The concepts of XRP and XRapid can often be very confusing to people. Though related, the two are quite different and each has their own unique purpose. This article highlights the differences between XRP and XRapid along with their respective pros and cons.
What are the differences?
As stated on the Ripple website: “The XRP Ledger is an advanced blockchain-like system that was designed to let people transact in multiple currencies. Users of the XRP Ledger can seamlessly track, trade, and settle multiple currencies in an exchange that’s as decentralized as the network itself. Users can issue their own currency-like digital assets, which may or may not represent obligations owed outside the XRP Ledger. Tying it all together is XRP, the XRP Ledger’s native cryptocurrency, which acts as a medium of exchange and serves anti-spam purposes”
XRP (Ripple) is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. Whereas XRapid, is a liquidity solution for banks that use Ripple’s XRP as a bridge currency. According to Ripple, XRapid eliminates delays in global payments while also dramatically lowering costs, thus, making cross-border payments instant and inexpensive.
Its users do not create coins through the mining process. Instead, the company itself has created 100 Billion XRP coins. XRP works on a decentralized blockchain network. This means that investors can buy or sell XRP through the company’s secured system.
(Find the Beginner’s Guide to XRP: What is XRP?)
Why trade XRP?
Ripple has a well-structured infrastructure
XRP’s core protocols results in cheaper and faster solutions than its competitors. The brand boasts of an incredibly fast transaction system that allows a user to complete a transfer within three minutes. This hastiness results in savings of up to 40%-70%. The well-built protocol yields a highly scalable product that can easily adapt to the trends of the market.
Stability and price
Compared to its competitors, Ripple has proven to be the least volatile. During a significant market crash, Ripple remained quite stable as other cryptocurrencies lost more than 25%-30% of their market capitalization.