currency conversions. This is due to the fact that a multitude of diverse financial assets cannot be exchanged for one another directly. Instead, they require trading through the US dollar — which acts as a swapping facilitator. In this context, Ripple performs the same role, but at a significantly reduced processing expense compared to a USD-based transaction.

Moreover, as noted in a previous section, numerous global banks are now adopting Ripple to enhance the efficiency of their cross-border dealings. To expand on this, Ripple presently showcases a TPS rate of four seconds per transaction. This number is not only considerably higher in comparison to other analogous digital currencies but is also significantly quicker when juxtaposed with the transaction capacity of several traditional banking systems.

Ultimately, Ripple’s ecosystem has been structured in a manner that enables users to create their own custom tokens, which are supported by XRP.

Safety: Is using XRP truly Secure?

Right from the start, it’s essential to clarify that any financial system depending on a computer or another digital medium can never be completely secure. Nevertheless, when it comes to Ripple, the technology employs a variety of protocols that enhance its security — to the extent that numerous banks have opted to abandon their native transaction systems in favor of Ripple’s blockchain transaction platform.

Additionally, it has been clear to the international crypto community from the outset that Ripple is primarily crafted to operate within the boundaries of present-day financial regulations — essentially meaning that the platform abides by the same rules that traditional banks and payment service providers are obligated to follow.

Finally, over the last 4-5 years, several digital currency fans have criticized Ripple for being excessively centralized. This has sparked a wave of concerns that the initiative might actually be nothing more than a sophisticated Ponzi scheme or fraud. However, since Ripple has complied with various mainstream financial regulations from its inception, this narrative has struggled to gain any substantial traction.

Ripple vs Bitcoin

A common inquiry among novice crypto investors and technology aficionados is, “If Ripple is significantly more advanced than BTC, why is its usage still relatively confined compared to the leading cryptocurrency?”. The straightforward explanation is that Bitcoin and XRP fulfill entirely distinct roles. For instance, BTC is intended to act as a store of value that can also facilitate financial transactions. Conversely, Ripple operates more as an integrated financial services platform that makes transactions quicker, more efficient, and secure for its users. That said, Bitcoin’s straightforwardness is what attracts many investors to it over other prominent digital assets like ETH, EOS, ADA, and XRP.

From an adoption perspective, Ripple encounters considerable challenges as numerous vendors still prefer BTC due to its market reputation and general ease of utilization.

Currently, the count of merchants accepting BTC far exceeds those utilizing XRP.

How is XRP as an Investment Vehicle?

While many individuals persist in accumulating BTC and ETH, believing these assets will continue to appreciate in value as we progress into the future, the question of whether XRP can be similarly utilized is also gaining considerable interest in recent times.

Although XRP does not assure any returns, the fact that its parent platform (Ripple) is experiencing growing acceptance among a wide range of mainstream financial organizations places the currency in a distinctive profitability position compared to other cryptocurrencies.

Additionally, thanks to the comprehensive versatility of the Ripple network, an increasing number of companies are discovering innovative ways to utilize the technology. This has propelled XRP into the status of one of the world’s most traded cryptocurrencies.

Current Ripple Company Partnerships

In this segment, we will explore a detailed inventory of all the financial entities currently involved in RippleNET — a diverse network composed of central/private banks, remittance firms, brokerage houses, and payment providers using one or more of Ripple’s remittance solutions (i.e., xRapid, xCurrent, and xVia). These platforms have undergone extensive testing, and many independent researchers have determined that they are visibly superior to the SWIFT protocol regarding:

Transaction durations
Processing charges
Certainty in transaction execution

For those readers who might not be familiar with SWIFT, it can be understood as a messaging network currently employed by a broad spectrum of banks/financial institutions to transmit and receive information (alongside funds) amongst themselves.

Moreover, it is worth noting that all entities presently within RippleNET can utilize the network to conduct their international transactions in an exceptionally streamlined manner.

In terms of some banks currently leveraging Ripple’s various cross-border services, notable names include Standard Chartered, RBC, SBI, Axis, and RakBank of UAE. Additionally, several corporate giants (such as Accenture, Deloitte, Santander, UBS, and UniCredit) are likewise utilizing Ripple’s framework to ensure their internal transactions run smoother and more efficiently.

