What is XRP?

To understand XRP, we must first understand Ripple. Ripple is both a platform and a currency. The Ripple platform is an open-source protocol, allowing fast and cheap transactions. 

RippleNet is a network of institutional payment providers. These include money service businesses that use RippleNet solutions in their business and banks. This allows the transactions to be friction-free. 

RippleNet facilitates a quick, secure transaction of any size with no chargebacks. Traditional bank wires and transfers often require days to complete a transaction. Yet, Ripple can achieve the same transaction in seconds.

Whenever users make a transaction using Ripple, it deducts some XRP as a small fee. Other forms of payment are accepted. However, XRP offers some attractive benefits

Ripple, unlike bitcoin, was not intended to be a payment machine. XRP is the name of the currency, but anyone can use the platform and create their own via the RippleNet portal.


XRP is a cryptocurrency. XRP can be any currency, which makes it highly flexible. However, XRP is simply a token that represents the transfer of value across the Ripple Network. 

XRP was created by many of the same people that created Ripple: Jed McCaleb, Arthur Britto, and David Schwartz. After they created XRP, Jed McCaleb and Arthur Britto invented Ripple to use XRP.

What is incredible about the transaction is that the standard fee is $0.00001, and it disappears from the platform, a fraction of what traditional banks and transfer services charge. This means with every transaction, the world effectively becomes $0.00001 poorer. 

The Ripple website states that XRP is the fastest and most scalable digital asset. XRP is the only digital asset capable of moving money to different enterprises in seconds. You can make global payments anywhere, and the fees are low. Plus, there’s no go-between person. 

Yet, it remains as volatile as many other cryptocurrencies. Even though Ripple is typically cheaper than most other cryptocurrencies like Ethereum, Bitcoin Cash, and Bitcoin, it remains the third-most valuable in terms of the market. 

XRP is available as an investment in cryptocurrency. You can use XRP as a coin to exchange for other cryptocurrencies, or simply as a way to finance transactions on the Ripple network.


Many people wonder how Bitcoin and Ripple are different. You probably understand what the coins do but don’t understand how they compare. 

First, let’s state why Bitcoin and Ripple are similar: they are both cryptocurrencies supported by blockchain technology. They both have their native coin.

  • XRP is cheaper: Bitcoin takes several minutes to complete a transaction and has higher fees vs XRP. 
  • Both currencies circulate the market differently: Bitcoins are released to the miners as they find them. Bitcoins have no release date or schedule. Supply depends entirely on the algorithm and network speeds. In contrast, XRP is released based on a contract. Unused XRP coins wait in Escrow.
  • Different validation methods: XRP is known mainly for the technology it uses to enable digital asset exchanges, remittance systems, and payment settlement options. Instead of using blockchain mining, it uses a distributed consensus mechanism. This distribution consensus mechanism goes through a network, which conducts a poll. That poll will decide by consensus the validity of the transaction. 
  • The market has more XRP coins: Bitcoin’s supply caps at 21 million whereas XRP had 1 billion pre-mined. XRP has already surpassed Bitcoin in numbers and continues to grow. 
  • Trading volume: The trading volume of XRP overshot Bitcoin’s trading volume by $28.5 billion in October 2021.


Ripple earns a profit when it sells XRP. They also earn a profit when transactions are settled and interest fees on loans.  

Ripple is also a software company with investors and venture capital. Ripple raised $293 million in venture funding alone. They earn profit through licensing software, partnerships, technological integrations, and technical support. 

Ripple has diversified their services, a big reason why they are successful so far. Despite their diversification, Ripple’s pipeline is with digital currency. The value of XPR equates to around $1 billion of the company’s monthly revenue. 


As of January 2022, Ripple is nearing the end of a lawsuit with the Securities and Exchange Commission (SEC). Many people are concerned about investing in XRP until the case finalizes. 

Until then, the currency remains unstable. Those who are very familiar with investing in digital currency could enjoy the wager against its future. If you believe in XRP’s future, then go for it!


“Mining” is used by many blockchain cryptocurrencies. It manages transactions and provides the structure that introduces new cryptocurrency into the system. For example, Bitcoin has a total supply limit of 21 million tokens that are steadily released as more and more transactions are verified. Blockchain cryptocurrencies typically give these to verifiers for their support. 

However, XRP was “pre-mined,” which means some of the coins were distributed before the release date. About 48% to 50% are to be released in the market through sales. But 6% of that is owned by Ripple. They use it as an incentive to build cryptocurrency. 

Some people are concerned that releasing so many XRP through sales will dilute the value of other XRP circulating the market. Other people are concerned about Ripple owning 6% of the coin. 


XRP may be used as any digital currency. If you need to make a digital transaction, you could use Ripple to help you.

For example, if you’re traveling abroad and need to exchange US dollars for euros, you could do that with Ripple by exchanging US dollars for XRP. Using Ripple means you don’t have to go through a bank that often has higher fees. 

Anytime you need to do a bank transfer, send money, or process a transaction that accepts cryptocurrency, Ripple can help with the process for a very small fee. 

To get started, you need to purchase XRP. You can buy with several mediums, including Bitcoin. Next, you would choose a wallet that is necessary to use cryptocurrency. If you’re serious about cryptocurrency, it’s wise to look into hard wallets.  


Until the lawsuit between Ripple, the SEC is over, we won’t know for certain of XRP’s future. Ultimately, the Ripple system works better than the Bitcoin system because of its faster processing times and lower fees. 

Ripple was never meant to be a payment machine, but evolution has put Ripple ahead of its competitors. Despite its current legal battle, Ripple still stands strong and serves millions of people every day worldwide. Because Ripple is decentralized and caters to many banks, they’re able to stay ahead of the game. 

Bitcoin and Ripple specialize in different services. Understanding your goals with cryptocurrency will help you know which service works best for you. Want to know more about XRP? Open up an online bank account, deposit your crypto, and start using your BlockCard as soon as your application is complete.