Over the last few years, various initiatives have emerged in Web3 to bolster user participation and interaction. However, the majority have been constrained to business models prioritizing the maximization of rewards, based on user behavior and risk, unveiling limitations in sustainability.
This year, however, has seen profound paradigm shifts aimed at achieving Web3 Mass Adoption in numerous Layer 1 and Layer 2 projects, which have previously reaped benefits or faced adversities. Currently, innovations led by Polygon, Solana, Arbitrum, OP, and BASE are at the forefront of this transformative journey.
This document intends to explore XRP, XRPL, and Ripple, focusing on the current era anticipating Web3 Mass Adoption, beyond the projects currently leading the way.
What are Ripple, XRP, and XRPL?
Typically, there is a tendency to synonymize Ripple, XRP, and XRPL. However, in a more meticulous differentiation, each represents a distinct concept. Ripple is the company, XRP is a commonly accepted digital asset, and XRPL is the public blockchain that operates on the foundation of XRP.
For whom and for what purpose is the blockchain?
XRPL operates as a public blockchain for businesses, working through a consensus agreement protocol with validators on its mainnet. Although the overall awareness of XRPL itself might be somewhat weak, over 6,000 developers, builders, and creators are already active, and it provides various services, including CBDCs based on XRPL, to over 300 clients.
Three Key Reasons to Focus on Ripple, XRP, XRPL
User Experience Driven by Necessity, Not Just Rewards
Most Web3 users with experience in transactions between exchanges have likely utilized XRP. Such usage, driven by actual need, is empowered by XRP’s abundant liquidity and low fees, not merely expanded rewards. This stands as a significant strength in user experience, holding a considerable edge when compared to other Layer 1 and Layer 2 projects.
Proven Potential through Diverse Cases
Notable entities like SBI, Kotak Mahindra, and CommBank are already well-known cases. In regions like Europe, the Middle East, and Africa, there’s been a realization of potential in financial areas through On-Demand Liquidity (ODL) and Central Bank Digital Currencies (CBDC), based on optimization and scalability.
Furthermore, in the near future, XRPL is expected to support EVM and Side-Chains, and if services compatible or interconnected with existing Layer 1 and Layer 2 networks emerge based on smart contracts, it holds promising utility beyond just the financial domain.
Advantageous Position in Securities Regulation Stress Test
In Web3, issues related to securities have remained a long-unresolved task. Ripple has been at the forefront, contesting the SEC regarding the status of securities. According to Ripple’s Q2 reports, the current main points of contention in legal judgments include:
The issuance and circulation process of XRP is not deemed a security.
The sale of XRP by Ripple through exchanges and by executives is not considered a security.
XRP granted to developers, charities, and employees is not regarded as a security.
On-chain data for Evaluating Ripple, XRP, XRPL
According to XRPSCAN data in 2023, the daily transaction count reached a yearly high of 2,359,386 on March 19, with 1,267,000 of those transactions being for payment purposes. However, on July 29, it recorded a yearly low of 612,623 transactions. Interestingly, within the same month of July, the daily creation of new wallets peaked, recording a yearly high of 6,207 new wallets on July 13.
Reference
XRP Ledger Korean Offical Developer Community
