In 2012, an alternative to blockchain appeared in the cryptocurrency world – the distributed ledger protocol Ripple Consensus Ledger (RCL), later renamed XRP Ledger (XRPL). Based on the protocol, the RippleNet network and the XRP coin were launched.
What is XRP Ledger (XRPL)?
XRP Ledger (XRPL) is an open source distributed ledger protocol for real-time financial transactions. XRPL operates as a distributed economic system that stores user account information and provides currency exchange services. All transactions are protected by cryptographic methods and verified by network members.
Unlike Bitcoin, the XRP distributed ledger does not use the Proof-of-Work mechanism. Consensus is achieved using a customizable algorithm, formerly known as the Ripple Protocol Consensus Algorithm (RPCA).
XRPL operates a network of independent validating nodes that constantly verify transaction records. Consensus is reached if 80% of the nodes agree on the current state of the registry.
How XRPL is used?
RippleNet was built on top of the distributed ledger. The network was originally created as a tool to improve the existing financial system. Its main task is to provide efficient payment solutions for corporate clients.
In 2018, based on XRPL, the Sologenic platform was launched with its own SOLO coin. Now it is a fairly well-developed complex ecosystem with its own goals and specific features.
What is the difference between SOLO and XRP?
RippleNet is aimed at large financial institutions and serves as a link between different digital and fiat currencies. Quite simply, RippleNet opens the door for banks to the world of cryptocurrencies.
Sologenic also aims to combine traditional finance with blockchain, but its target audience is much wider. First of all, it is aimed at lowering entry barriers for all crypto-investors, institutional and individual.
In the Sologenic ecosystem, crypto investors can easily invest in various financial instruments and exchange digital assets. Sologenic simplifies the process of tokenizing traditional non-crypto and blockchain assets. These can be stocks, ETFs, precious metals and other commodities.
During the tokenization process, Sologenic creates stablecoins backed by real-life assets in a 1:1 ratio. That is, the owner of a stablecoin receives ownership of a real-life share, unit of goods or other security asset. After successful tokenization, the suffix Ƨ is added to the name of the asset.
Tokenized assets are traded on the Sologenic Decentralized Exchange (DEX).
Features and Functions of Coins in Networks
XRP serves solely to transfer value. A coin cannot be earned or mined, it can only be bought for the purpose of investment or for current needs. Coin holders do not have any special privileges. The emission of XRP is limited, that is, it is initially a deflationary asset.
The SOLO token gives holders the opportunity to directly access shares listed on more than 30 major exchanges from around the world. Stocks can be traded directly, without the use of intermediary services.
SOLO holders can get a free SOLO card and freely spend their crypto assets anywhere in the world where it is possible. SOLO Cards brings pleasant bonuses to its owners, in particular, monthly cashback, discounts on accommodation in some hotels and attendance at private events.
Token holders can join the Liquidity Provider Reward Program and receive up to 20% per annum. There are several such programs, with flexible and fixed deposit models. When comparing SOLO vs XRP, it is worth mentioning that Sologenic transaction fees are burned, that is, the network uses a deflationary mechanism and the number of tokens in circulation is gradually decreasing.
Which Coin to Choose For Investment?
When choosing a coin for investment, remember that cryptocurrencies are a game for a long time and with unpredictable results. Before investing, decide on the objectives of the investment and its timing. Explore the assets you are interested in yourself. And don’t invest more in cryptocurrency than you can lose relatively painlessly.
Cryptocurrency is one of the great investing platform with great returns. However, before investing into crypto, you have to do some research on that. As financially market is full with risks. This article is just for informational purposes. We are not responsible for any losses or damages.