What is Ripple XRP? – A Deep-Dive

So, what exactly is Ripple XRP? XRP can be used like any other digital currency, either for transactions or as a potential investment. The Ripple network can be used to process other types of transactions, like exchanging currencies.  

Ripple – In a Nutshell

Ripple is a money transfer network designed to serve the needs of the financial industry. 

XRP is a cryptocurrency created to work on the Ripple Network. In terms of market capitalization, XRP is consistently listed as one of the top five cryptos by market capitalization. 
Ripple products are used for: payment settlement, asset exchange, and remittance systems. 
Ripple, unfortunately, remains embroiled in legal troubles with the SEC. They has been caught in a high-stakes legal battles with the SEC since last year. As some call for a crypto ban, Ripple’s CEO Brad Garlinghouse says the lack of clarity in U.S. regulation of digital assets compared to other developed nations is a big part of the problem. 

XRP is the digital asset of Ripple.  

For those that do not know, Ripple is a leading global enterprise payments blockchain company globally positioned to provide three main products (xCurrent, xRapid, and xVia) through a single integration across a connected network of financial institutions and payment providers: altogether forming the RippleNet ecosystem. 

xVia – Introducing Blockchain to Finance

Consider xVia as the gateway to RippleNet.  

xVia enables payment originators and corporates to access the power of RippleNet, with a single, standardized API that provides a frictionless experience to communicate with your banking partners. It’s simple API requires no software installation and enables users to seamlessly send payments globally with transparency into the payment status and with rich information, like invoices, attached.  

It’s easy to mistake the xCurrent and xRapid products. Here’s why: 

xCurrent: a bi-directional messaging protocol streamlining the transfer of money is a product used by banks enabling inter-operations between different ledgers and networks. xRapid is a product strongly connected to XRP. XRP (or) the xRapid Protocol is a liquidity solution for banks, it uses XRP as a bridge currency between fiat and other currencies to ‘source liquidity’ for making the transfers between banks. To make it easier to differentiate between them, lets address xRapid as “On-Demand-Liquidity (ODL).”  

Ripple is a payment settlement system and exchange network that processes transactions around the world. Ripple acts as an agent between two or more parties in a transaction and confirms that the exchange has properly taken place. It facilitates exchanges for a variety of cryptocurrencies.  

Ripple – SWIFT’s Top Competitor

The company serves as an effective replacement for a leading money transfer network known as SWIFT.  SWIFT is a service for international money and security transfers used by a network of banks and financial institutions. It replaces the settlement layer between major financial institutions. The network earns fees based upon the transactions that take place. The standard fee to conduct transactions on Ripple is set at 0.00001 XRP, which is minimal. 

RippleNet is a global network that financial institutions can use to transfer money quickly, with greater transparency and at less cost through a unified system. This stands in stark contrast to the fragmented traditional ecosystem banks have historically worked with. RippleNet requires the use of just one application programming interface (API). Ripple formerly also had products called xRapid, xCurrent and xVia, although the company combined those solutions to form RippleNet in 2019. 

“The Ledger”

The XRP Ledger is an open-source blockchain on which the XRP coin runs. XRP is the native asset of the Ledger. The XRP Ledger and the XRP coin run independently of the company, although Ripple uses both. Abbreviated as XRPL, the XRP Ledger serves as a blockchain on which parties can construct solutions, similar to the Ethereum blockchain.  

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RippleX serves as a platform touting blockchain-based solutions that interested parties can use for their various value-transfer-based use cases. The platform looks to serve as an easier method for harnessing blockchain-based solutions, as opposed to interested parties building their own solutions from scratch. RippleX utilizes the XRP Ledger and aims for simplicity in terms of mainstream compatibility. Two other protocols exist under RippleX. Interledger helps with payments compatibility when multiple different systems are involved. PayString works to simplify payment addresses.  

Fluctuating in United States dollar value, the XRP coin is also an asset traded on crypto exchanges. XRP is used in various capacities in Ripple’s ecosystem of solutions. 

Fast Settlement 
Low Fees 
Versatile Exchange Network 
Large Financial Institutions 

Somewhat Centralized 
Pre-mined XRP Supply 
SEC lawsuit pending

XRP – In a Nutshell

XRP is a cryptocurrency running on the XRP Ledger. This blockchain was engineered by Jed McCaleb, Arthur Britto and David Schwartz. McCaleb and Britto founded Ripple and use XRP to facilitate transaction on the network. XRP can be (1) bought as an investment, (2) exchanged as a coin for other cryptocurrencies, (3) or utilized to finance transactions on the Ripple network. 

XRP’s blockchain is unique and centralized; anyone can download its validation software and maintain a unique node list that users can select to verify their transactions. There are > 35 trusted validators currently. Ripple decides which validators to approve for the list and makes up six of these validation nodes. Users can opt out of this list and hypothetically remove Ripple-backed validators from their transactions. Users are able to construct their own list of trusted validators. The network, hypothetically, could continue to approve transactions even without Ripple remaining involved. 
Validators update their ledgers as new transactions come in. Ripple can securely and efficiently validate these transactions. As the ledger is updated every three to five seconds, if there is an error, Ripple can rectify the mismatch. And this helps to give the cryptocurrency an advantage over other competitors.  

Mining XRP

Mining is the distributed verification system used by most blockchain-based cryptocurrencies. The process facilitates transactions and provides the mechanism for new currency to be introduced into the system. It is typically used as an incentive for verifiers for their efforts in supporting the network.

XRP is pre-mined, which means that the XRP Ledger created 100 billion tokens that are periodically released to the public. Ripple owns 6% as an incentive to help the cryptocurrency grow and be successful. Roughly 48% is held in a reserve for regular release into the market. 

There are concerns that XRP could be diluted; comparative scarcity helps to give currency its value.  


Ripple’s business, technology and ecosystem are not completely synonymous with XRP, although Ripple does harness the XRP coin for certain uses within its ecosystem.

Crypto, in a general and broad sense, lacks levels of compatibility with traditional money systems. By harnessing blockchain technology, Ripple aims to help quicken and smooth the process of money transfer.

It is important to note that although the Ripple company harnesses the XRP Ledger and XRP coin in various capacities, the XRP Ledger and XRP coin are independent of the Ripple company, according to ample statements and material issued by the company itself over the years of operating. 


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