Below is a comprehensive list of all the banks that have entered into a partnership or agreement with Ripple:

(i) North America and Canada:

American Express
Standard Chartered
Bank of America Merrill Lynch
PNC Financial Services
Cuallix
Catalyst Corporate Federal Credit Union
Star One Credit Union
CBW Bank
Cross River Bank
Royal Bank of Canada
DH Corporation
Canadian Imperial Bank of Commerce
Scotiabank
Bank of Montreal
ATB Financial
TD Bank Canada
Saldo

(ii) The United Kingdom, Spain, France, Germany, and other smaller European countries:

Interbank
Euro Exim Bank
Bank of England (Central bank)
HSBC
Barclays
Vitesse
Royal Bank of Scotland
Credit Agricole
Natixis
Banco Santander
BBVA
Banca Intesa Sanpaolo
UniCredit
Reise Bank
Fidor Bank
Rabobank
Erste Group AG
UBS
Credit Suisse
Nordea
Skandinaviska Enskilda Banken AB
Akbank

(iii) Middle East — Israel, Kuwait, Lebanon, Saudi Arabia,

Bank Leumi Le-Israel
National Bank of Kuwait
Kuwait Finance House
Bank Dhofar
Saudi Arabian Monetary Authority (Central bank)
First Bank of Abu Dhabi
RakBank
Al Rajhi Bank

(iv) Asia — Singapore, Thailand, Vietnam, India, Indonesia, Japan, and S.Korea

DBS Group
OCBC Bank
United Overseas Bank
Singapore Exchange
Krungsri
Bank of Thailand (Central bank)
Bank of Indonesia (Central bank)
Siam Commercial Bank
Cargills Bank
Kotak Mahindra Bank
IndusInd Bank
Axis Bank
Yes Bank
Faysal Bank
Shanghai Huarui Bank
Woori Bank
SBI Holdings
Mitsubishi UFJ Financial Group
Fukui Bank
Star Bank
Aomori Bank
Ashikaga Bank
Awa Bank
AEON Bank
Senshu Ikeda Bank
Iyo Bank
Oita Bank
Orix Bank
Gumma Bank
Keiyo Bank
San-In Godo Bank
Sikoku Bank
77 Bank
Shimizu Bank
Juroku Bank
Shinkin Central Bank
Shinsei Bank
Hachijuni Bank
Bank of Yokohama
SBI Sumishin Net Bank

(v) Australia and New Zealand

ANZ
Westpac
Commonwealth Bank of Australia
Macquarie Group
National Australia Bank

Having compiled a substantial list of banks currently utilizing RippleNET, let us examine several prominent payment/remittance providers that have also migrated their existing frameworks onto one of Ripple’s cross-border payment ecosystems. Notable names include:

American Express FX International Payments
InstaRem
SendFriend
Beetech
Viamericas
Transpaygo
UniPAY
MoneyGram
Zip Remit
Itau Unibanco
Western Union
UAE Exchange
TransferGo
SBI Remit
FlashFX
Earthport
Mercury FX
Cambridge Global Payments
Finastra
Davis + Henderson (D+H)
Finablr
LianLian Pay
IDT
GoLance
AirWallex
Dlocal
TAS Group

Ripple: A Concise Timeline of the XRP Coin

2011 — The Beginnings

Although not much is understood about how Arthur Britto, Jed McCaleb, and David Schwartz found each other, it is a well-recorded fact that the aforementioned individuals encountered each other sometime in the spring of 2011. Throughout the year, this small team persisted in developing XRP’s fundamental ledger framework.

2012 (August) — Larsen joins the team

In August 2012, McCaleb, Britto, and Schwartz are joined by a notable developer and blockchain advocate named Chris Larsen, who had previously played a role in various successful fintech initiatives such as E-Loan and Prosper.

2012 (October) — Fugger grants permission

A few months after Larsen becomes part of Ripple (which was not known by that name at that time), the group approaches Ryan Fugger — the originator of the original RipplePay website launched in 2004 — to further the development of his creation. Fugger consents to support the new venture, thereby kicking off the establishment of a new company called OpenCoin.

2013 (February) — Marketing begins

In the latter part of February 2013, OpenCoin initiates its marketing on Bitcointalk.org (a well-known crypto platform). The promotional campaign runs for several months, with the terms of engagement being quite straightforward — every new registration receives 1,000 XRP.

2013 (March – May) — Funding and expansion

Throughout the initial half of 2013, Ripple keeps making significant strides worldwide. Over a timeframe of 2-3 months, the firm manages to secure a considerable amount of capital from several renowned angel investors such as:

Pantera Capital
Andreessen Horowitz
Lightspeed Venture Partners
FF Angel LLC
Vast Ventures
Bitcoin Opportunity Fund
IDG Capital Partners
Google

In addition, it should also be noted that during the funding phase of Ripple’s early days, Ripple Labs effectively allocated a certain ownership percentage of the company to various backers who had shown faith in the initiative.

2013 (Q3) — OpenCoin’s official name change

As part of the Money 2020 Expo in 2013, representatives for OpenCoin announce that their company is transitioning its name from OpenCoin to Ripple Labs. This decision, seen in retrospect, turns out to be a remarkable PR move, as the term Ripple has since become synonymous with the cryptocurrency domain.

2013 (November) — New partnership revealed

In the final week of November, Ripple Labs chooses to partner with Georgia Tech’s Computing for Good (C4G) initiative.

