A lot of talk in Ripple Blockstars Podcast recently is about How Bitcoin’s Limitations Inspired the XRP ledger. Those who are new to crypto-currency will be able to get clarity about the entire evolution process leading to the XRP ledger.
Also doing the rounds are talks about the importance of liquidity, which is important to exchange any asset quickly and cost effectively. There is a lot of realization as to how it is important to provide education around the fundamentals related to liquidity and its importance in the global markets.
Ripple insights expressed, “Liquidity around the digital asset XRP is the lifeblood of Ripple’s On-Demand Liquidity (ODL) for cross-border payments. XRP can be sent directly, quickly and cheaply, without needing a central intermediary, making it a convenient instrument in bridging two different currencies quickly and efficiently. As a bridging tool in ODL, the greater the liquidity of XRP, the less cost and risk in each transaction.”
The more XRP gets traded, the more liquid it becomes. Thus, solidifying its application in the cycle of “utility, trading and liquidity.”
The growth for XRP liquidity is expected to come from the emerging cross-border payment corridors and the ODL partner exchanges, which in turn create a demand for new XRP currency pairs, eventually set to improve on the trading volume and furthering the ability to trade between assets.
Sydney Ifergan, the crypto expert tweeted: “Ripple (XRP) has a good market health as it finds continuous usage in the ODL market. It solves a lot of value transfer problems and establishing well as a global payment asset.”
The cost of remittance will keep going down with the increase in the volume.
Ripple have been recently thinking deep about the environmental impact of cryptocurrency mining and the related consensus. Ripple expresses that discussing sustainability is the most important yet most avoided topic.
The amount of energy consumed by digital assets varies between the different types of crypto. For instance, in the case of PoW mining several hundreds of computers work round the clock to solve cryptographic puzzles and the amount of energy consumed in the process is huge. There is a need for more sustainable practices.
XRP was designed taking in to consideration sustainability and therefore is an inherently green currency. There are no unsustainable mining practices used by XRP. There is also a recent Ripple’s Block Stars podcast on why XRP is one of the most eco-friendly currency options available today.
Get the latest Crypto & Blockchain News in your inbox.