Crypto Project Reviews

Altcoinist Review | XRP: Global Money

July 1, 2024

Project Overview

  • Inception: Ripple was established in 2012 by three engineers - David Schwartz, Jed McCaleb, and Arthur Britto. Later, they were joined by Chris Larsen to form the company that is now known as Ripple.
  • Technology: Ripple operates on a blockchain that uses a consensus protocol for verification, allowing for faster and more secure transactions than traditional Proof of Work (PoW) or Proof of Stake (PoS) mechanisms.
  • Digital Asset: XRP is a bridge currency for value transfers on Ripple Network.
  • Global Transactions: Ripple focuses on efficient cross-border transactions.
  • Cost Efficiency: Ripple provides incredibly low-cost transactions.
  • Scalability: Ripple supports higher transaction volumes per second than many blockchains.
  • Interledger Protocol: Utilized for connecting global bank systems, using XRP as a standard settlement layer.
  • Partnerships: 300 payment leaders across 45 different countries
  • Market size: Global cross-border payments could hit $156 trillion by 2030
  • Regulatory Challenges: Ripple is currently facing an SEC lawsuit.
  • Future Plans: Ripple aims to establish a global liquidity hub using XRP's liquidity network.


Ripple (XRP) is a digital payment protocol that is transforming the global financial landscape. Co-founded in 2012 by Chris Larsen and Jed McCaleb, Ripple focuses on enabling swift, cost-effective, and reliable cross-border money transfers. With over 300 global financial partners, Ripple has firmly positioned itself as a top player in the cryptocurrency world.

Problem Statement

Our current financial system is fraught with challenges, particularly when it comes to international money transfers, which are notoriously slow, expensive, and lack transparency. This problem is especially prominent in the remittance sector, where migrant workers send money back home. These inefficiencies pose significant challenges for individuals and economies, especially in low and middle-income countries where remittances account for over 5% of GDP.

The Innovative Solution

Ripple leverages blockchain technology to provide a trustless, direct way of moving value over the Internet without the involvement of traditional banks, utility companies, and governments. $XRP, Ripple's native digital token, eliminates middleman fees and transfer delays.

RippleNet, the global payments network, connects different financial institutions, fostering seamless money transfers.

Its On-Demand Liquidity (ODL) service uses XRP as a bridge currency, promoting real-time, low-cost international transfers. This feature negates the need for institutions to pre-fund nostro accounts, reducing operational costs and freeing up capital.

Additionally, Ripple's xCurrent and xVia technologies enhance transaction transparency and accessibility. Ripple aims to revolutionize the remittance landscape and increase financial inclusion globally through these technologies.

Ripple's Advantages

Ripple's XRP ledger, created in 2012 by three engineers, offers several benefits:

  • Global reach with fees that are mere fractions of a penny, saving billions in fees worldwide.
  • Eliminates the 6% fail rate on transactions associated with the SWIFT system.
  • Operates on a consensus protocol among 150+ validator nodes.
  • Deflationary tokenomics.
  • Carbon-neutral operation as there is no mining involved.
  • Zero downtime since its creation in 2012.
  • Working with regulators and over 40 banks.

The Internet of Value

The "Internet of Value" is a concept that envisions a world in which money can move as freely and quickly as information does today on the Internet. This principle aims to eradicate the barriers that exist in today's fragmented financial systems and create a seamless, frictionless network where every kind of value - from money to commodities to digital assets - can be exchanged and transferred instantaneously across the globe.

Here's why it's important:

  1. Global Inclusion: An Internet of Value can foster financial inclusion by giving access to digital financial services to billions of people worldwide who are currently unbanked or underbanked.
  2. Efficiency: It could significantly streamline global remittances, cross-border payments, and microtransactions by eliminating intermediaries, reducing transaction times, and lowering costs.
  3. Interoperability: It promises interoperability between different forms of value (different currencies, assets, etc.), thereby fostering a more open and interconnected global economy.
  4. Innovation and Economic Growth: By enabling the seamless exchange of value, it can open new markets, create new business models, and stimulate economic growth.

Now, let's consider how much larger a global Internet market could be. The global remittance market alone is estimated to be around $700 billion annually. According to McKinsey, this is a fraction of the total global payments industry, which was worth over $2 trillion in 2019.

However, these numbers capture only the current size of financial transactions. When considering the Internet of Value, one must also account for new markets and business opportunities that could be unlocked. This includes everything from micropayments for online content to international peer-to-peer lending, to decentralized finance (DeFi) applications.

Moreover, as we move into an increasingly digitized economy, with the rise of digital assets and tokenized forms of value (such as NFTs, tokenized real estate, and digital collectibles), the potential market for the Internet of Value could expand even further.

Ripple and XRP help create an Internet of Value for the world, allowing the movement of monetary value on the Internet, akin to how an email operates. This makes the XRP ledger an efficient engine for the global monetary system that runs 24/7, 365 days a year.

Interledger Protocol

XRP plays a vital role in the Interledger Protocol (ILP), which is used to connect banking systems across borders. Here, XRP serves as a standardized settlement layer between global banks.

Ripple Liquidity Hub

Ripple's XRP Liquidity Hub is an innovative product designed to enable financial institutions to offer their end customers the ability to buy, sell, and hold digital assets. This infrastructure solution presents a major step towards leveraging the power of digital assets and blockchain technology in the financial industry.

