Ripple’s XRP utility fork is coming, let’s learn more about it!
What is Ripple
XRP is a digital asset of the Ripple network. Ripple network is a platform that works as a provider of global payments. In this system XRP plays the role of a mediator for an exchange. With the help of XRP people are able to exchange different assets within the platform.
Ripple has a significant difference from famous Bitcoin. It does not work on a blockchain. It has its own Ripple Protocol Consensus Algorithm (RPCA). The most important feature of this system is the thing that all the decisions must be done in consensus.
Ripple’s utility fork
The Crypto World is facing a new event — Ripple’s utility fork. It is not a fork in general terms and we are going to provide more details about it in this article.
Ripple’s partner is the Flare Network. The Flare network team is using the XRP Ledger to increase XRP utility. So there is absolutely no conflict of interests. This utility fork will bring two networks together to give users even more opportunities. The XRP community actively supports an upcoming event.
The Flare network
The Flare network is a new network based on the Federated Byzantine Agreement (FBA). It claims to be the first complete network of this type. The Byzantine Agreement in general ensures a consensus for each decision. First of all, this increases the speed of transactions. Plus all types of vendors have the same opportunities. In the federated system each node can choose a group to take part in its decision-making process.
In other words, FBA is a type of scalable consensus protocol with an atypical security system. FBA puts the setting for the Avalanche protocol. The platform also has an integrated Ethereum Virtual Machine and will support smart contracts.
Spark is a native token of the Flare network. Unlike Ripple, the Flare network is based on a blockchain. This means that this token will serve as a bridge to the Ethereum blockchain.
The most important thing to know about Spark is that it does not serve a safety purpose. Nonetheless, there are several ways to use this token:
- as an asset that is accepted as loan security within applications;
- to govern separate elements that rely on it;
- as one of the contributors to an oracle providing on-chain time series data estimates.
Spark token is an essential part of the voting process. One Spark equals one vote. The number of tokens that are supposed to participate in the decision-making process is specified for different types of decisions. There are three types:
- a simple majority decision
- a super majority decision
- a super super majority decision
Spark token airdrop will take place on December 12th. It will happen with the support of Binance, CoinDCX, Bitstamp, Bitfinex, and other exchanges. For that matter, all kinds of transactions with XRP will be suspended until the airdrop snapshot is complete.
According to Binance, everyone who possesses more than 10 XRP will receive SPARK. Binance also revealed the formula that would be used to calculate the amount of SPARK: “User A = Amount of XRP held by User A at the time of snapshot / Total XRP held by Binance at the time of snapshot * Total SPARK received by Binance for the airdrop.”
Is XRP a good investment 2020?
As it was said above, the community seems to be very supportive of the upcoming event. This is reflected in the XRP price, which has increased by 118% from November 1 to November 30. It went from $0.246 to $0.541.
The quantity of transactions has also significantly increased. Ripple reports about almost a million transactions per day.
However, it is important not to get over-excited about the current price. It is highly possible for it to drop right after the fork. That prognosis can be seen on WalletInvestor.com. It shows a small rise in December and then we can see a downgoing trend.
Here some thoughts from the representatives of the crypto community on Twitter:
The Ripple utility fork definitely is an interesting development. It should give both platforms and their users some advantages. Since the mechanism of this fork is rather new, we hope we were able to explain at least some of it.
Thank you for your attention to this topic. SimpleSwap would like to remind you that this article has informational purposes only and does not provide advice on investment. All investments are your personal responsibility.