Vaporware is a software product that has been announced but is yet to be released to the market. Announcing blockchain projects even before the product is ready is a common occurrence within the cryptocurrency space.
This guide focuses on a rather popular cryptocurrency company – Ripple – which has been in existence since 2012. We will consider whether it has launched its software solution yet and talk about the differences between Ripple and XRP.
Is XRP vaporware?
No, XRP is not vaporware. XRP is among a suite of products launched by fintech company Ripple that enable users to send and receive global payments seamlessly.
XRP is an essential liquidity solution within Ripple’s flagship payments solution, RippleNet.
RippleNet is a combination of three disparate products already in operation and used by some of the leading traditional financial institutions from more than 55 countries, including Bank of America, Santander, American Express, and Thailand’s Siam Commercial Bank.
The three products are:
- xCurrent: Built on a distributed ledger called InterLedger with the purpose of providing interoperability amongst various national currencies and cryptocurrencies. InterLedger is not a blockchain, and it is different from the XRP Ledger, which we will discuss later;
- xRapid: This product is a subset of the xCurrent that uses XRP to transfer value globally. XRP has several advantages over other assets, including national currencies and crypto such as Bitcoin or Ethereum. It is cheaper to use and faster to settle over the XRP Ledger;
- xVia – this is the interface on top of which xCurrent and xRapid can be used, making it easier to interact and navigate the two applications. It is also a communication channel similar to how SWIFT connects various traditional financial institutions to facilitate value transfer.
Previously, all three products – xCurrent, xRapid, and xVia – were separate until 2019, when Ripple opted to merge them into RippleNet for easier packaging.
The XRP Ledger is a blockchain solution for digital payments the same way that Bitcoin works except, with the former, it is much faster, cheaper, and more eco-friendly thanks to the proprietary XRP Consensus Protocol.
The blockchain was launched in 2012, by which time the Ripple company had already created 100 Billion XRP coins, the max supply of the coin.
Also read: Is Tron A Vaporware?
What is XRP used for?
Ripple’s XRP has one purpose: to facilitate global payments through a digital medium.
Unlike some other cryptocurrencies, such as Bitcoin, which were created to displace the conventional financial systems, Ripple aims to use XRP to complement these same systems.
It doesn’t want to replace the conventional institutions but instead looks to modernize them, making them cheaper, faster, and more fluid ways to settle global payment obligations.
However, just like these other cryptocurrencies, XRP can also be sent and received as a means of value transfer for retail users or even stored in a crypto wallet. Speculators can also trade XRP on platforms that support the asset.
Also read: Is XRP Eco Friendly?
Is XRP still viable?
Yes, XRP is a viable option, especially for those looking to transfer value globally, traditional financial institutions and retail users seeking remittance services or making and receiving payment for freelance services.
XRP is not only an excellent digital peer-to-peer payment option like Bitcoin, it is better than Bitcoin in so many ways.
Transactions on the XRP Ledger are cheaper and faster, with blocks produced every 3-5 seconds compared to Bitcoin’s 10 minutes. Its consensus protocol is more energy-efficient than Bitcoin’s mining protocol making it more eco-friendly.
Can XRP be worthless?
Yes, XRP can be worthless. In fact, any asset can be considered worthless if enough people deem it so. An asset is considered valuable if users agree that it has value and can use it for various purposes, such as in XRP’s case, used for digital payments.
If XRP’s demand falls, its price will follow suit, and if no one wants to use it completely, then the asset’s price will reach $0; thus, it will be worthless.
Also read: Is (ADA) Cardano Vaporware?
Why is Ripple so cheap?
Ripple’s XRP tokens are relatively cheap compared to other prominent cryptocurrencies such as Bitcoin and Ethereum.
XRP is so cheap because there are billions of tokens in circulation compared to other assets. According to the law of demand and supply, the higher the supply of an asset, the lower its price will be.
Are Ripple and XRP the same?
No, Ripple and XRP are different things. Ripple is the Fintech company that is responsible for the development and maintenance of the XRP Ledger on which the XRP cryptocurrency runs.
Therefore, to differentiate the two, Ripple is a company while XRP is a cryptocurrency.
Why is XRP so volatile?
All cryptocurrencies, including XRP, experience extreme price movements regularly. This is because the digital asset market is still growing, but with a small market capitalization, it is easy for large investors to make trades that cause price movements.
Additionally, the overall crypto market is prone to FUD (fear, uncertainty, and doubt) caused by manipulative media sources. Because the space is largely unregulated, it makes it easier for rogue players to use media to manipulate various asset prices.
Is Ripple like Bitcoin?
In some aspects, XRP is similar to Bitcoin, but in most, the two digital assets are very different.
For a start, XRP and Bitcoin are both cryptocurrencies meaning they rely on cryptography to ensure security, and they can be used to transfer value; hence they are considered currencies.
On the flip side, however, the two are different in the following ways:
- Bitcoin uses Proof of Work (PoW) mining while XRP uses the proprietary XRP consensus mechanism;
- There is 21-million limit on the supply for Bitcoin while XRP has a total supply of 100 Billion coins;
- XRP is highly reliant on its parent company Ripple which develops and maintains the source code while Bitcoin is highly decentralized relying on the community for its maintenance and improvement.
Ripple has been in existence for a long time making XRP one of the oldest cryptocurrencies in existence today.
Since 2012, Ripple has continually iterated and improved it as well as other complementary financial products making XRP more valuable not just within the blockchain space but also within the traditional financial sector.