What Is Ripple (XRP) Cryptocurrency


What Is Ripple (XRP) Cryptocurrency

The first thing you should understand about what is Ripple is that it’s a platform and a cryptocurrency. The platform is an open-source protocol built to enable cheap and fast transactions. 

What Is Ripple (XRP) Cryptocurrency

To start off with, Ripple is both a platform and a virtual currency. The platform is part of an open-source protocol that was designed to ensure cheap and fast transactions. 

Ripple has its own digital currency (XRP), however, anyone can use RippleNet to create their own virtual currencies. 

Here we explain what is Ripple, how it solves problems, the differences between Ripple and XRP, the technology, development, partnerships and XRP price prediction. 

How to use a Ripple paper wallet is explained in this article.

Relationship and Difference Between Ripple and XRP

Garlinghouse and Larsen have been forced to explain whether Ripple and XRP are one and the same.

 Ripple Inc. and XRP are regarded by some to be separate entities, which is a consequence of numerous crypto analysts and market participants debating this topic.  

Technology company Ripple Inc. offers efficient solutions and platforms to financial companies for sending money globally.

 Ripple was founded early in 2012 and soon after released its Ripple Platform, real-time gross settlement system, remittance network and currency exchange. 

However, XRP is a cryptocurrency that is created on a decentralized and open-source blockchain. The cryptocurrency can be traded on various trading exchanges as an independent asset. 

Note: XRP is a digital asset, not a stock, so holding this digital asset is not like owning Ripple. 

Yet, their relationship remains unique. Ripple owns around 60% of the XRP tokens in supply. 

In contrast to most crypto companies that release large amounts of coins for sale, the coin’s CEO, Garlinghouse, claimed they gave the tokens as a gift to Ripple Inc. 

Team members developed a feature called xRapid for the platform, which incorporates XRP and the XRP ledger.

 A user on the platform can use this feature to reduce their fees and make payments around the world in real-time. The feature is illustrated in the figure below.

One key fact about this feature is that it’s not connected to the Ripple platform as a whole or even to a single entity, so it makes it impossible for claims that it’s centralized. 

Ripple has its headquarters in the United States and is headed by the Board of Directors, other shareholders, and founders. People are responsible for the business’ functions and operations. 

In contrast, XRP is not managed by a single entity. Rather, it is owned by a community of users who contribute to the coins’ success. Furthermore, this community creates solutions for the XRP ledger at will. 

Ripple Inc. is jointly owned by Brad Garlinghouse and Chris Larsen, the two majority shareholders. Larsen owns most of its shares (17%, 5.19 billion XRP tokens) and Garlinghouse has 3.3%. 

Ripple’s Opportunity 

The current state of global payment systems is quite dated.

 If you wish to transfer money to a relative in a different country, sending small amounts of money can take a long time, and may also require processing fees. 

Global payments technology is already here, so why does the sector lag so far behind? 

It’s no secret that financial institutions make billions of dollars on payment fees, and they’ve been trying to innovate systems that will always put money in their pockets. 

This is one of the main reasons why Ripple has developed a system that aims to work with the current financial system. 

The system is based on internet protocols that permit international Managing payments is the major source of revenue for financial institutions, and they have been trying to develop innovative systems that will keep them in the black.

More than a dozen banks have already adopted the platform in the United States, and it looks set to expand to the rest of the world soon. 

6 of the biggest banks started using Ripple. Others will follow. The system is integrated into the world’s financial system. It ties these systems together so they work more efficiently on one global network. 

According to Welly Sculley, the Director of Business Development, “Ripple is not meant to replace central banks or correspondent banks.” It’s a technology they can leverage to optimize their internal and cross-border functionality.

What is Ripple Net

Institutional payment providers, RippleNet, use solutions developed by Ripple to facilitate frictionless global financial transactions. 

To understand how this works, let’s first talk about RTGS and RTXP. 

Real-time gross settlement refers to a mechanism by which the transaction amount is determined in real time by the bitcoin price.

A gateway, which is a digital ledger containing a private blockchain, can be used to access Ripple.

 Companies, financial institutions, and governments can join the Ripple network through devices such as Ripple gateways.

 In the blockchain industry, Ripple Transaction Protocol (RTXP) is what is called RippleNet. 

The RippleNet enables businesses to interact with each other more efficiently, and at a significantly lower cost than traditional transactions. Furthermore, the RippleNet allows users to receive payments on any digital currency or fiat currency. 