2014 (January-March) — XRP transaction volume continues to grow

During the first half of 2014, XRP’s transaction volume continues to rise, with many exchanges reporting the currency’s daily transaction figures hovering around the $40 million threshold.

2014 (October-November) — Continuous popularity surge

Thanks to Ripple’s extraordinary technological capabilities, the platform gains increasing global recognition. Moreover, numerous developers start recognizing the project and advocate its potential within the international finance landscape. In the same vein, during the latter part of November, Ripple begins promoting its technology to various banks and remittance service providers.

2015 (March) — A controversy unfolds

In an unexpected turn of events, Ripple Labs prohibits Jed McCaleb (one of Ripple’s co-founders) from liquidating his personal XRP assets. It is reported that Jed attempted to sell a total of 100 million XRP to an undisclosed buyer for a considerable amount of $1 million.

To prevent the transaction from being completed, Bitstamp opts to freeze its USD tokens in Jed’s account.

2015 (April) — Continued expansion

Due to Ripple’s rapidly growing popularity, the project proceeds to broaden its operations and establish new locations across the globe. In April, Ripple Labs launches a new research center in Sydney, Australia to significantly enhance its R&D endeavors.

2015 (September) — XRPChat emerges, XRPTalk declines

Within a month, XRPTalk — an independent platform that provided Ripple enthusiasts with a space to unite and discuss XRP-related topics (free from the negativity that characterized Bitcointalk.org) — ceases operations. The concept originates from an individual known as Hurukan. By the month’s conclusion, the forum is offline, and a new initiative called XRPChat starts to gain traction within the global crypto space. Similar to its forerunner, XRPChat also offers its users a platform to discuss a variety of topics connected to Ripple, XRP, and the Interledger Protocol.

2016 (January) — Garlinghouse takes charge

In the second week of January, Ripple officially announces Brad Garlinghouse as its new CEO. Garlinghouse previously held the position of CEO and Chairman of Hightail and also managed high-level roles at multiple companies such as AOL (President of Consumer Applications) and Yahoo (Senior Vice President).

2016 (February) — McCaleb settlement reached

After months of the lawsuit languishing, Jed McCaleb and Ripple Labs finally reach a consensus where Jed agrees to a series of resale conditions concerning his personal XRP holdings.

2016 (March-July) — Ongoing expansion

Ripple’s influence continues to grow globally, with the company opening a series of European offices in prominent cities like London (March) and Luxembourg (June). Following this duration, there is also a notable rise in the daily trade volume of XRP.

2016 (September) — New investors flock to Ripple

By the end of September, Ripple’s technological offerings continue attracting a growing number of high-profile investors. Notable names include Standard Charter, Accenture, SCB Digital Ventures, SBI Holdings, Santander Innoventures, CME Group, and Seagate Technologies.

2016 (November) — Tiffany Hayden gains recognition

During mid-November, Tiffany Hayden, the CEO of XRP, is recognized as one of the most influential figures within the blockchain sector by a well-regarded media outlet. This recognition enhances the company’s market visibility and further amplifies consumer interest in Ripple/XRP.

2017 (March-April) — New functionalities introduced

Between March and April, Ripple’s development team announces the incorporation of two new functionalities into its existing financial ecosystem — namely, Escrow and Payment Channels. These features significantly improve the overall performance and scalability of The Ripple Consensus Ledger (RCL). Furthermore, they enable companies to adopt the RCL along with the Interledger Protocol (ILP) with greater ease.

During this period, Ripple also publishes a blog post indicating its decision to establish partnerships with a total of 10 new banks. Some notable institutions in this regard include:

BBVA in Spain
MUFG in Japan
Akbank in Turkey
SEB in Sweden
Axis Bank and Yes Bank in India

2017 (May-July) — XRP trading pairs listed on Kraken

In May, Kraken — which was one of the leading cryptocurrency exchange platforms globally at that time — announces its choice to add four different XRP trading pairs (XRP/EUR, XRP/JPY, XRP/USD, and XRP/CAD) to its native transaction interface.

2017 (September) — R3 files a lawsuit against Ripple

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In September, R3 LLC, a company specializing in enterprise blockchain technology, takes legal action against Ripple concerning a particular contractual agreement where the organization had consented to sell up to 5 billion XRP at a specified price. In response, Ripple files a counter-lawsuit against R3, asserting that the company violated several contractual commitments, and claims that the legal action is merely a maneuver to capitalize on XRP’s increasing financial success. Ultimately, a judge in Delaware delivers a judgment favoring Ripple’s narrative.

2018 – present

During the initial week of January 2018, XRP’s price skyrocketed to an unprecedented peak, with a single token trading at an astonishing $3. However, in the following months, the asset experiences a steady drop, concluding the year at a bleak price of $0.37. Similarly, it’s worth noting that XRP’s performance throughout 2019 remains rather unsatisfactory. For instance, over the past 9 months, the digital asset has continued to decline — its value has further diminished by an additional 15% during this period.

