Since 2020, the US Securities and Exchange Commission (SEC) has been suing Ripple Labs, Inc. and its co-founders. This ongoing legal battle has caused some uncertainty for investors in XRP, the cryptocurrency used on the Ripple network. However, each week XRP wins a small victory and gives investors confidence in their investment.
Why is following XRP beneficial?
One key difference between XRP and the SWIFT system used by traditional banking systems is the technology used. SWIFT uses a global fund transfer system to make international transactions by sending messages between banks that contain information about the transaction, such as the value and the accounts involved.
On the other hand, the technology used on the Ripple network is based on blockchain. Blockchain is a decentralized and secure digital record that stores information about transactions. The Ripple network uses a consensus protocol called "validation consensus" to validate transactions.
Positive points of XRP
There are several points where XRP stands out, but I will mention only two:
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Speed: Transactions on the Ripple network are processed in seconds, while SWIFT transactions can take days to be processed.
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Security: Blockchain technology is considered more secure than the SWIFT system as the data is distributed across multiple nodes instead of being stored in central servers.
These two simple points show the huge difference between the two and speak even more about the technology of XRP for the banking system.
Now I ask you: Have you ever imagined if the SEC approves XRP, how much it will reach in values? Remember, everything can change."
