What is XRP?

XRP is a digital asset that’s native to the XRP Ledger—an open-source, permissionless and decentralized blockchain technology.Created in 2012 specifically for payments, XRP can settle transactions on the ledger in 3-5 seconds. XRP can be sent directly without needing a central intermediary, making it a convenient instrument in bridging two different currencies quickly and efficiently. It is freely exchanged on the open market and used in the real world for enabling cross-border payments and microtransactions.

Resources

White paper

Official website

XRP blockchain explorer

How does XRP work?

The XRP Ledger contains a permissionless network that is fueled by peer-to-peer servers. This network enables numerous functions and is centered around the XRP, which has the objective of linking “difficult to couple” fiat currencies. The Federated Consensus algorithm is utilized in the XRP Ledger as opposed to the more popular proof-of-stake or proof-of-work methods. In this particular system, participants are known and trusted by other participants, unlike miners, who are rewarded for securing the network. Once a new block is validated and agreed upon, referred to as a “ledger version,” the block’s content cannot be modified. This feature enables a comprehensive history of the ledger status to be stored by servers in the network. Available languages for the XRP Ledger include JavaScript, Java and Python, among others. Additionally, XRP tokens support Ripple’s RippleNet service, which constitutes a payment API, real-time settlement system and a liquidity product. Furthermore, on-demand liquidity (ODL) is provided using XRP tokens, allowing swift exchanges in the magnitude of just 3 seconds, compared to fiat currencies which can require days.

Ripple and the SEC

Ripple Labs, the creators of XRP token, and the United States Securities and Exchange Commission have been embroiled in a legal battle since the end of 2020 over the question of whether XRP is a security. On Dec. 22nd, 2020, the SEC sued Ripple Labs and two executives for $1.3 billion-worth of XRP trading as security without being registered with the commission. Although arguments have been made for and against the lawsuit, Ripple has contested the claims, stating that the SEC has been biased in evaluating the case.

To determine if a cryptocurrency is a security, the SEC uses the “Howey test,” relying on the Supreme Court ruling on SEC v. W.J. Howey Co from 1946. If an asset is sold with the expectation of getting profits from the efforts of other parties, it is considered a security. As per the commission’s definition of XRP in the lawsuit, the cryptocurrency would pass the Howey test. As all securities must be registered following SEC regulations, the future ramifications of the lawsuit, which Ripple is fighting, would undoubtedly be far-reaching in the crypto world. If Ripple wins, other crypto-based businesses may follow suit with the SEC losing some of its authority. Alternatively, if the SEC wins, it could upend the operations of crypto enterprises, resulting in a fresh set of registration policies applicable to securities.

How to buy XRP on XT.COM?

XRP can be purchased directly from XT.COM by using a debit or credit card. XRP can also be traded for other cryptocurrencies on the XT.COM Crypto Exchange. Live XRP price is updated in real-time on XT.COM. Buy XRP on XT.COM in four simple steps:

1. Create your free XT.COM account
   Sign up or download the XT.COM app and start the sign-up process. Provide your email address, country of residence and secure your account with a strong password.
2. Secure Your Account
   Ensure stronger protection of your account by setting Google 2FA code and anti-phishing code.
3. Choose how you want to buy the XRP asset.
   Click on the “Buy Crypto” link on the top left of the XT.COM website navigation, which will show the available options in your country.
4. Buy XRP
   Use a variety of payment options to buy XRP on XT.COM.