XRP May Sink: What Cryptocurrencies Can Serve As A Lifeboat?
XRP and its investors are in rough waters fighting the SEC hurricane. Is it time to man the lifeboats of XLM and IOTA?
Executive Summary: XRP and The XRP Ledger are fascinating in their potential. The use that Ripple brought forward for the XRP Ledger is profound but investor concerns regarding the SEC and its views on what defines a security may make many look elsewhere. We look at two alternatives Stellar Lumens and IOTA.
What Are XRP and the XRP Ledger?
The XRP Ledger (XRPL), a decentralized, open-source technology, was introduced in 2021. The XRP Ledger has numerous benefits including low transaction costs ($0.0002 on average), rapid settlement times (3-5 seconds), scalability (1,500 transactions per second), and is inherently environmentally friendly as it is carbon-neutral and energy-efficient. The XRP Ledger ecosystem also includes an initial decentralized exchange (DEX) and special tokenization features. Since its debut in 2012, the XRP Ledger has successfully closed 70 million ledgers.
Who Are the Creators of the XRP Ledger?
David Schwartz, Jed McCaleb, and Arthur Britto introduced the XRP Ledger in 2012 as a speedier, more energy-efficient alternative to prevalent and nearly omnipresent Bitcoin blockchain. In September 2012 Larsen, Schwartz, and McCaleb started what is now known as Ripple. The organization responsible for the blockchain technology and that also wrote the protocol which in turn issues the XRP currency.
What Makes XRPL Unique?
There are many payment-related use cases and applications, such as micropayments, DeFi, and, soon, NFTs, that are available on the XRP Ledger. The introduction of diverse financial instruments is not necessarily beneficial if the data that is generated from transaction history and assets acquired is not carefully parsed and analyzed. A sensational book that outlines useful methodology to apply to Data Analysis and which can’t be highly recommended enough is: Becoming a Data Head by Gutman and Goldmeier.
Additionally, developers using Python, Java, and JavaScript can benefit from the tremendous utility and flexibility offered by the XRPL. On the XRP website, developers may access a range of courses to learn how to use different coding languages, build apps, manage accounts, and more. The XRP Ledger and its native currency, XRP, are used by developers to create efficient remittance and asset tokenization solutions. The five main applications of the XRP Ledger now are payments, tokenization, DeFi, CBDCs, and stablecoins.
How Safe Is the XRP Ledger Network?
Unlike Bitcoin or Ethereum, XRPL validates transactions using a unique Federated Consensus method. This innovative and distinct consensus mechanism confirms transactions on the XRPL blockchain. It accomplishes this task by having a group of carefully chosen independent servers known as validators come to agreement on a transaction as well as any subsequent updates. Any transaction that adheres with the established community implemented and pre-approved protocol is instantly confirmed with each transaction having been processed evenly across all servers on the network.
A validator can be almost anybody, and all interactions are open and transparent. On the ledger, there are already more than 150 validators that are operated by institutions, exchanges, organizations, and private individuals around the world. All confirmed transactions can be managed through the Federated Consensus technique without a single point of failure because no one member makes choices independently. This lack of individuality also creates a robust system with high resilience to errors and built in redundancy. You can match the Validator’s accuracy in your own life by checking out Rose’s interesting book titled Collective Illusions: Conformity, Complicity, and the Science of Why We Make Bad Decisions.
Why Do We Need XRP As There Are So Many Other Cryptocurrencies?
With its unique functions and uses, XRP is a great addition to the existing world of cryptocurrencies. Its low cost, speed, scalability, and green properties are highly desirable traits for market enthusiasts and investors alike. Developers have more control and utility thanks to the XRP Ledger's decentralized exchange which helps provide them not only the option to but also a solid mechanism to design their own coins.
One of the most significant benefits of the XRP Ledger is the previously mentioned Federated Consensus mechanism, which ensures that all verified transactions may be completed without a single point of failure. As a result, the XRP Ledger is more secure and less prone to assaults than competitor blockchains.
A good analogy is to say that its Federated Consensus method is the FIFA system equivalent. The rules for playing soccer are the same all across the world. All validators operate in accordance with the same set of rules and expectations on the XRP blockchain, preventing any disastrous anomalies from occurring.
In addition to its unique features, the XRP Ledger offers a variety of use cases, including payments, tokenization, DeFi, CBDCs, and stablecoins. Developers have created solutions for utilizing its helpful characteristics in order to address existing inefficiencies in money transference and conversion processes such as remittance and asset tokenization.
In general, the XRP Ledger has a variety of advantages that sets it apart from competing cryptocurrencies and add value to the ecosystem. End users benefit greatly from its unique capabilities and features, and developers gain from its adaptability and usefulness due to the wide variety of application situations. Think of it as a Swiss Army knife of blockchains. Speaking of Swiss Army knives, we can’t say enough incredible things about Victorinox Swiss Army Pocket Knife!
What Are Two Alternatives To XRP?
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You may be put off by its case with the SEC and that is perfectly understandable! In that case Ethereum is a much more stable bet. You, may however, want something with a bit more unrealized market potential. Two Altcoin alternatives to XRP that you might find interesting are Stellar Lumens (XLM) and
Stellar Lumens (XLM): XLM is a cryptocurrency and platform that makes it incredibly simple, quick, and affordable to move money across borders. For currency conversions, the network uses its own native currency, XLM, as a "bridge asset." This enables users to send and receive money in their home currency, with the recipient having the option to receive it in their preferred currency.
Stellar Lumens uses its own blockchain technology, which offers speedy settlement times—typically in a matter of seconds—for a very low transaction fee. The non-profit Stellar Development Foundation, which manages the platform, has collaborated with many financial institutions and groups to offer accessible financial services to the globally underbanked and unbanked people. Stellar Lumens has the ability to dramatically alter the present financial system by providing quick, affordable, and accessible financial services to everyone, regardless of location or financial position.
IOTA: Although not a perfect replacement for XRP, IOTA is nonetheless a state-of-the-art cryptocurrency designed to enable secure data transmission and interoperability across devices in the Internet of Things (IoT) ecosystem. Unlike other blockchain-based cryptocurrencies, IOTA uses a revolutionary design called the Tangle to enable faster, more scalable, and fee-free transactions. This does away with the need for miners or fees and allows the network to efficiently and concurrently process a massive number of transactions. Because of its data transfer capabilities and secure, tamper-proof ledger, IOTA offers a wide range of applications in industries including smart cities, supply chain management, and the automobile industry. With its cutting-edge technology, IOTA has the potential to fundamentally alter how we exchange and process data, opening the door for a more connected and productive future.
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Conclusion: XRP is a powerful Altcoin that has drawn its fair share of attention due to its ongoing lawsuit with the SEC. There is nothing inherently wrong with the project or the currency but no news is good news. Investors looking to hedge their bets do have options that can't hurt revisiting. As always we would love to read your thoughts regarding XRP, XML, and IOTA in the comments section below!
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