Additionally, it’s significant to mention that in mid-2018, a class-action suit is initiated against Ripple, wherein the complainant alleges that the company has facilitated the use of a fraud that permitted it to “raise hundreds of millions of dollars through unregistered sales of its XRP tokens.” The case is still undergoing legal proceedings and is expected to reach a resolution soon.

Now, let’s transition to our concluding two key review points regarding Ripple, addressing the misconceptions between Ripple and XRP — the enterprise and the coin, along with the optimistic forecasts and thrilling anticipations coming from Ripple for XRP.

Ripple (Company), XRP (Coin) and Their Relationship

Ripple and XRP have frequently sparked misunderstandings within the cryptocurrency community. Can we interchange them? Is XRP synonymous with Ripple? Is XRP considered a security? These questions continue to generate uncertainty among crypto investors and users. Nonetheless, in a recent article by Thomas Silkjaer published in Forbes, he clarifies 14 prevalent misconceptions about Ripple and XRP.

To elaborate, let’s examine the distinctions between Ripple and XRP and strive to dispel any misunderstandings circulating within the XRP community.

Ripple is a corporation dedicated to enhancing cross-border transactions through the innovative products and services it has developed. Generally, banks and financial institutions offer costly services for transferring funds internationally, as the global remittance sector for cross-border payments exceeds $1 trillion annually. These services are not only expensive for users but also inefficient due to the lengthy time required for settlement.

The Most Common Mistakes About XRP and Ripple

Ripple has introduced two primary cross-border solutions: xCurrent and xRapid (now known as On-Demand Liquidity or ODL). So far, xCurrent has been the more widely adopted product since xRapid launched towards the end of 2018. xCurrent operates as a settlement framework enabling participants to exchange messages, clear, and settle transactions.

The efficiency of this product has allowed it to compete with the existing solutions offered by SWIFT, the leading entity in the market. SWIFT’s system permits businesses to finalize payments within a few days.

If transaction settlements using xCurrent are rapid and cost-effective, why utilize the digital asset XRP? The solution proposed by the author suggests that every process can be completed more swiftly and at a lower cost.

In this regard, Ripple Insights states:

“The cost and complexity of maintaining these (nostro/vostro) accounts worldwide is one reason only a few banks can manage global transactions. The burden of sustaining nostro accounts across the globe is simply unfeasible for most institutions.”

xRapid eliminates the necessity to maintain these accounts. xRapid provides liquidity on-demand, allowing institutions to acquire XRP for fiat, perform a transaction, and dispose of the XRP for fiat once again. This can be executed in mere seconds.

Consequently, Silkjaer emphasizes that while XRP is not required for transaction processing, firms can opt to use it to further decrease expenses.

The second misconception he addresses pertains to XRP’s volatility and its potential impact on banks. XRP is undoubtedly volatile. This characteristic is inherent in virtual currencies, which can fluctuate significantly within short timeframes. This means that banks are susceptible to extended exposure to these exchange rate variations.

Nevertheless, institutions are not obligated to retain the XRP cryptocurrency. Concurrently, the xRapid product operates very quickly. Institutions acquire the asset, conduct the transfer, and dispose of the XRP in a matter of seconds. A transaction could receive confirmation from the network in as little as 4 seconds, which is considerably quicker than the 10 minutes Bitcoin (BTC) requires for settlement.

In general, holding fiat currencies for extended durations is correlated with volatility. For instance, the Euro declined nearly 1.2% against the US dollar in a matter of minutes on March 7. Over the span of a year, the Euro has fallen 10% when compared to the US dollar.

In summary, it is not necessary for parties utilizing XRP to retain the digital currency. They need to manage it merely for seconds. Conversely, when using fiat currencies in nostro/vostro accounts, the volatility over longer periods could more significantly impact the institution.

Stablecoins may also play a crucial role in assisting companies with cross-border transactions. Since they are tied to a fiat currency and tend to have minimal value fluctuations compared to XRP, they might be a suitable option in certain circumstances.

However, managing stablecoins differs from transferring value across borders. Unlike Bitcoin, Litecoin (LTC), or XRP, there is no inherent promise of value in those currencies. They are valuable assets in their own right. In contrast, stablecoins merely represent a promise of future value.

Stablecoins can be transferred easily and provide stability, yet their worth ultimately hinges on the assets backing them. Thus, a stablecoin can be just as volatile as the currency it is pegged to and is issued by a third party that possesses the necessary fiat to support them all.

Utilizing XRP or any other digital currency based on a decentralized blockchain network does not compel firms to entrust other institutions. The entire network operates autonomously; if a transaction is executed, it will reach its destination, and the value will have been transferred.

