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Contrary to what most people would think, the Ripple Consensus ledger can be used for ICO purposes as well. Very few people assumed this was possible, yet it appears the technology lends itself to doing so. A step by step guide has been posted explaining how all of this works. It is an interesting concept, albeit it remains to be seen if anyone will use RCL for this purpose.

It is quite interesting to learn what the Ripple Consensus Ledger is capable of. A lot of cryptocurrency enthusiasts have such a blind hate for Ripple, they disregard the technology as well. That is rather strange, considering RCl has a few tricks up its sleeve. For example, one could host an ICO on the Ripple blockchain without too many issues.

Ripple Consensus Ledger and ICOs

To put this into perspective, the only thing one could issue are IOUs. Then again, most ICOs are IOUs as well, despite them being labeled as tokens. A token is nothing more than a promise for dividends, revenue, or making a project succeed. In this regard, one could use the Ripple Consensus Ledger to achieve this goal as well.  In fact, it is rather straightforward to do so, according to this guide.

As one would expect, the IOUs can be hardcapped. All it takes is one simple command to make it happen. Using this method also ensures no one else can modify the supply, which is quite significant.   One downside to using the Ripple Consensus Ledger for an ICO is how there is no “automated’ contract taking care of everything. Users can see the created tokens on the ledger with relative ease, though. It is evident there is some merit to using this method.

One thing that could be a downside is how this method only seems to work by using the XRP token. Considering there are quite a few of these tokens in circulation, obtaining them is relatively easy. The bigger question is how ICOs would affect the digital asset’s price, though. It is possible Ripple-based ICOs can become a real trend. Only time will tell how things can evolve in this regard.

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About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.