Last updated 12/06/2021
Official Website: https://ripple.com/xrp/
Ripplenet is an open-source protocol designed by Ripple for fast and cheap transactions, using a digital asset (XRP) in commercial payments by financial institutions. XRP is the token used to constitute the transfer of value across the Ripple Network.
XRP was created in the hope to achieve a solution that provides a frictionless way to send money globally for banking, financial services and other payment services. XRP hopes to be faster, less costly and more scalable than any other digital asset. Ripple is focused on building technologies to expand the utility of XRP in addition to other third-parties also investigating other XRP use cases.
XRP is the name of the actual cryptocurrency itself, however, it was developed by Ripple and this is where some confusion may lie. Some think they are one and the same thing – XRP is the cryptocurrency but Ripple is the company that developed and created XRP on RippleNet. XRP is essentially the bridge between the two currencies that are being transferred, whether that be other cryptocurrencies or fiat exchanges; XRP acts as a mediator. In addition to this you can trade and store XRP just like any other Cryptocurrency.
XRP (XRP) was launched in 2012 by San Francisco based fintech company, Ripple. Its founders include angel investor and privacy activist, Chris Larsen, along with programmer and entrepreneur, Jed McCaleb, who is well known for founding several cryptocurrency companies including Ripple Labs, Stellar, eDonkey, Overnet and cryptocurrency exchange Mt. Gox, which at its primes was handling over 70% of all Bitcoin (BTC) transactions.
Currently, Ripple is led by a larger team, some of whom include CEO Brad Garlinghouse, who has had previous experience as a CEO at collaboration service Hightail, as well as being President of Consumer Applications at AOL. Another notable member of Ripple is Chief Technology Officer David Schwartz, who previously has developed encrypted cloud storage and messaging systems for the National Security Agency (NSA) and CNN. This team and their 500+ employees are always further developing Ripple, Ripplenet and XRP (XRP) to help push for a more frictionless global payment system, in the aim to reduce cost, increase speed, provide more access and give certainty in all transactions.
Further information regarding the Ripple team can be found here.
There are 4 key focuses which Ripple believe will help them create a new global payments infrastructure. XRP is increasingly being used for cross-border payments providing customers with real-time, low cost and fully trackable payments on a global scale. This is the primary use case for XRP which, through RippleNet, innovates on existing global payment networks. The four main focuses of RippleNet are:
XRP is not mined in the better-known ways like other Cryptocurrencies (Please see our Bitcoin or Ethereum Coin Guides if you haven't already). Instead of having a consensus algorithm like Proof-of-Work (PoW) or Proof-of-Stake (PoS), the XRP Ledger is maintained by independent participants of a global “XRP Community,” of which Ripple is an active member.
In the outset, 100 billion XRP coins launched the cryptoasset. Ripple releases up to 1 billion XRP a month to ‘grow the team, business and ecosystem’; this results in increasing numbers of payment institutions on-boarded, and accepting XRP in turn increases liquidity and global demand. Independent validator nodes come to an agreement on the order and validity of XRP transactions. This agreement, known as ‘consensus’, serves as final and irreversible settlement. The XRP Ledger reaches consensus on all outstanding transactions every 3-5 seconds, at which point a new ledger is issued. Active validators on the ledger today include universities, exchanges and financial institutions. There are currently 36 validators, and Ripple runs 6 of them (16%).
Ripple does not officially endorse, recommend, or make any representations with regards to digital wallets on their website. However, like other cryptocurrencies, there are many wallets compatible with storing and holding XRP. Leading hardware wallet providers such as Ledger and Trezor are compatible with XRP.
Software wallet providers such as Exodus and Trust Wallet are also great for storing, sending and receiving XRP. It is always recommended that you ensure using a secure wallet, create back-ups and store any sensitive recovery information in addition to completing your own research and due diligence into any service you are looking to use.
You can Buy XRP by heading over to the Buy Coins page of our website. XRP is available on BC Bitcoin trading against major fiat currencies: GBP and EUR. Buying XRP has never been easier, simply place your order and provide your wallet address. Once your payment arrives, XRP will be sent directly to your wallet.
Overall XRP has received significant banking from existing financial institutions. It is being widely adopted by many banks and payment processers improving the RippleNet, which aims to be a solution to a lot of current cross-border banking issues using blockchain and a decentralized infrastructure, reducing time and cost. XRP has consistently remained a top 10 cryptocurrency by market capitalisation, this is because of the significant real-world applications that are offered through Ripplenet. Ripple should be sure not to flood the market with XRP, which would undoubtedly cause the price to plummet.
Block Explorer: https://bithomp.com/explorer/
Disclaimer: The information provided in this article is intended for informational purposes only. It is the readers responsibility to complete their own research and due diligence.