What is Ripple (XRP)?

People are often surprised to learn that Ripple and XRP (called the Ripple digital asset) are not the same thing. The confusion is understandable, since they share the same name and have similar origins! There are, however, important differences which need to be explained.

Table of Contents

1. Who Controls Ripple (XRP)?

XRP is a cryptocurrency that runs on the XRP Ledger, a blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz. McCaleb and Britto would go on to found Ripple and use XRP to facilitate transactions on the network.

You can buy XRP as an investment, as a crypto to exchange for other cryptocurrencies or as a way to finance transactions on the Ripple network.

Notably, XRP’s blockchain operates a little differently than most other cryptos. Other cryptocurrencies open their transaction ledgers and verification processes to anyone who can solve complex equations quickly. But transactions are secure as the majority of ledger holders must agree with the verification for them to be added.

XRP’s Ripple network somewhat centralizes things and uses a consensus protocol: While anyone can download its validation software, it maintains unique node lists that users can select to verify their transactions based on which participants they think are least likely to defraud them.

As new transactions come in, the validators update their ledgers every three to five seconds and make sure they match the other ledgers. If there’s a mismatch, they stop to figure out what went wrong. This allows the network to securely and efficiently validate transactions, which gives it an edge over other cryptocurrencies like Bitcoin.

“Bitcoin transaction confirmations may take many minutes or hours and are typically associated with high transaction costs,” says Lee. “XRP transactions are confirmed around four to five seconds at a much lower cost.”

2. Who Created Ripple (XRP)?

In 2011, three engineers—David Schwartz, Jed McCaleb, and Arthur Britto—began developing the XRP Ledger (XRPL). Fascinated by Bitcoin, they set out to create a better version that improved upon its limitations—with the goal of creating a digital asset that was more sustainable and built specifically for payments.

The trio of developers continued the work to build a distributed ledger that improved upon these fundamental limitations of Bitcoin, originally naming the code Ripple. The ledger included a digital asset that would originally be called “ripples” (XRP as the currency code) to follow the same naming convention as Bitcoin (BTC). At the time, the name Ripple stood for the open-source project, the unique consensus ledger (Ripple Consensus Ledger), transaction protocol (Ripple Transaction Protocol or RTXP), the network (Ripple network), and the digital asset (known as “ripples”).

3. Ripple (XRP) Pros and Cons

Ripple (XRP) Pros:

Cheap to purchase

Ripple’s XRP has a lot of potentials. At the moment, the cost of purchasing Ripple is really low. Unlike other cryptos, you do not have to spend so much. Buying XRP can be a smart choice, especially if you are looking for a coin that might become the next big thing.

Favorable transaction cost

The cost of transacting in Ripple is minute. Unlike other cryptocurrencies that have a higher transaction fee, Ripple allows you to carry out your transfers without consuming too many XRP coins.

Generally, the price for transactions on the network is set at 0.0001 XRP. This shows you how cheap it is to get a transfer done on the network.

Quick and secure transactions

Transfers done using the Ripple network are not only considerably cheaper, but they’re also secure and fast. In general, Ripple transfers can happen within four to five seconds and are not affected by the volume of money being transferred. While on the other hand, a regular bank transaction may take up hours or even days before the transaction gets verified.

Aside from the speed, the transfers done in the Ripple network are also secure. Moreover, the validation process of a transaction is considered more efficient and safer than the traditional coin mining method.

Enterprise optimized

The original intent of the Ripple network was to make transactions more convenient for the finance industry. This means that the method for moving large sums around the world has been made easier. Enterprises can use the Ripple network to do their mega transactions with less stress and hassle on their end.

Ripple (XRP) Cons:

Lawsuit issues

The SEC lawsuit against Ripple claims that Ripple had sold and distributed unregistered securities trades. Because of this issue, it makes it difficult for it to achieve its full potential. More so, Ripple has been delisted from several U.S. exchanges, which temporarily halted the trading of XRP tokens. This means that buying Ripple is an even more difficult feat to achieve now.

Volatility

The volatility of the Ripple coin is also worth considering. Much like other cryptocurrencies, the price and value of XRP also fluctuate. Because of this, it can be difficult to depend on its value. XRP can quickly skyrocket and come crashing without any kind of warning whatsoever.

Centralized

Due to the kind of system that Ripple runs, it is not as centralized as other cryptocurrencies. It uses trusted validators to verify transactions and to keep the integrity of the blockchain. In addition, with no mining activity happening, it is left to a few people to regulate all transactions.

Pre-mining

One of the ways the value of many cryptocurrencies can skyrocket is via mining. For Ripple XRP, all its coins have been pre-mined. And since there is no mining, it cannot appreciate like other coins are doing. This can make it a coin with a rather stagnant value.

4. The Difference Between Ripple (XRP) and Traditional Currencies

The main difference between them is, the traditional currency is a centralized system and bitcoins are decentralized one and peer-peer systems. Hence there are no central authorities to regulate rules and regulations on a bitcoin transaction. But a traditional currency is strictly regulated by the governmental authorities. Both the bitcoins and fiat currency have values which can be used for buying and selling of goods in the market.

Flexibility

With traditional currency functioning for five days a week and die to transaction restriction, there is a chance of freezing of currency. There is no limit in the number of currencies, being printed, and hence when there is inadequate currency, it will affect the buyers and sellers, resulting in inflation.

No Fraudulent Activity

If you want to transact with a traditional currency system, the users have to provide personal details like name, address, phone number, and lots more. So, with the internet technology, the malicious user will be able to hack the account details of the traditional currency system easily. Traditional currency can suffer from double-spending, where the same money is used for more than one transaction.