Another topic that Silkjaer discusses concerns digital currencies issued by central banks. Could they rival XRP? Clearly, they hold the potential to do so, like stablecoins. Financial companies would need to rely on a centralized entity, which is the same institution that produces the fiat currency backing the central bank digital currency (CBDC).

To ascertain if a CBDC better suits financial companies, it is essential to evaluate the liquidity of a specific corridor and whether a certain fiat is a superior option to XRP for that transaction.

The author tackles a rather contentious subject — is XRP a genuine cryptocurrency? Some claim that XRP does not qualify as a cryptocurrency. But it is vital to comprehend what digital currencies truly are. Silkjaer presents three distinct definitions from the Oxford Dictionary, Merriam-Webster, and Wikipedia.

Hesummarizes the three definitions by highlighting their dependence on encryption methods for transaction verification, a distributed network, and the absence of a central issuing or overseeing authority. According to the article’s author, these points are applicable to XRP.

He clarifies that the confusion surrounding this topic stems from the fact that XRP does not utilize Proof-of-Work (PoW) or Proof-of-Stake (PoS) as its consensus algorithm. Instead, XRP employs a consensus mechanism, and participants do not receive rewards for their involvement in this network.

Is XRP truly decentralized? This is yet another debated subject within the cryptocurrency market that often leads to evaluations and discussions. PoW and PoS depend on hash calculations to authenticate transactions and release rewards to miners and stakers.

Ripple operates on a Consensus model, which differs from PoW and PoS. Consensus reduces the risk of double spending that PoS and PoW might face during a 51% attack. Additionally, Ripple has various validators situated around the globe, with Ripple Labs constituting only 4 percent of the total validator count within the network.

Moreover, the Consensus mechanism facilitates the potential for forks. There are numerous participating nodes that trust a varying number of validators. As Silkjaer notes, the first step in the Consensus is determining which transactions to include in the forthcoming ledger. The second step involves validation.

Validators independently confirm transactions, producing a unique hash for the ledger. This hash is then utilized to compare results among validators, and once consensus is reached, the “winning” version of the ledger is adopted.

A prevalent misunderstanding within the community regarding XRP relates to the fees incurred during transactions. Utilizing the XRP ledger requires a fee, and higher fees can result in swifter transaction processing by validators.

Nevertheless, the fees paid by users do not revert to a central authority; instead, they are burned, rendering XRP a deflationary currency. When establishing an account on the XRP ledger, a small “reserve” is required. The introduction of fees and reserves serves to prevent spam and malicious attacks. Currently, the base reserve stands at 20 XRP.

Another contentious subject involves the origins of XRP. The article’s author notes that in 2004, a developer named Ryan Fugger established a payment protocol and decentralized platform known as Ripplepay.

Subsequently, in 2011, Arthur Britto, Jed McCaleb, and David Schwartz began developing the XRP ledger to mitigate the risks of a 51% attack that could affect Bitcoin.

In 2012, Chris Larsen joined the team, and Fugger opted to launch a new enterprise called OpenCoin. By 2013, they had raised $9 million and subsequently formed Ripple Labs, making the source code publicly accessible.

The founders decided to contribute XRP to the company (then OpenCoin) while retaining some assets for themselves.

Concerning Ripple’s issuance of XRP, he remarked:

“Whether Ripple created XRP is at best ambiguous. The XRP ledger was developed prior to the company’s formation, yet the founders were also responsible for its creation.”

Some individuals contend that Ripple can generate additional XRP. However, there are currently no mechanisms for this to occur. The creation of more XRPs is impossible. Given the network is “decentralized,” as previously mentioned by Silkjaer, generating more XRP requires the entire network’s approval of a significant code alteration.

Ripple holds approximately 60% of the total XRP supply, functioning as part of its revenue model. However, the company cannot access large amounts of XRP at once. These assets are secured in escrow, allowing the company to release only 1 billion each month. The objective is to prevent market oversaturation and subsequent issues. Consequently, they sell XRP tokens to OTC or institutional investors.

Ripple sells XRP to maintain its operations, but once these funds deplete, they will no longer receive revenue from the XRP cryptocurrency. Nonetheless, as Ripple’s software is “likely” subscription-based (related to the new RippleNet Home launch), onboarding clients will continue to yield a steady revenue stream.

Numerous other misconceptions exist among users regarding Ripple. Nevertheless, XRP has demonstrated its effectiveness for various companies worldwide and individuals seeking seamless cross-border transaction processing. One such firm utilizing Ripple’s technology is BeeTech Global, based in Brazil, enabling customers to make payments worldwide swiftly and affordably.

What the World Looks Like For Ripple in 2020: XRP Expectations?

Although it has polarized members of the cryptocurrency community since its inception, Ripple has firmly established itself as a robust payment solution for financial institutions, while simultaneously ranking among the top 5 cryptocurrencies with XRP. This is especially noteworthy given that it was one of the cryptocurrencies hit hardest by the prolonged bearish trend that characterized 2018.

