Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012 and was co-founded by Chris Larsen and Jed McCaleb. The coin for the cryptocurrency is premined and labeled XRP.
XRP is a digital asset built for payments. It is the native digital asset on the XRP Ledger—an open-source, permissionless and decentralized blockchain technology that can settle transactions in 3-5 seconds.
What is XRP?
To begin with, it’s important to understand the difference between XRP, Ripple and RippleNet. XRP is the currency that runs on a digital payment platform called RippleNet, which is on top of a distributed ledger database called XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open-source and is not based on blockchain, but rather the previously mentioned distributed ledger database.
The RippleNet payment platform is a real-time gross settlement (RTGS) system that aims to enable instant monetary transactions globally. While XRP is the cryptocurrency native to the XRP Ledger, you can actually use any currency to transact on the platform.
RippleNet is a network of institutional payment-providers such as banks and money services businesses that use solutions developed by Ripple to provide a frictionless experience to send money globally. Moreover, the platform allows to make payments in any currency including Bitcoin and have a minimal internal transaction commission of $0.00001, yes that’s the right amount of zeros. The only reason it’s not free is to prevent DDos attacks.
How Is XRP Used?
XRP was created by Ripple to be a speedy, less costly and more scalable alternative to both other digital assets and existing monetary payment platforms like SWIFT.
RippleNet’s ledger is maintained by the global XRP Community, with Ripple the company as an active member. The XRP Ledger processes transactions roughly every 3-5 seconds, or whenever independent validator nodes come to a consensus on both the order and validity of XRP transactions — as opposed to proof-of-work mining like Bitcoin (BTC). Anyone can be a Ripple validator, and the list is currently made up of Ripple along with universities, financial institutions and others.
What Is Ripple Used For?
- Low commission currency exchange. There are many currencies that can’t be directly converted to each other. So, banks need to use the US dollar as a mediator.
- Fast international transactions. Average transaction time is 4 seconds
- Payment ecosystem. User can basically issue his own currency for fast and cheap transaction.
What Are Ripple’s Benefits?
- Ripple is originally designed as a day to day payment system, so it is much more powersafe than Bitcoin. As the results, the transactions are much quicker and cheaper
- Ripple has started as an official organization, as its main focus is to be used by banks. So it is not a subject of multiple regulation checks as many other cryptocurrencies.
- Ripple has the ability to be exchanged to any currency or valuable (like gold) with a unified minimal commission.
How Do You Buy XRP?
You can buy XRP on any exchange that offers the digital currency. For the latest list of exchanges and trading pairs for this cryptocurrency, click on our market pairs tab. Remember to do your own research before choosing an exchange!