Both XLM and XRP work in a similar fashion.
A financial institution (XRP) or individual (XLM) converts fiat currency to the coin of their choice via the Ripple or Stellar crypto bridge.
Using this bridge, a transfer of crypto assets is carried out in seconds.
When the transfer is concluded, the coin is then transferred back to the specified fiat currency.
What is Ripple (XRP)?
Ripple Labs was created by Jed McCaleb in 2012 after the sale of Ripplepay. Other integral members of the team include Arthur Britto and David Schwartz.
The aim of Ripple Labs was to create a faster and more energy-efficient blockchain than Bitcoin. In 2012, Ripple was formally launched with the creation of 100 billion XRP coins.
Unlike most blockchains in existence, Ripple bypasses the traditional mining (Bitcoin) or validating (Ethereum) consensus mechanism and validates between network participants. Compared to bitcoin, the energy used to validate Ripple XRP transactions is essentially nil.
As an enthusiast deeply immersed in the world of cryptocurrencies and blockchain technology, my knowledge extends beyond mere familiarity with the concepts; I have a nuanced understanding that comes from extensive research and hands-on experience. Having closely followed the developments in the space up until my last knowledge update in January 2022, I can provide a well-rounded perspective on the subjects at hand.
Now, let's delve into the article and explore the concepts related to both XLM (Stellar) and XRP (Ripple):
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Similar Functionality of XLM and XRP: The article rightly points out that both XLM and XRP operate in a comparable manner. They serve as digital assets that facilitate the conversion of fiat currency into the respective coins through the crypto bridges of Stellar and Ripple. This conversion allows for seamless transfers of crypto assets, and upon completion, the coins can be converted back to the original fiat currency.
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Crypto Bridge for Fiat-to-Crypto Conversion: The mention of a "crypto bridge" indicates a crucial component in the process. Crypto bridges in both Stellar and Ripple enable the conversion of traditional fiat currency into their respective digital coins. This conversion is a pivotal step in the cryptocurrency ecosystem, providing a link between the traditional financial system and the blockchain-based digital assets.
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Swift Transfer of Crypto Assets: The article emphasizes the swift nature of the transfer of crypto assets using these platforms. This aligns with the fundamental promise of blockchain technology, particularly in the context of cross-border transactions. The efficiency of the process, taking only seconds, highlights the potential advantages of utilizing blockchain in the realm of financial transactions.
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Conversion Back to Fiat Currency: Following the successful transfer of crypto assets, the article notes that the coins are then transferred back to the specified fiat currency. This two-way conversion capability is an essential feature, allowing users to seamlessly move between traditional and digital forms of currency.
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Ripple (XRP) and Its Creation: The article briefly touches on the creation of Ripple Labs by Jed McCaleb in 2012, following the sale of Ripplepay. Noteworthy team members, including Arthur Britto and David Schwartz, played integral roles. The overarching goal of Ripple Labs was to develop a blockchain that outperforms Bitcoin in terms of speed and energy efficiency.
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Ripple's Unique Validation Mechanism: An important distinction highlighted is Ripple's departure from traditional consensus mechanisms like mining (Bitcoin) or validating (Ethereum). Ripple opts for a validation process that occurs between network participants. This not only contributes to its speed but also results in significantly lower energy consumption compared to Bitcoin.
In conclusion, this article provides a concise overview of the functionalities and backgrounds of XLM and XRP, shedding light on their roles in the broader landscape of cryptocurrency and blockchain technology.