Despite these challenges, investors place considerable trust and optimism in Ripple as a contender against leading players in the crypto space. Yet, even amid these high expectations, the future remains unpredictable due to numerous factors that traders must consider.

Questions to contemplate include what will drive Ripple’s growth this year? And is it feasible for XRP to surpass the $10 mark, or even reach the $5 or $1 price points this year?

The most logical initial step in addressing these inquiries is to analyze the technical and financial aspects.

Is Ripple Still a Powerful Force?

Ripple’s foundational aim at its inception was to develop a more efficient and rapid method for executing remittances and cross-border payments, offering a significantly faster alternative to the conventional system of ‘Nostro Accounts’.

For Ripple, along with its products like xRapid, cross-border payments leverage XRP tokens, the majority of which are retained by the developers themselves. These tokens serve as a transactional medium internationally, enabling users to convert fiat currency into this cryptocurrency for swift exchanges abroad.

How does this compare speed-wise to the ‘traditional’ international transaction system? Ripple’s financial system operates in roughly four seconds.

With this context, what renders Ripple so technically superior compared to other crypto assets available in the market? This is largely due to Ripple’s exceptionally low commission rates during exchanges, particularly when conducted through major banking institutions ($0.00001).

Thanks to this feature, Ripple proves to be far more competent and successful at gaining traction over time, especially given Ethereum’s scalability and congestion issues, as well as Bitcoin’s slower transaction times.

The conclusion is simple – Banks prefer speed and affordability; thus, with Ripple and xRapid, they receive both, making it a solution to an outdated and costly system for cross-border payment solutions.

Some of the benefits that Ripple boasts include:

Swift transaction process taking approximately 4 seconds.
Remarkably resilient to network downtimes, along with robust defenses against cyber-attacks.
Incredibly low transaction costs, especially when compared to its competitors.
Ripple allowsfor the interchange of any type of fiat currency or tangible asset (Commodities like Oil and/or Gold) with a consistent range of fees.
The foundational blockchain is overseen and regulated by Ripple Labs, which lends XRP and Ripple a heightened level of credibility in the perspective of institutions, including prominent multinational banks, such as Union Credit, UBS, Santander, and several others.

The Condition of Ripple – Its Price Projection for 2020 in Technical Terminology

A multitude of platforms and exchanges feature analysts and cryptocurrency figures who provide various forecasts pertaining to Ripple’s realm. These individuals and their predictions utilize technical evaluations of forecasting charts, the historical price behavior of XRP, and the inherent trends which may substantially affect the market.

Considering all these possible indicators, is there a general agreement?

One aspect they seem to collectively agree upon is that XRP’s value is unlikely to surpass the $1 threshold in the foreseeable future. A notable example includes Wallet Investor’s prediction, which, throughout 2019, asserts that XRP will peak at $0.05 but will not rise beyond this limit.

In contrast, DigitalCoin anticipates that XRP’s maximum price will hit $0.62 by the last quarter of 2019. While this sentiment aligns with various financial forecasts and analysts, some platforms offer a much more optimistic perspective on XRP’s prospects. Notable examples include Express.co.uk and FXStreet, both of which are convinced that XRP could reach between $3 and $5 throughout 2019.

So, with such a diverse array of projections from cryptocurrency investors, which sources are users supposed to trust in this scenario? And what accounts for the stark differences between subjective and more objective predictions?

Practical utilization of these forecasts often reveals that exclusively relying on any single one of them does not yield favorable outcomes. Consequently, users should ensure that they take control of their investments, leveraging a combination of analytics and their own knowledge and experience.

So, What Do Authorities Say About This Issue?

One element that significantly ignited the aspirations of traders and investors during 2018 was the launch of the new xRapid system (now rebranded to ODL or On-Demand Liquidity). The reception was so positive and broadly expected that investors genuinely believed XRP could skyrocket to $500 upon its launch.

Although this breakout was anticipated, the much-awaited surge never materialized for XRP and its advocates – XRP, similar to many others, was restrained in its value due to the severe bearish trend that enveloped the entire crypto market.

Despite the prevailing downtrend, Ripple’s CEO, Brad Garlinghouse, expressed his optimism regarding xRapid during one of his interviews:

“I’ve publicly stated that by the end of this year I am confident that major banks will utilize xRapid as a liquidity tool this calendar year. By the end of next year [2019], I certainly hope we would see dozens of banks doing so.”

Numerous experts resonate with these views, perceiving Ripple’s potential as significant. They offer the following insights:

Expert
Their Perspective

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“Ripple possesses greater potential for an upswing in 2019. As more projects based on Ripple are implemented within the market, it will surpass Ethereum. It was premature for Ripple to dominate in 2018; now is the right time.”

