XRP is a cryptocurrency that Ripple uses as its native token. Like other cryptocurrencies available, XRP has a currency code similar to Ethereum’s Ether (ETH).
The Ripple team introduced the XRP ledger in 2012, which included the native token XRP. The main objective of XRP is to streamline global financial transfers and currency exchanges.
Although XRP is frequently called Ripple, it’s crucial to understand that XRP is an open-source digital asset not related to Ripple, which is a technology company. Given its efficient speed, reliability, and carbon neutrality, XRP delivers fast results and helps customers stay compliant– making it the perfect choice for technology company Ripple’s solutions.
XRP is a cryptocurrency that operates on its own blockchain, which is known as the XRP ledger. Transactions are facilitated by the Ripple transaction protocol. One special thing about XRP compared to other cryptocurrencies is that it doesn’t need to be mined because it’s premined- meaning there’s a maximum supply of 100 billion tokens. The token’s total supply was distributed in two different ways:
– 80 billion XRP tokens were initially allocated to Ripple, the parent company. Of those, 55 were locked in an escrow account to ensure a stable supply would be met.
– The remaining 20 billion XRP was then distributed to Ripple’s co-founders and core team.
Ripple is a centralized financial technology company that focuses on global payment solutions through its remittance system, payment settlement, and exchange. It was founded by software developer Ryan Fugger in 2004 as Ripplepay. This was before Bitcoin became the world’s leading cryptocurrency. In 2012, Chris Larsen and Jed McCaleb co-founded Ripple.
The goal of Ripple was similar to that of Bitcoin’s creator Satoshi Nakamoto: they both wanted to make it easier and faster to conduct transactions globally, but without sacrificing security. The downside to using Ripplepay was that, because it was centralized, it didn’t utilize the blockchain technology.
The XRP ledger was developed in 2011 by McCaleb, David Schwartz, and Arthur Britto as an answer to Bitcoin’s many limitations. To help with its function, the native token XRP was incorporated upon the ledger’s launch in 2012. This team of engineers was later joined by Larsen who is now Ripple’s executive chairman and co-founder.
Ripple has undergone several name changes since 2012. First, it was changed from Newcoin to OpenCoin in 2012. Then, in 2013, Ripple Labs took over the name. Finally, in 2015, after rebranding, it is now known as Ripple- a title more familiar to many today.
The original intention behind XRP was to have a secure peer-to-peer network. Ripple claims that XRP is a more efficient digital asset than some other cryptocurrencies because it can process transactions quickly and uses less energy.
XRP is most commonly used as a settlement layer to facilitate transactions with the Ripple network. It can be traded as a cryptocurrency on multiple exchanges, including futures and options exchange, spot exchanges, custodian exchanges, and non-custodian exchanges.
With XRP positioned as an alternative to bitcoin, it has gained massive adoption over the years from various communities, causing its prices to soar.
XRP reached an all-time high of $3.40 in early 2018, a 51,709% jump from its original price at the beginning of 2017. Since then, it has experienced an exponential decline, yet it remains a significant coin with a large market capitalization. It currently sits at seventh position on the cap table.
Unlike most cryptocurrencies, XRP transactions don’t come with a transaction fee. Instead, the sender burns a minuscule amount of XRP, making it what some people call a deflationary asset.
XRP deflationary asset’s primary benefit is that it will eventually run out, which could take up to 70,000 years. To prevent this issue, validators can manipulate the transaction cost and prices through a voting system as long if all requirements are met.