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What Is Ripple? What Is XRP?

Introduction to Ripple

Ripple ( is identified as a digital payment network and protocol with its native coin called XRP. It splits into two portions; Ripple act as XRP cryptocurrency for banks, and Ripple as a company transfer money between banks and financial institutions quickly and cheaply worldwide.

RippleNet ( is a network of institutional payment providers that provide a frictionless experience to send money anywhere on the horizon of the globe.

XRP is a token used to transfer value across the Ripple network. It performs the role of mediator between crypto and fiat exchanges.

Ripple is popularly known as the child of the banks.

Let’s explore both XRP, a digital coin, and RippleNet in detail.

What Is RippleNet?

Ripple is a blockchain-based digital payments settlement system, currency exchange network, and remittance network developed by Ripple Labs.

Ripple network facilitates payment transfer from bank to bank through an inter-ledger protocol that connects & validates cross-border payment transactions on blockchain technology.

There are many mainstream Banks & financial institutions such as Bank of America, Santander, American Express, Standard Chartered, SBI Remit, AZIMO, LEMONWAY, NIUM, BeeTech, Lulu Exchange, Union Credit, Cross, etc. in more than 55 countries with 120 + currency pairs choose RippleNet to move money around the world.

What Is XRP?

XRP is a digital currency that runs on the XRP ledger (, a blockchain invented by Jed McCaleb (, D. Schwartz (, and Arthur Britto( to improve cross-border payment mechanisms between different banking systems in the world.

XRP does not require an energy-extensive mining procedure to work & mine a new currency unlike Bitcoin and Litecoin do.

Ripple does not require Proof of Work (PoW) and Proof of Consensus (PoS) to verify and validates its transactions. It uses the Ripple Protocol consensus algorithm (RPCA) to confirm transactions through a group of bank-owned servers.

XRP is a crypto coin that is designed to help banks to move money quickly and cheaply than the traditional existing methods. XRP is used to facilitate financial transactions on RippleNet.

Briefly Explain the History & Background for Creating a Ripple

In 2004, Ryan Fugger, a web developer who developed Ripplepay & laid the creation of a secure payment service. The Fugger’s idea was further strengthened by Jed McCaleb, the inventor of the eDonkey network in 2012 when he joined hands with Chris Larsen to create OpenCoin that outlined ripple protocol & the Ripple payment network. In 2013, Jed McCaleb rebranded OpenCoin Corporation & renamed it Ripple Labs, Inc. He invited investors to invest in Ripple Labs. Finally, Jed McCaleb and Chris Larsen put the very foundation of the first bank, Ripple Labs to transfer money worldwide.

Who Are the Prominent Co-founders of the Ripple?

Jed McCaleb and Chris Larsen are both cofounded Ripple in 2012.

Jed McCaleb

Jed McCaleb( is a renowned programmer and an entrepreneur. He is well known for the launch of three famous crypto firms including Mt. Gox, Ripple, and Stellar. McCaleb created Mt. Gox in 2010, the first Bitcoin exchange but sold after a year before the infamous hack. Then, he founded Ripple in 2012 but soon leftover on confrontation with partners. Finally, a credit of Stellar creation also goes to him in 2014. Stellar is a competitor of Ripple that facilitates peer-to-peer payments.

According to Forbes’ 35th annual list of billionaires 2021, the net worth of Jed McCaleb is $2 billion. Most of his wealth comes from holdings of 9 billion XRP as the founder of Ripple.

Chris Larsen

Chris Larsen( is an American angel investor and co-founder of Ripple in 2012 to facilitate international payment systems for the banks through blockchain technology. He stepped down as the CEO of Ripple Labs and remained the Executive Chairman of the company. In 2019, he donated around $25 million in XRP to San Francisco State University that is considered the largest donation in the history of digital assets to a university so far.

According to Forbes’ 35th annual list of billionaires 2021, the net worth of Chris Larsen is $3.4 billion.

How to Buy XRP?

You can buy XRP with dollars, pounds, or euros through many crypto exchanges such as Bitstamp, Kraken,, Bitfinex, etc.

