To begin with, it’s important to understand the difference between XRP, Ripple and RippleNet. XRP is the currency that runs on a digital payment platform called RippleNet, which is on top of a distributed LEDGER database called XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open-source and is not based on blockchain, but rather the previously mentioned distributed ledger database.
The RippleNet payment platform is a real-time gross settlement (RTGS) system that aims to enable instant monetary transactions globally. While XRP is the cryptocurrency native to the XRP Ledger, you can actually use any currency to transact on the platform.
While the idea behind the Ripple payment platform was first voiced in 2004 by Ryan Fugger, it wasn’t until Jed McCaleb and Chris Larson took over the project in 2012 that Ripple began to be built (at the time, it was also called OpenCoin).
How Does XRP Work?
XRP was created by Ripple to be a speedy, less costly and more scalable alternative to both other digital assets and existing monetary payment platforms like SWIFT.
RippleNet’s ledger is maintained by the global XRP Community, with Ripple the company as an active member.
The XRP Ledger processes transactions roughly every 3-5 seconds.
Price prediction 2021
What will drive Ripple price to $3 in 2021?
Ripple understands that adoption is critical to growth for the price of XRP as well as the company. Some partnerships that continue to play a significant role in XRP growth include Banco Santander (SAN), HSBC Holdings (HSBA), Mizuho Financial Group (8411), Sumitomo Mitsui Financial Group (8316) and the global money transfer giant MoneyGram.
Consequently, Ripple is preparing to bring to the market another service called PayString. The service was made public in November after Ripple Labs made a trade market application to cater to electronic financial services such as remittances, fiat and virtual currency transfers.
Similar to BTC and ETH, early year strenght in USD will pressure the USD price of XRP. This will cause XRP to give back most all of its 2020 gains, but will regain its recent high by the end of the year.
I believe in Ripple. Till end of the 2021 will be 3$ minimum per coin!
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Resources :
1. https://coinmarketcap.com/
