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Unlike cryptos added to CoinGate’s listing earlier, XRP is not logged on the blockchain, as CoinGate launched an XRP ledger validator to “further accelerate the decentralization of the $XRP network”.
Crypto payment processor CoinGate has announced it will support XRP payments for merchants. The news has been revealed on the company’s Twitter account. Now, customers are able to use the second largest digital currency by volume as a means of payment at more than 4,500 shops online.
As the CoinGate’s blog post reads, such a decision stems from the popular demand by the XRP community. The company said:
“We are happy to cater to the huge XRP community and vastly expand the use cases of this digital asset. By being one of the first payment gateways that process XRP natively, we hope to significantly boost its utility. For our merchants, it is also quite a huge deal as currently, XRP falls into a category of the largest cryptocurrency markets according to capitalization. Hence, it makes us confident that this integration will definitely bring more customers to our merchants rather soon.”
XRP supporters were quick to react to the news, and their response was very positive.
A Twitter user wrote:
“Fantastic! Our company will sign up so we can accept xrp payments. XRP is the only coin we will accept.”
It is notable that unlike the cryptos that have been added to CoinGate’s listing earlier, XRP is not logged on the blockchain, as CoinGate launched an XRP ledger validator to “further accelerate the decentralization of the $XRP network”.
As the CoinGate team said, they have faith in Ripple and the technology they develop. As CoinGate said, it is no surprise that payments made in XRP settle in just 4 seconds, while the whole network is capable of sustaining +1,500 transactions per second.
The company further said:
“But what is more important is that the payments with XRP cost less than a fraction of penny – $0.00001, to be exact. The excellent performance and undeniable convenience make the ledger a sound tool for executing casual payments globally. That is the main reason why we chose XRP for our next big step in development. With us launching the XRP support, we open up opportunities for XRP to reach far outside its own ecosystem into bigger markets. At the same time, it allows the community to utilize the token in more ways than ever before.”
For Ripple, CoinGate’s support is also very important.
Stefan Thoman, a spokesperson for XRP commented:
“We need to diversify the validator ecosystem to further increase resiliency and robustness. We believe these efforts will lead to XRP becoming globally adopted as the digital asset for payments.”
To promote the adoption of XRP payments, CoinGate announced a $300 million Accelerator Program.
CoinGate and Lightning Network
CoinGate is a payment gateway for blockchain payments. Established in 2014, CoinGate provides a reliable payments infrastructure that caters for the needs of both merchants and their customers: accessible, convenient and customer oriented. CoinGate aims at bridging the gap between cryptocurrency owners, who are looking for ways to use their coins for purchasing goods and services, and merchants, that can easily utilize the benefits of blockchain to grow their businesses.
In September last year, CoinGate started a pilot program getting 100 merchants onboard to test its Lightning-enabled payment services. Lightning Network, a scalability solution for Bitcoin, allows transactions to switch back and forth before adding to the blockchain, which helps to reduce the network congestion taking place on the Bitcoin network. The basic aim of Lightning Network is to keep the costs low and increase transaction speeds while accommodating more investors on the Bitcoin blockchain.
Prospects of XRP in Japan
XRP, independent digital asset, native to the Ripple Consensus Ledger, has experienced both ups and downs last year, as the crypto market had some hard times. However, the bearish situation did not influence the success of Ripple’s collaborations with prominent companies. And in 2019, XRP may see another successful partnership, as Japanese SBI Group is considering variants to develop a project for R3 in the framework of which XRP will be used more extensively. In November, the company entered into negotiations on the matter.
* To learn more about XRP coin, Ripple company, and their innovative solutions, please check out our awesome guide.