Why RaiBlocks (XRB) is going up right now
The altcoin has gone up over 40% in the last two days, almost back to its all-time high.
RaiBlocks (XRB) is sitting above US$17 again for the first time in a couple of weeks, currently at US$18.70, up from US$12.45 just a few days ago.
Trade volume for RaiBlocks in the past 24 hours has been over US$28 million, acccording to CoinMarketCap, and its market cap sits at US$2.5 billion. This has happened without XRB only being listed on a few exchanges, with the largest of those being KuCoin.
Why has the price been going up?
This is the second price pump that RaiBlocks has had in the past month. The first one appeared due to a number of factors including the ending of its faucet distribution, which meant that there were no longer any ways to get RaiBlocks for free.
The price movement at the moment might largely be due the the fact that RaiBlocks is imminently going to be listed on Binance, one of the largest crypto exchanges in the world, raising its exposure massively. RaiBlocks won the community coin of the month by a good margin on Binance recently, and is expected to be listed on the exchange by the end of the week.
RaiBlocks has a reputation for being a bit complicated for exchanges to integrate, which initially raised some concerns after the listing on Binance felt delayed. However RaiBlocks developers confirmed last week that the stress testing all went through without a hitch.
How RaiBlocks works
Bitcoin's biggest problem is that it can't keep up with the sheer volume of transactions, as it's limited to how many it can process at a time. This results in transaction times that can take hours and have fees of up to $15. This has meant that Bitcoin is becoming an unviable currency to use to make purchases.
RaiBlocks focuses on these issues with near instant transactions and zero fees. It does this by being the kind of anti-Bitcoin, with individual blockchains rather than one large blockchain-based network.
In RaiBlocks, each account has its own blockchain, and each block that is sent through that has just the one transaction. When you send XRB, two transactions are required : a send transaction that deducts the balance from the sender and a receive confirmation by the recipient. Think of it like the two ticks you see when you send a WhatsApp message, one tick when you have sent it, and a second tick when your recipient confirms the message has been received.
To avoid needing to use a wider blockchain network to verify transactions, RaiBlocks sends have to reference the previous transaction of the owner's block.
As a result of this, RaiBlocks can have infinite scaling, solving the biggest problem for cryptocurrencies at the moment.