Shidan Gouran (Global Blockchain Technologies):
“Ripple is unlikely to surpass Bitcoin and Ethereum due to three factors. Firstly, its diminutive market cap. Secondly, Ripple is not tailored for everyday transactions. Thirdly, acquiring Ripple necessitates the use of fiat currency – either ETH or BTC is required for that. Therefore, the demand for ETH and BTC will likely continue increasing.”

John-Paul McCaffrey (Long Island University):
“Even though there’s currently no fiat exchange for Ripple, that situation may change shortly.”

Samson Williams (SeedUps):
“Ripple is the creation of banks, and we will see its elevation following the 2018 recession.”

While these commentators have an optimistic outlook regarding Ripple’s potential, they stop short of providing a definitive price forecast.

What Will Propel Ripple’s Growth in 2020?

What truly illustrates the level of success Ripple has achieved since its inception? The most compelling answer lies in the increasing number of exchanges that insist on incorporating it into their listings.

Recently, Ripple faced allegations of financially incentivizing its way onto the Coinbase platform, which representatives from Ripple Labs have categorically denied. The year 2018 was notably fruitful for XRP, achieving a 200% increase, largely due to the collaborative efforts of both the developers on the platform and its committed community.

As 2019 comes to a close and 2020 approaches, what is the probability of this increase occurring? And what exactly will enhance Ripple’s price during this period?

Relative to previous years in the cryptocurrency realm, 2019 is poised to be a truly transformative year for widespread acceptance. Ripple’s CEO, Brad Garlinghouse, has posited that this wave of mass adoption will foster conditions conducive to a significant upswing in the crypto asset market, with the number of exchanges currently hosting XRP set to expand over time. For instance, BitTrue was one of the latest exchanges to incorporate Ripple into its offerings. Additionally, Kraken has announced the trading pair between XRP and Bitcoin Cash (BCH). The introduction of new trading pairs heralds promising news for its broader ecosystem.
A rising interest is evident among banks and financial institutions. This growing interest acts as a compelling driving force for Ripple and its future achievements. A growing number of banks in Japan are expressing interest in collaborating with Ripple, and the attention surrounding the efficacy of xRapid is expected to continue rising. This accumulating interest is likely to elevate XRP’s value.
Alongside this increasing interest, Ripple is also gaining a greater level of trust. Surveys from late 2018 illustrate that traders feel confident in XRP’s potential to yield substantial returns for investors in 2019. Even with a market cap significantly smaller than more influential competitors like Bitcoin and Ethereum, Ripple is arguably better positioned to deliver remarkable returns this year, primarily due to its practical applications and increasing popularity based on these real-world uses.
There are numerous partnerships on the horizon for Ripple, and the enthusiasm for collaboration isn’t limited to global banks and financial institutions. R3 and its Corda Network aim to partner with Ripple and leverage XRP for its network. Ultimately, this results in Ripple securing over 280 partnerships to date, which include a number of central banks among its affiliates. SBI Holdings, which also seeksto partner with Ripple, as it aims to genuinely transform the Japanese financial landscape over the next five years, with Ripple positioning itself as a significant cornerstone in this initiative.

Establishing the RippleNet – PNG Bank Embraces Blockchain and Ripple

Ranked among the top ten in the U.S. banking sector, PNC Bank has officially become a member of RippleNet. Consequently, the bank’s customers will have the capability to utilize real-time cross-border payments via Ripple’s proprietary technology.

With roots in the global remittances sector, Western Union is particularly eager to engage and collaborate with Ripple. This partnership could significantly lower the expenses associated with the current international payments and remittance processes.
The dynamic and ever-changing market landscape of the Middle East is one that Ripple is particularly keen on exploring. Among these areas, it is focusing on the developed and flourishing markets of Dubai and surrounding regions, as well as the affluent Gulf Coast. There exists a notably strong demand for international payments and remittances in this area, positioning Ripple optimally to cater to these regions. It has a specific niche in the market that ensures these countries can genuinely benefit.
With a fresh assortment of offerings being introduced under the broad name – RippleNet (including the new RippleNet Home), significant media attention has been garnered from interested parties. These consist of products like xRapid, xVia, xCurrent, and the InterLedger Protocol. Each of these offerings will allow Ripple to surpass any other available products in the market.

There are indeed numerous factors that will contribute to the ongoing growth of XRP throughout 2019. Considering all these aspects, the question is not if, but rather when, regarding XRP’s economic expansion. As long as these plans and objectives continue to be realized in the opinions of its partners and investors, Ripple will be able to generate significant momentum and initiate a powerful upward trajectory.

In conclusion, Ripple may not be garnering widespread support if judged solely by its degree of decentralization or the level of anonymity it affords its users. It balances this by attracting a progressively increasing amount of institutional backing and stability, including growing interest from major market players. Is there sufficient driving force to validate its growth?

