XRP

By Aleksandra Wilson
2 min read July 23, 2021

First of all, it is important to differentiate between Ripple, XRP, and RippleNet. The currency that runs on RippleNet, the digital payment platform, is called XRP. It is on top of a distributed ledger database known as XRP Ledger. The company called Ripple controls RippleNet. The XRP Ledger is not based on blockchain but rather runs on the distributed ledger database. The RippleNet payment platform facilitates instant global payments. Even though XRP is native to the XRP Ledger, one can transact on the platform using any currency. Ripple’s main function is a payment settlement asset exchange and remittance system. 

The inception of the Ripple payment platform took place in 2004; the platform was introduced by Ryan Fugger. In 2012 the project was taken over by Chris Larson and Jed McCaleb, and it was priorly called OpenCoin. 

Ripple runs on a peer-to-peer open-source decentralized platform that facilitates seamless money transfers. This global payments network has major banks and financial services among its customers. XRP is used to allow quick conversions between different currencies. Ripple created XRP to be a prompt, more affordable, and scalable analog to other digital assets and payment platforms like Swift. The global XRP community together with the Ripple company maintains XRP Ledger. The transactions on XRP Ledger are conducted every 3-5 seconds. 

XRP is a bridge currency to other monetary units. There is no discrimination between XRP and fiat or crypto currencies. The drawbacks of traditional banks are mitigated by Ripple. For instance, a wire transfer can take days or weeks, while with Ripple transactions can be carried out almost instantaneously. Also, the fees to conduct transactions are minimal, a fee for a standard transaction amounts to 0.00001 XRP, which is negligible compared to the high fees banks charge.

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