What Is XRP (Ripple)?

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One of the largest cryptocurrencies by market capitalization, XRP is used by financial institutions, businesses, and individuals worldwide for fast payments. Continue reading to learn more about this altcoin.

Key Takeaways:

What Is the XRP Token (Ripple)?

Ripple links financial institutions, payment providers, exchanges, and businesses through RippleNet—a standalone real-time gross settlement system—to provide a frictionless global money-transfer experience. It relies on blockchain technology designed to be decentralized, scalable, and secure. The native token of Ripple, XRP, serves as a bridge currency to facilitate international payments and remittances. The total supply of XRP is capped at 100 billion, and the network claims to settle transactions in three to five seconds.

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A Brief History of XRP

Created by U.S.-based Ripple Labs Inc., XRP is the native cryptocurrency of the XRP Ledger (XRPL), a decentralized public blockchain developed by Jed McCaleb, Arthur Britto, and David Schwartz.

The XRP Ledger launched in June 2012 with the goal of creating a sustainable digital asset optimized for payments. Today, XRP ranks among the top cryptocurrencies by market cap.

How Does XRP Work?

Instead of relying on miners or validators, the XRP Ledger uses a unique XRP Ledger Consensus Protocol. In this system, a trusted network of validators collaborates to confirm transactions and agree on the ledger’s state.

Key aspects of XRP’s consensus mechanism:

What Is RippleNet?

RippleNet is Ripple’s payment network, enabling fast, low-cost global money transfers. It includes:

Use Cases for XRP

XRP’s primary applications include:

Additionally, Ripple is collaborating with 20+ countries on Central Bank Digital Currencies (CBDCs), leveraging the XRP Ledger’s technology for stability and security.

Conclusion

Ripple’s XRP streamlines global payments via RippleNet, offering speed, affordability, and scalability. Its focus on institutional use sets it apart from P2P cryptocurrencies.

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FAQ

1. Is XRP centralized?
While the XRP Ledger is decentralized, Ripple Labs holds a significant portion of XRP, raising debates about centralization.

2. How fast are XRP transactions?
Transactions typically settle in 3–5 seconds.

3. Can XRP be mined?
No—all 100 billion XRP were pre-mined at launch.

4. What’s the difference between Ripple and XRP?
Ripple is the company; XRP is its native cryptocurrency.

5. Where can I buy XRP?
XRP is available on major exchanges like OKX and Crypto.com (for U.S. users).

6. What are the risks of investing in XRP?
Regulatory scrutiny and market volatility are key risks. Always conduct due diligence.