Smart Valor users can now trade XRP with Bitcoin (BTC) and Swiss franc (CHF) pairs.
Smart Valor’s announcement gave a brief yet accurate description of XRP and its advantages. XRP has utility, speed, low transaction fees, high scalability, and minimal ecological impact.
“After Bitcoin and Ether, XRP is the token with the largest market cap — $10 billion as of the time of this announcement. The total coin’s trading volume is valued at around $700 million in the 24-hour period leading up to today.
XRP features one of the most frequently applied use cases in crypto. With ultra-low transaction fees and times, XRP facilitates exchange between less-commonly traded currencies worldwide. XRP can be transferred to anywhere in the world within seconds. Current standards in the banking industry — much of which still runs on antiquated wire transfer technology — take days.
Its fundamental efficiency means that XRP is uniquely scalable among current digital assets. The coin’s ledger handles 1’500 transactions per second and can reportedly scale to equal Visa’s 65’000 per second — for comparison, Bitcoin’s limit is 3.8 and Ethereum’s is, 15.
Ripple’s use of Ripplenet, in particular, has attracted major players from traditional finance to regular use of XRP. PNC and Santander are among major banks using the company’s payment protocols. And as of summer 2019, Moneygram has been using Ripple’s xRapid technology to streamline its international payments as well.
The reason? The speed and low cost of XRP’s transactions allow banks to transfer funds internationally and convert between currencies more efficiently than their traditional mechanisms.
Since XRP trades across so many currencies and with such low fees, it is often cheaper to go from, say, pesos to XRP to yen than it would be to trade pesos directly for yen through traditional banking systems — which charge major fees for these conversions. This use case is particularly important for smaller banks that cannot afford to maintain access to a wide range of currencies themselves.
In addition, this technology has the potential to change the lives of the world’s quarter-billion migrant workers regularly sending paychecks to their home countries. Traditional systems charge fees on such payments of upwards of 10%. That’s a stranglehold that XRP is already working to break.
Unlike Bitcoin’s proof-of-work mechanism for keeping a decentralized ledger accurate, XRP depends on proof-of-consensus. Instead of energy-hungry mining operations, a network of trusted validators verifies XRP’s ledger for accuracy — with a resultant decreased environmental footprint.
The news first appeared on cryptoninjas.