Here's what you need to know about the XRP Liquidity Hub:

  1. Seamless Integration: The XRP Liquidity Hub is designed to be easily integrated into the existing systems of financial institutions. This feature reduces the technological and regulatory complexity involved in building a separate infrastructure for digital asset management.
  2. Wide Range of Assets: Although its name is derived from XRP, Ripple's native cryptocurrency, the XRP Liquidity Hub supports a range of cryptocurrencies. This includes Bitcoin, Ethereum, and other popular digital assets, allowing users to diversify their holdings.
  3. Liquidity Provision: A key feature of the XRP Liquidity Hub is that it provides users with access to deep liquidity from various markets. This allows for efficient price discovery and minimal slippage on trades, even for large orders.
  4. Dynamic Inventory Management: The XRP Liquidity Hub uses smart order routing and automated inventory rebalancing to optimize digital asset holdings. This ensures a steady supply of digital assets to meet customer demand while minimizing the risk of price volatility for the institution.
  5. Regulatory Compliance: Ripple emphasizes that the XRP Liquidity Hub is built with compliance in mind. The solution includes features for risk management, identity verification, and transaction monitoring to help institutions comply with regulatory requirements in their jurisdiction.

By providing a user-friendly, secure, and efficient way for financial institutions to offer digital asset services, the XRP Liquidity Hub is poised to drive mainstream adoption of cryptocurrencies and to enable the seamless integration of digital assets into everyday financial services.

XRP Tokenomics and Utility
  • Founding and Distribution: The XRP Ledger and its native cryptocurrency, XRP, were launched in 2012 by developers David Schwartz, Jed McCaleb, and Arthur Britto. Upon its creation, a fixed supply of 100 billion XRP was made. The architects of the XRP Ledger gifted a significant portion of 80 billion XRP to Ripple for the purpose of fostering use cases around the digital asset.
  • Escrow Account: To ensure market stability, Ripple placed 55 billion XRP into a cryptographically-secured escrow account, thereby allowing anyone to mathematically verify the maximum supply of XRP that can enter the market.
  • Deflationary Mechanism: XRP's deflationary nature means that with each transaction, a tiny amount of XRP is burned as a fee, gradually decreasing the total supply over time.
  • Speed and Scalability: Transactions on the XRP Ledger are swift, typically settling within 3-5 seconds. The XRP Ledger can consistently handle 1,500 transactions per second, 24x7, and there have been 70 million closed ledgers since its inception in 2012.
  • Low Cost: Transaction fees on the XRP Ledger are minimal, averaging around $0.0002 per transaction, thus making XRP a cost-effective medium of exchange.
  • Sustainability: The XRP Ledger operates on a consensus protocol, which is 61,000 times more energy-efficient than proof-of-work blockchains.
  • Decentralization and Security: The XRP Ledger is decentralized and secured by a global network of over 150 validators, ensuring diverse participation and consensus among various market participants.
  • Market Data and Transparency: Ripple actively shares market data regarding XRP and remains transparent about quarterly sales and escrow activity.
  • Market Statistics: As of the given date, the market cap of XRP stands at approximately $34.87 billion, with a 24-hour trading volume of around $1.05 billion. The total supply is close to its max supply of 100 billion, with 52.74 billion XRP in circulation.
  • Utility: XRP plays a crucial role in Ripple's payment ecosystem. It is used by institutions for fast, low-cost cross-border transfers, and it is an integral part of Ripple's On-Demand Liquidity (ODL) service. It can also be used as a store of value or an investment.

The unique blend of XRP's fixed supply, deflationary nature, transparency, speed, and low transaction cost makes it an interesting digital asset in the cryptocurrency space.

Ripple Team

Ripple is led by a highly experienced team of professionals in the fields of technology, finance, and blockchain. Here are some key team members:
  1. Brad Garlinghouse: He is the current CEO of Ripple. Garlinghouse has a rich career history, having held executive roles at AOL and Yahoo.
  2. David Schwartz: Serving as the Chief Technology Officer (CTO), Schwartz is one of the original architects of the XRP Ledger. His deep understanding of blockchain and cryptography are integral to Ripple's technological drive.
  3. Chris Larsen: Co-founder of Ripple, Larsen is currently the Executive Chairman of Ripple's board of directors. He was the CEO until the end of 2016. Larsen is a well-known figure in the fintech industry, having previously co-founded E-LOAN, a pioneering online lending platform, and Prosper, a peer-to-peer lending marketplace.
  4. Stu Alderoty: As General Counsel, Alderoty leads Ripple’s legal, Government Relations, Compliance, and Risk teams. He brings more than 30 years of legal experience with expertise in banking regulatory affairs and complex litigation.
  5. Monica Long: Monica is the General Manager of RippleX. She has been with Ripple since 2013 and has a deep understanding of Ripple's mission and the potential of XRP to create an Internet of Value.
  6. Eric van Miltenburg: As the SVP of Global Operations, Eric manages Ripple's international offices and is responsible for the strategic growth, operations, and business development of the company.

This team, backed by several other talented individuals, works diligently to realize Ripple's vision of enabling the world to move value as seamlessly as information is moved today.

Legal Challenges

Currently, Ripple is engaged in a lawsuit with the SEC for allegedly selling "unregistered securities." However, Ripple has been seeking regulatory clarity for years, an aspect where the SEC has only provided guidance for Bitcoin and Ethereum thus far.

Market Potential

Global cross-border payments stand at approximately $30 trillion per year. If Ripple captures even 5% of the remittance market settled on the ledger, that equates to a staggering 1.5 trillion dollars. This potential is particularly impressive, considering the current market cap of XRP is only $34 billion.

Cryptosniper's prediction from 4 months ago: $XRP price could jump 33x!


Ripple's vision, strategic partnerships, and innovative technology make it a unique contender in the cryptocurrency market. Despite its legal battles, Ripple continues to push boundaries, endeavoring to create a more efficient and frictionless global financial system. With its potential largely untapped, Ripple presents an intriguing prospect for the future of digital finance.