The third largest cryptocurrency of the market capitalization, Ripple’s XRP (XRP) gained national recognition after Donald Trump mentioned “valuable cryptocurrency” as part of the US strategic password protection zone with BTC, ETH, SOL and ADA.
On March 6, Trump’s administrative order established a new structure for ALTCOINS (Digital Asset Reserve) managed by the Treasury.
The encryption community is still divided into whether XRP is actually worth, as Trump suggested, but it is necessary to take a closer look at the usefulness of Altcoin.
The potential role of XRP in the bank
The XRP director (XRPL), which started by Ripple Labs in 2012, was designed for settlement between banks. Initially, we provided three enterprise solutions: XRAPID, XCURRENT and XVIA, and later changed the brand under Ripplenet umbrella. Xcurrent is a real -time messaging and payment between banks, and XVIA is a payment interface for financial institutions to send through Ripplenet, and XRAPID, which is part of the current custom liquidity (ODL), facilitates transactions between borders.
Only ODL actually requires XRP. Through other services, banks can use Ripple Net without taking tokens. This means that the adoption of ripple technology is not always the price of XRP.
Some of the world’s largest banks were XCURENT and XVIA, including American Express, Santander, Bank of America and UBS. Less data for entities using XRP -based ODL services. The known adoptees include SBI REMIT, a major Japanese remittance provider, and Tranglo, a major remittance company in Southeast Asia.
The role of XRP in Web3
XRP is also used as a gas token. However, unlike the Ether Leeum network, which is a commission to the validity test, a small amount of XRP is burned as an anti -spam mechanism.
The role of XRP in Web3 is minimized. Unlike Ether Lee, Ripple does not support complex smart contracts or DApps. Only default Web3 features such as token issuing mechanisms and default NFT support according to the XLS-20 standard introduced in 2022.
The XRPL Web3 ecosystem is small. According to Defillama, the appropriate flaws have $ 80 million in total value locks. The token of XRPL is $ 468 million, according to XRPL.TO. Most of them are Dex tokens (solo) and memes (XRPM), as well as packaged BTC and Stablecoin.
So far, XRPL’s Web3 division remains a niche market and is a true smart contract platform such as Ethereum and Solana.
relevant: The SEC delays the decision of XRP, Solana, Litecoin, and Dogecoin ETF.
Crypto Pundits divided the hair in the role of XRP in the strategic protection zone.
Representatives of Ripple Labs have long been advocating Cryptocurrency’s equal treatment with the Brad Garlinghouse CEO, which repeats this on January 27.
Garlinghouse said.
“We live in the multi -culsin world, advocating level playfields instead of one token to other tokens. If the government’s digital asset protection area is created, I think it should represent the industry, not just one (BTC, XRP or other guitar). ”
But not all cryptocurrencies provide the same purpose. The main role of Bitcoin is that the encryption analyst Willy Woo is “a designated neutral asset like Gold.” The purpose of the XRP is less clear, but few people claim that they are qualified as independent funds in the encryption space.
This is mainly due to the licensed characteristics, one of the most uncomfortable aspects of Ripple. Unlike Bitcoin or Ethereum, Ripple does not depend on miners or fixed tokens to protect the network. Instead, we use a list of unique nodes, a reliable validation test that is responsible for approval of transactions. This optimizes speed and efficiency, but raises concerns about censorship, corruption and security risks.
Bitcoin supporters of Casa Jameson Lopp and co -founder XRP have not been suspended.
“There is Bitcoin, encryption, and ripples. Ripple attacked Bitcoin at a level that competes only by BSV’s lawsuits. Ripple explicitly wants to power CBDC. They always focused on banking services. There are few projects with Bitcoin. ”
In particular, Ripple’s co -founder, Chris Larsen, has partnered with Greenpeace to fund the anti -bitcoin campaign, especially between Bitcoiners and Ripple supporters.
However, comparison with the CBDC of LOPP has some weight given the licensed characteristics of the XRPL. It reflects the common view of the encryption community that functions like banking tools rather than true independent cryptocurrency.
The XRPL blockchain is seeing a wide range of use in banking, but the utility of XRP is still concerned. It is emphasized by the fact that about 55%of the 100 billion pre -mining coins are still owned by Ripple Labs. This concentration raises concerns about potential market manipulation and long -term stability of coins.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.