Ripple’s native digital token, XRP, is an alternative to traditional fiat currencies that enables frictionless payments between two parties and acts as a store of value. There is a finite amount of XRP, 100 billion, and the founders gifted 80 billion coins to Ripple to support further development, so XRP has a circulating supply of 56.87 billion. The free-floating cryptocurrency is available to trade on multiple exchanges, peer-to-peer services, DeFi platforms, and mobile wallets. Everyone who invests in cryptocurrency wants to find coins that will increase in value. After a 200% rise in 2024, the price of XRP is $2,428476, and it’s poised for a new all-time high as 35-day resistance nears; if successful, the price could rise to $3,40 or $3,55.
XRP operates on the XRP Ledger, a decentralized public blockchain that empowers fast, low-cost, real-time transfers. Anyone can participate in its development. The XRP Ledger was created to address the inefficiencies of Bitcoin, which is unable to handle large amounts of transaction data on its platform in a short span of time. The XRP Ledger uses a voting-based consensus protocol, so validators agree on the network’s state more efficiently than standard Byzantine fault-tolerant models. XRP is required to use the Ripple protocol, which transcends traditional payment barriers and revolutionizes international money transfers.
We’ve rounded up some examples of XRP use cases. It’s far from being an exhaustive list, but it’s already changing how we do business.
Cross-Border Payments
Cross-border (or international) payments are transactions where the sender and the recipient of funds are located in different countries and with different currencies in play. Facilitating the flow of money across borders has reached new heights owing to greater connectivity and the use of cryptocurrencies, enabling consumers and businesses to enjoy more reliable methods for their payment needs. One of the most notable use cases of XRP is connecting banks, payment providers, and cryptocurrency exchanges to authorize real-time, cost-effective global transactions. XRP functions as a medium for different nations or financial institutions to make financial transactions.
Ripple can process transactions in a few seconds because its one-of-a-kind validation process doesn’t require mining. Candidate transactions are validated by having designated servers compare and contrast records until they reach a supermajority agreement, declaring that consensus has been reached. By taking advantage of blockchain technology, the Ripple Network expertly reduces the number of intermediaries needed for SWIFT to work, so it’s a pioneering development when it comes to monetary transfers. If you want to avoid the high fees associated with networks like Bitcoin or Ethereum, use XRP. It’s very affordable as a consequence of the high number of tokens in circulation and the fact that many investors hold XRP.
Remittances
More often than not, migrants send home part of their earnings in the form of cash to support their families, and these transfers are referred to as remittances. There’s no real-time funds transfer. The balance owed by the sending agent to the paying agent is settled through a commercial bank. The XRP Ledger is available at any time, and every day, the cost of transacting is negligible, settlement is fast and full, and access is available to anyone with an Internet connection. Formerly, Ripple only served licensed financial institutions, whereas now, it serves enterprises and small and medium-sized companies.
Micropayments
Consumers are increasingly facing situations in which micropayment solutions could ease online purchases, but not many solutions of this type are available yet, except for XRP. XRP allows the transfer of very small amounts of value and provides a seamless end-user experience, which makes it a game-changer in the digital currency space. The cost of a standard XRP transaction is less than a cent, so it’s an attractive option for micropayments. Micropayments permit merchants to adopt new business models and allow customers to benefit from content produced by various sources.
It seems like the biggest barrier or obstacle is getting cryptocurrency in the wallet. You’ll need a valid ID and may be asked for proof of address when creating an account on a centralized exchange because such platforms are regularly targeted by fraudsters and criminals. Input the amount you want to spend in your local currency, and it will automatically be converted into XRP. Confirm your order, and that’s it. With XRP, you can make tiny digital payments to anyone worldwide without delays. As opposed to conventional banking services, XRP eliminates the middleman and maintains affordable transaction fees.
Smart Contracts
Smart contracts automatically execute all parts of an agreement and are stored on the blockchain. The code can be the sole manifestation of the arrangement between the parties, or it can complement a traditional text-based contract. Indeed, Ethereum pioneered smart contracts and remains the most popular choice among developers, but it’s not the only blockchain that has smart contracts. Ripple intends to introduce smart contract functionality to the XRP Ledger in 2025 to expand its functionality beyond transactions. The Ethereum Virtual Machine will become compatible with the XRP community, making it possible for developers to use familiar tools and programming languages.
For now, developers can deploy smart contracts made for Ethereum on the XRP Ledger, which work through conditionally held escrows. The user sets aside funds with an escrow to ensure they’re available to the recipient. The escrow held on the ledger has a condition attached to it, which serves as a lock on the funds, which means that the ledger doesn’t release the funds until a transaction with the corresponding fulfillment field is submitted. Smart contracts work well for detailed transactions with exchanges involving multiple parties, providing controlled access and a range of functions (i.e., updating state).
The Takeaway
XRP is just one of the many products created by Ripple to improve the efficiency of cross-border transactions, notably in the banking sector. Users can send any amount of cryptocurrency to another wallet without a third-party intermediary—XRP is faster and more convenient than other payment options. Individuals and businesses can send and receive money using their mobile devices or computers. Ripple’s legal battle with the Securities and Exchange Commission and macroeconomic conditions like high interest rates make it difficult to predict the future.