RippleNet has functions of a currency exchange, despite needing to reserve liquidity first. With XRP, it provides the liquidity required by banks, payment providers, and market makers. 

xCurrent, xRapid and xVia

This software solution enables Ripple’s enterprise customers to instantly settle cross-border payments through end-to-end trading. 

Our software enables us to ensure that all of these transactions are legal and consistent, as well as ensuring that there is legal clarity on all of these deals. 

In the previous section, we have already explained what xRapid is. 


The xVia platform is part of the RippleNet platform and enables banks and other businesses to leverage the power of RippleNet to send and receive payments from emerging markets. 


Emerging markets will be able to take advantage of this development by transacting with global financial companies. 

The demand for financial services is increasing to meet the individual needs of consumers around the world, and any financial institution can respond to these demands by customizing its services and growing its business. 

These efforts put them in a position to scale their business rapidly, differentiate their service, and address the unique needs of their clients. 

Additionally, xVia helps financial institutions and corporate marketplaces expand their business by providing quick and easy-to-implement solutions. 

A bridge between large and small markets in global payments exists in this solution. With the xVia platform, global markets are expected to grow rapidly due to it being a convenient and affordable payment system for all. 

Ripple Protocol Consensus Algorithm 

Unlike Ethereum and Bitcoin, Ripple is decentralized, so transactions cannot be verified and secure. 

The RPCA steps in here. 

As a result, if all nodes agree we do not have issues. For instance, imagine an arena where the wisdom of 50 wise old men needs to be reached by a large majority in order for a city to make a controversial decision. 

Generally speaking, if everybody agrees to start a war, go on a march and punish an offender, it will be done. However, if everyone disagrees, it won’t be done. 

Ripple Partnerships 

Garlinghouse told Fortune that the media originally predicted no one would use XRP, making for good skeptical headlines. Using xRapid today is no longer a trend. People prefer it because it is cheaper, faster and better.”

Many major companies have joined forces with Ripple, among which are MoneyGram, SBI Remit, Axis Bank, MUFG Bank, Standard Chartered, BMO, Mercury FX, IDT, Euro Exim Bank sendFriend, WU, and others. 


Stellar is Ripple’s main competitor since it was founded by one of the Ripple’s co-founders, Jed McCaleb. He left Ripple in 2013, however, due to disagreements with team members. 

Despite the fact that Ripple is for profit, Stellar is non-profit, both platforms work to facilitate cross-border payments. 

Stellar’s overall mission is to enable banking to the unbanked, while Ripple’s target is to tackle major financial institutions. 

Ripple’s Decentralization Strategy 

As part of its decentralization strategy, Ripple expanded its value chain to 55 nodes by mid-2017. 

The Ripple network currently has approximately 26 nodes. However, only 7 of them are directly controlled by Ripple, meaning that the bulk are outside its control.

 The platform’s efforts to increase third-party nodes are evidence of its push towards greater decentralization. 

Is XRP a Good Investment? 

In any case, it is up to you to make a decision. However, let’s examine some benefits and drawbacks of XRP.


  1. Clearly, Ripple is trusted by many financial institutions. 
  2. There is no inflation to XRP as the initial coins are mined and already exist. 
  3. In addition, if all banks choose to use Ripple as a unified bank currency, there will be an increase in its value. 


  1. A cryptocurrency is supposed to work without central control which Ripple does. This means that those in control of the platform can decide when to launch Ripples and how much, controlling prices. 
  2. Ripple Labs, which owns 60%, therefore has a monopoly.



What Experts Think About Ripple’s Future

As the market witnesses more coins coded in XRP or other algorithms, it’s likely ETH will have to make way for the next big coin.

 As the markets digest this, I think 2021 is likely to be the close to the time that it occurs. Anything can happen though, so watch closely.

Where Can You Buy And Store XRP?

You can buy or sell on exchanges such as Kraken, Binance, and Bittrex. 

Buy XRP on Binance today!

Hardware wallets are safer than digital wallets because they are stored offline. Hardware wallets are recommended for larger transactions. 

Here is a list of the best XRP wallets.

Final Thoughts On Ripple

The Ripple Network is a very unique payment asset that serves as a currency and a platform. During the time when it was launched many famous individuals supported Ripple for its innovation and potential.

You should watch out for developments made by the Ripple Platform, even if you decide not to invest in XRP.

We reckon within the global payment systems, and may likely replace the old guard financial system. 

Despite its limited use by the average person, the platform has developed some of the world’s best solutions for better global transactions.

 When looking at Ripple through the lens of the global payments ecosystem, it’s the classic case of “established giant vs. high-tech upstart.” 



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