What is Ripple?
XRP is digital currency and Ripple is the open payment network within which that currency is transferred. Ripple connects banks, payment providers, and digital asset exchanges via RippleNet to deliver one smooth experience to send money globally. It is based around a shared, public database that allows for payments, exchanges, and remittance in a distribution process.
Unlike most other digital currencies, which seek to circumvent traditional financial systems, Ripple (XRP) is designed to help and support the global financial system. It is not a consumer-facing product, but rather a back-end infrastructure that runs as the world’s first universal translator for money. Ripple has a foreign exchange component built right into the protocol and keeps money flowing freely.
It is built on the most advanced blockchain technology that is secure and able to inter-operate through different networks. Ripple is designed to connect different payment systems together and have it flow seamlessly as one.
Ripple’s XRP unit is a digital form of currency and has a limited number of units that can be mined. You can transfer XRP from peer-to-peer without a third party having to intervene and digital security is provided to protect against counterfeit coins.
5 Things to Know About XRP
- XRP and Ripple are two different things – People often confuse Ripple and XRP as being one in the same. In fact, they are two different things. Ripple is an open payment network, while XRP is the digital asset.
- XRP isn’t trying to replace fiat currency – XRP works with fiat currencies on more than 10 digital exchanges to transfer value across borders.
- XRP isn’t mined like Bitcoin – XRP is not a mined digital asset. Every unit of currency that exists has already been created by Ripple.
- XRP operates at a much greater scale and speed than Bitcoin – Bitcoin blockchain technology can only process 7 transactions/second, while the XRP blockchain ledger can process more than 1,000 transactions per second.
- XRP is the future of global asset exchanges – The speed, scalability, security and low costs of the Ripple Network and XRP all but guarantee that banks and financial institutions will eventually make the switch from traditional exchanges.
The Future of XRP
In April of 2017, Ripple announced the addition of 10 new customers to its growing global network. These financial institutions include MUFG, BBVA, SEB, Akbank, Axis Bank, YES BANK, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com, representing some of the world’s largest banks, innovative smaller banks and payment service providers. In short, Ripple’s place in the financial world is only growing and an investment in XRP is an investment in a technology that is revolutionizing the global transfer of assets.
Learn more about XRP here.