XRP (XRP)
Ripple is a digital payment protocol and cryptocurrency platform that facilitates global financial transactions. The platform's native cryptocurrency is known as XRP. Ripple aims to enable instant, secure, and low-cost international payments.
The Ripple protocol
Ripple operates on a distributed ledger network, which is a decentralized platform that requires various parties to validate transactions. This model eliminates the need for a central authority, allowing for faster and more cost-effective transactions. Unlike many other cryptocurrencies, XRP transfers are nearly instantaneous and do not require a typical confirmation time.
| Ticker | XRP |
| Category | Cryptocurrency |
| Website | https://ripple.com/currency/ |
| @Ripple | |
| https://www.reddit.com/r/ripple |
How Ripple differs from other cryptocurrencies
Ripple is distinct from other cryptocurrencies in several key ways:
Centralization: Ripple was founded by a single company, Ripple Labs, and is still largely backed by it. This is in contrast to cryptocurrencies like Bitcoin, which are developed by a decentralized network of developers.
Token supply: Ripple was created with a fixed supply of 100 billion XRP tokens. This differs from Bitcoin, which has a capped supply that increases over time, and Ethereum, which theoretically has no supply limit.
Ownership: A significant portion of XRP tokens—around 60 billion—are owned and held by Ripple Labs. The company holds 55 billion XRP in an escrow account, allowing it to release up to a billion XRP per month for funding new projects and acquisitions.
Ripple's role in banking
Ripple Labs is focused on leveraging XRP technology to enhance banking transactions globally. Unlike other cryptocurrencies that aim to separate financial transactions from traditional financial systems, Ripple seeks to integrate with them. This approach allows Ripple to provide financial institutions with a tool for faster and more efficient cross-border payments.