Even though many people have strong opinions about Ripple as a company, its underpinning technology has tremendous potential. Its XRP Ledger is a powerful tool for anyone looking to issue tokens on it. More specifically, there are over 5,500 tokens on this ledger today, creating a rather complex ecosystem.
The XRP Ledger Keeps Growing
Most people are familiar with the XRP Ledger as a solution that will help Ripple promote the use of its XRP asset. Although that is one of the potential use cases, it is also a ledger where developers can issue new tokens for particular purposes. Per Xumm, there are now over 5,500 tokens on this ledger, issued by 3,919 individual accounts. Very impressive statistics given the current stigma surrounding everything regarding Ripple.
It is not entirely abnormal to see multiple accounts issue different tokens. GateHub, for example, has multiple currencies, including the USD and EUR for trading on Bitstamp. It is great to see teams explore the different options at their disposal to make this ledger and the broader industry more appealing. Exploring the various infrastructure options is a crucial aspect of achieving that goal.
Not all these tokens on the XRP Ledger will amount to much over time. A fair few of them will be experimental if nothing else, but that is promising either way. Ripple’s ledger can be a viable solution for global payments and other transactions, as shown through XRP itself. However, there are opportunities for other tokens to explore in this setting.
What is interesting is how every token has its own number of trust lines. Trust Lines are essential to indicate overall popularity and trust in a particular asset on this ledger. GateHub holds four spots in the top five, whereas other entries include RippleChina, CasinoCoin, Ripple Fox, and so forth. For those unaware, CasinoCoin migrated to XRPL a while ago due to better scaling and much lower fees, among other reasons.
An Easy Token Creation Process
Like other blockchains allowing users to create tokens for various purposes, the XRP Ledger is relatively straightforward to use. Although it is advisable not to create too many meme currencies or tokens with no intrinsic value, anything is possible when using this infrastructure. Creating a token is only the first step toward making a long-term impact in this industry, however.
It is worth noting that the creation of a token on XRP Ledger is not free.. Users need to pay 5 XRP for creating the token and their initial issuing to one other account. After that, every future transfer will be free of charge. At the current XRP price, this cost is more than manageable, as it costs less than $2 to use this service. That is cheaper than most other blockchains, including Ethereum.
Establishing TrustLines is essential in this ecosystem. Every TrustLine is created from the recipient of a token transfer. Moreover, this process adds 5 XRP to the recipient’s account reserve. After the payment is completed, the user has 24 hours to create their Token. Failing to meet this deadline will result in paying the same fees again. An interesting approach to avoiding mass token creation.