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Ripple effect of RippleNet
One of the great strengths of XRP is the unique technical network that supports it. The RippleNet network designed by token creator Ripple is differentiated from those of other blockchain companies in that it presents as a speedy and legally-compliant offering. RippleNet’s appeal lies in eliminating intermediaries and greatly reducing fees while connecting businesses with financial institutions. Transaction fees are priced at less than $0.0001 compared to traditional wire transfers, which can cost anywhere between $20 and $50. Ripple says XRP can process as many as 1 500 transactions per second – comparatively much faster than most of its cryptocurrency rivals. As a result, cross-border transactions can be concluded in as little as three seconds. The network also makes it easier for businesses and financial institutions to rectify incorrect transactions. RippleNet comprises a system of computers and other tech devices, known as “nodes”, to establish new blocks and verify transactions. Because it has fewer nodes than other blockchains, editing a mistake or fraudulent transaction is much simpler. XRP Ledger is RippleNet’s “operating system” that records transactions in real time via distributed ledger technology. Particularly in regions where banking infrastructure is poor, the On-Demand Liquidity feature finds favour as it eradicates the need for pre-funded accounts for cross-border payments.
Purpose drives XRP buy-in
The instantaneous nature of XRP transactions is peaking the interest of many investors. While crypto markets are known for being volatile, the token continues to draw attention. Aside from the strength of the system supporting it, investors like that XRP was created to solve the problem of slow and costly international transactions. The past 15 years have seen many new cryptocurrencies come and go simply because they seemed to have no real end-purpose. This has not been the case with the Ripple token, with the XRP to USD conversion serving as a strong indicator of the cryptocurrency’s staying power. Its credibility is further enhanced by the support network’s partnership with high-profile payment-solution providers and banks. World Bank, Bank of America, Amazon and money-transfer giants like American Express and Western Union all feature on Ripple’s list of partners. The reason such well-established companies are teaming up with Ripple is because unlike other crypto offerings which are characterised by open validation, only those recommended by Ripple itself may grant permissions. The key to this model is a consensus mechanism where transaction validity is agreed to by selected participants. Banks and payment services firms therefore feel more secure in the more centralised system.
XRP ready to break out
While XRP is yet to shoot the lights out, analysts suggest it is in breakout territory.
The token continues to display a pattern of sideways consolidation, Ripple is constantly improving its cross-border payment offering, and there is growing confidence in altcoin among market players.
Should XRP and RippleNet continue to evolve as anticipated, crypto forecasters predict that the token could breach the $10 by the fourth quarter of 2028.