Is There an Estimate on How Much XRP Will be Worth by the end of 2019?

Alongside the significant interest that Ripple has generated among institutional investors and financial entities, there has been heightened speculation surrounding the price that Ripple might achieve by the end of 2019.

Some assert that XRP could reach the $100 threshold, if not potentially surpassing the $500 mark in the near future of 2019; however, this remains mere speculation for now. There has already been ample discussion regarding the tangible prospects that lie behind the genuine possibilities which could facilitate XRP’s growth.

While there is strong hope that XRP will exceed its modest beginnings, achieving even the $5-10 range will present a considerable challenge for XRP.

The Short-Term Outlook

In recent months, we have observed the formation of two descending wedges, both serving as catalysts for a series of breakouts that occurred soon after. The first lasted approximately 260 days and led to an impressive surge of 192 percent in XRP’s underlying value, ascending from $0.26 to $0.86.

The second is currently in motion, having lasted a total of 150 days so far, and we can anticipate a breakout to manifest any time soon. At present, Ripple’s price has been consolidating horizontally. Should a breakout occur for XRP, we could foresee it reaching $0.57 or possibly $0.80.

Although substantial efforts have been made to significantly enhance the performance of XRP and Ripple overall, we cannot overlook the influence of the cryptocurrency market on digital assets as a whole.

Despite its ongoing advancements, Ripple has maintained a relatively stable market capitalization of $12 billion, and given that the majority of XRP is held by the company itself, even if it breaks through its upper value supports, investors may not benefit significantly compared to what is possible with other cryptocurrencies.

Can Ripple Achieve $10 in 2020?

Numerous experts suggest that Ripple could surpass the resistance levels of $0.40 to $0.50 which have restrained Ripple in a price stagnation for an extended period. This would enable XRP to break free from this formerly price-determined circle and potentially advance to $1.

However, while such an event is anticipated, can we realistically expect this to occur within the first quarters of 2019? These same analysts believe it can overcome these resistance thresholds, but not by Q1 – there are few, if any, factors to support that notion.

This is the unfortunate reality that optimistic individuals will need to accept. Once there is a more significant influx of institutional investment within the Ripple ecosystem, circumstances and fortunes may indeed shift for the better. Should this transpire, we can project the underlying value of XRP to reach:

Approximately $1-2 in Q2 2019
Approximately $3-5 in Q3 2019
Approximately $5-10 in Q4 2019 (in an ideal scenario)

What is Hindering Ripple from Advancing Further?

We can readily identify the advantages associated with Ripple’s application. Nevertheless, it does not lack disadvantages requiring attention. Below are some of the aspects that may deter investors from engaging with Ripple:

Ripple is a currency characterized by significant centralization. It is primarily controlled by Ripple Labs. With around 61 percent of XRP’s total volume under the company’s possession, this fundamentally undermines its potential liquidity, with traders often accusing Ripple of market manipulation.
Currently, Ripple cannot be acquired with fiat currency. Traders can only trade it for other cryptocurrencies, with these alternative cryptocurrencies benefiting from this situation.
Ripple is dedicating considerable time to focusing on institutional finance and banking. Consequently, it cannot be directly utilized for online purchasing on an individual level, sacrificing a considerable amount of flexibility. This lack of adaptability poses challenges for Ripple if it aims to compete with cryptocurrencies striving to penetrate the hands of individual buyers and sellers.
At present, the cryptocurrency market is in a cooling-off phase. The days when companies could amass large amounts of capital through minimally substantiated ICOs and white papers are now behind us. As a result, we are witnessing heightened skepticism from a market that has awakened from an excessively hyped bullish trend. Traders are making more educated choices and are unwilling to accept high risks for the promise of greater returns.

Currently, the cryptocurrency market needs to undergo a substantial overhaul to facilitate XRP’s exit from the lower value circle it presently inhabits.

The Bottom Line is This

Supporters of Ripple will continue to stay enthusiastic. The XRP community and global Ripple supporters form one of the largest groups advocating for the facilitation of seamless global payments. From the passionate crypto Twitter backing of XRP to the company’s University Blockchain Research Initiative (UBRI), Ripple’s outlook for 2020 and beyond remains exceptionally optimistic.

If any or all of these various forecasts about XRP’s price materialize, we could indeed witness Ripple surpassing the lower $0.25 resistance level, and perhaps even surpassing its previous peak price record of $3.65. This seems to be the most probable outcome, especially once Ripple successfully implements On-Demand Liquidity (xRapid) throughout this year.

However, our focus today was not on the price of XRP or the exchange rate of Ripple coin; instead, it was to learn about Ripple, the company, and XRP, the cryptocurrency; and their significance both individually, collectively, and as integral components of the burgeoning bitcoin-led ecosystem of digital assets and virtual currencies.