XRP is the asset of the XRP Ledger (XRPL) blockchain. Throughout the crypto industry, participants sometimes refer to XRP as Ripple, or they may see XRP and Ripple (the company) as the same thing. According to Ripple, the underlying XRP and XRPL blockchain are separate from the technology company – which is focused on improving the payments landscape around the world. However, Ripple uses XRP and XRPL in some of its solutions.
XRP is a borderless currency that runs on the open source XRP Ledger blockchain. Origin was created as a solution to improve payments around the world. Companies or platforms can integrate the asset into their operations or use the coin on its own, while individuals can also send and receive XRP.
Ripple uses XRP as part of its On Demand Liquidity (ODL) solution (a component of the RippleNet ecosystem) to connect different assets. This essentially makes it possible for entities to conduct cross-border transactions, with each participating party receiving its native currency.
Cointelegraph’s XRP Price Index shows live XRP price today, along with its price history and other data.
Bitcoin (BTC) emerged in 2009 as a way to transfer value like never before – a limitless web-based asset that doesn’t need intermediaries. Two years later in 2011, Jed McCaleb, Arthur Britto and David Schwartz — three of the builders — set out on the path of forming a separate digital asset focused on payments that would advance the concepts emerging in Bitcoin.
The XRP Ledger and the original XRP origin were launched in 2012. Ripple appeared later, although its name was changed several times before it became known as Ripple.
XRP transactions are processed faster than Bitcoin transactions, with blocks – or ledgers, as they’re called in XRPL – confirmed within three to five seconds versus Bitcoin’s 10 minutes. Interested parties can also build on the XRPL blockchain. XRP transactions usually cost a fraction of 1 XRP, which generally works out to a value of less than a penny or so. Transaction fees are burned, which slightly reduces the amount of XRP present.
The XRP Ledger is operated by validators through a system called the XRP Ledger Consensus Protocol. This format differs from other consensus mechanisms such as Proof of Work (PoW) found in Bitcoin. Essentially, validators work together to produce blocks – or ledgers, according to XRPL – with the higher than 80% agreement required between participants to keep moving forward on the XRPL network.
What to know when trading XRP
XRP has an eventful price history. Its value is constantly changing, similar to most crypto assets. In the past, the asset traded below $0.10, above $3, and everything in between. Compared to Bitcoin, XRP has a large supply of coins and different tokens, which give the two originals different values for the price of each coin.
XRP is a well-known asset in the crypto industry, with a large market capitalization. XRP is listed on several digital asset exchanges, including Bitfinex, Kraken, Bitstamp, Binance, and FTX.