The users can open an account on the crypto exchanges of their choice; verify their credentials by submitting required documents such as a copy of the driving license, social security card, passport, or proof of identity to meet KYC requirements.

Different exchanges offer different payment methods to buy XRP such as Kraken accepts wire transactions and rejects ACH transfers, credit or debit cards while Bitstamp and accept Visa/ Master cards or bank transfers. Similarly, they charge different fees on deposits and withdrawals.

Besides this, users can buy XRP with Bitcoin, Ethereum, and altcoins. A user should have a wallet on crypto exchanges like Bittrex, Poloniex, Binance, or Changelly to buy XRP with other cryptocurrencies & to store them.

What Distinguishes Ripple from Other Cryptocurrencies?

Let’s find out the facts that make Ripple stand out from other cryptocurrencies such as Bitcoin, Ethereum and Dogecoin, etc.

Ripple Vs Bitcoin

Ripple confirms transactions incredibly fast. It takes less than 4 seconds to execute transactions while Bitcoin takes minutes to hours to complete transactions.

Bitcoin requires extensive energy Proof of Work to validate the transaction. Contrary to this, ripple devoid of energy-intensive mining to create a new currency. Ripple has mined 100 billion units in advance. It uses Ripple Consensus Algorithm to validate instant transactions.

Ripple Vs Ethereum

XRP transactions are fast & cheaper than Ethereum. Ripple is more energy-efficient than Ethereum.

Ripple takes 3+ seconds per transaction. Ethereum takes 15 seconds per transaction. Ethereum faces congestion issues in times of peak hours & an increase in gas fees. This is not the case with Ripple that has the capacity to process 1,000 transactions per second. It helps banks to run a high volume of transactions for cross-border payment settlements.

Ripple Vs Dogecoin

Dogecoin is a decentralized digital currency that is used to send money worldwide. Ripple has wider scope it connects banks, payment providers, and crypto exchanges through RippleNet to make international payments.

Ripple bridges crypto and banking systems to exchange fiat to crypto and crypto to fiat currencies instantly.

Large banks are on the back of XRP and many mainstream financial institutions are planning to adopt a ripple network that has the potential to process high volume transactions at low cost.

What Are the Pros & Cons of Ripple?


Cheap Transaction Cost

Ripple XRP as a mediator, on conversion crypto asset to fiat currency or fiat to cryptocurrency, it charges minimal commission & saves millions of dollars. It charges very low fees on transaction confirmation of 0.0001 XRP, which is a minute fee as compared to the large fees charged by banks on conducting international transactions.

Fast Transaction Agreements

It only takes 3+ seconds to confirm transactions however Bitcoin takes much time or even days for regular banking systems. Furthermore, Ripple can process over 1000 transactions per second as Visa does process.

Used by Large Banks & Institutions

Large banks and financial institutions use ripple for instant money move globally. Many banks are planning to use it in the future.


Centralized Ripple System

The Ripple system is highly centralized which is in contrast to the decentralized distributed ledger network. Banks act as a node on the network that exercises more control over transactions.

The Monopoly of Ripple Labs

Ripple Labs owns 61 percent of total XRP coins. It has complete control over the supply of XRP. It influences the value of XRP by deciding when to release and how many tokens to be released. For this reason, SEC filed a lawsuit against Ripple in 2020 & instructed it to be registered XRP as a security.

Ripple Operates on an Open-Source Platform

Ripple network operates on open-source that refers to software programs with source code that is readily available and easy to modify by anyone. Therefore, once the code is accessible by the hacker, there is plenty of chance to be hacked.

Current CoinMarketCap Position

Ripple is the most trusted cryptocurrency. It touched the height of $ 1.6 price, securing a market cap position of $77 billion as of May 2021 on CoinMarketCap. Currently, XRP is being traded at $0.914 & ranked at 7th place with a market cap of $43.5 billion, circulating at a total XRP supply of 46.151 billion and a maximum supply of 100 billion XRP coins.