Reduced Cost

In a traditional banking system, for making a national transaction, it will take 2-3 working days, and the transaction fees will be high. In the case of international transactions, the transaction fee will be very higher, and it will take 15 days to complete the transaction. In a Cryptocurrency system like bitcoins, there is no transaction fee for making a national transaction. The transaction will also take place in seconds or within 24 hours.

5. Is It Safe To Use Ripple (XRP)?

XRP is no exception to the rule that cryptocurrencies are volatile. If you believe Ripple’s growth will continue, a small investment in XRP may be worthwhile. However, it’s not as safe as investing in stocks, but you may make a lot of money if Ripple succeeds. As always, invest at your own risk!

At the same time, Ripple’s potential is obvious to see. It can potentially replace an inefficient and outmoded international money transfer system. The fact that it has bank ties is encouraging. And any favorable changes in its legal position could result in a price hike, providing profits to investors. So, stop asking yourself: Should I buy XRP? Do your research and then take any action.

6. Is Ripple (XRP) Legal?

The famous Ripple v/s SEC lawsuit started in late 2020 with a complaint from SEC (Securities and Exchange Commission), that Ripple has conducted illegal security offering from one of the XRP digital assets. SEC lawsuit claims that XRP is known as a security in the cryptocurrency market and is not a cryptocurrency. This creates the main issue in the Ripple v/s SEC lawsuit. The Ripple lawsuit consists of reclaiming that XRP is a currency as a part of XRP digital assets. The main aim is to conduct cross-border payments with a small fee to crypto investors.

The Ripple lawsuit also consists of compliance with ISO 20022 for supporting international banking. XRP digital asset is the only digital currency compliant with the new standard language. Thus, those in favor of the Ripple lawsuit support this as a piece of strong evidence that it is a currency and not to be known as XRP digital assets.

The final verdict of Ripple v/s SEC is yet to come and is continuously lagging because the court has been denying important motions from both the Ripple lawsuit as well as the SEC lawsuit. The motion of SEC has been denied to reject the fair notice defense of Ripple as well as the motion of Ripple claimed that there is no fair notice to show the illegal coin distribution in the highly volatile cryptocurrency market.

How Does Ripple (XRP) Work?

Unlike Bitcoin and Ethereum, XRP is not mineable because it doesn’t utilize a Proof-of-Work consensus algorithm. The XRP Ledger uses its own consensus algorithm known as the XRP Ledger Consensus Protocol. This protocol works to ensure that double spending is not possible on the network.

Ripple the company has a payment solution known as xCurrent. This is built on a distributed ledger and aims to provide an efficient bridge between all currencies, including fiat and crypto.

Parties can transact with each other through xCurrent in a manor where the sender can send one currency and the receiver can receive an equivalent amount of a different currency.

When XRP is moved through xCurrent it is called xRapid. The incentive for doing so is simple: companies are able to use the xCurrent system faster if they utilize XRP, thereby creating a market demand for XRP.

How to Make Money with Ripple (XRP)?

Here are quite a few approaches for us to make money with Ripple (XRP), such as Mining, Buying & Hold Bitcoins, Accept Payments in Ripple (XRP), Earning Ripple (XRP) by turning into an Affiliate, Lending Ripple (XRP), and Micro Earnings, and Trading.

Ripple (XRP) Mining
Buy & Hold Ripple (XRP)
Accept Payments in Ripple (XRP)

Determine how you’ll use Ripple (XRP)
Find a Ripple (XRP) wallet
Find a Ripple (XRP) payment processor
Accept Ripple (XRP) payments

Becoming an Affiliate
Lending Ripple (XRP)
Micro Ripple (XRP) Earnings (Faucets, Offer Wall, Short Links, Surf Ads……)
Ripple (XRP) Games
Micro Ripple (XRP) Tasks
Trade Ripple (XRP)

How to Buy Ripple (XRP)?

As mentioned earlier, XRP, as a cryptocurrency, has very low barriers to entry to start investing and trading in. Someone new to the space can quite easily get their hands on XRP and begin their investing journey with the coin by just holding onto it and waiting for appreciation — or depreciation.

However, there are a number of different ways that a person can actually invest in Ripple and start to make money off of XRP.

It all begins with buying and holding. This is one of the more common and popular methods employed with investing in cryptocurrency and has especially paid off with regards to Bitcoin. Buying and holding isa simple and usually effective method to profit from a cryptocurrency, but it may not be the best use of XRP.

As explained above, XRP is a volatile asset and it has been fluctuating in price for some time now. Its movement has not been steadily upwards like other coins as its price is affected by a few different factors as it is owned by a full company in Ripple.

1. Things To Know Before You Buy Ripple (XRP)

Buying Ripple (XRP) and holding onto it in hopes it will appreciate in value, is the most common form of “investing”. As with all investing, you should never invest more than you are willing/able to lose. This is especially true with Ripple (XRP), since it’s still a very risky investment.

The most important thing to keep in mind when buying Ripple (XRP) is to make sure to buy only from exchanges that have proven their reputation.

Another key tip is to make sure you don’t buy all of your Ripple (XRP)s in one trade. Instead use a dollar cost averaging method—buy a fixed amount every month, week or even day throughout the year. This ensures that you buy the most Ripple (XRP) when it’s on the rise, and less when it’s going down in price.

2. How to Buy Ripple (XRP) on a Crypto Exchange

Coinbase – Secure online platform for buying, selling, transferring, and storing cryptocurrency.
eToro – Trade and invest in a diversified portfolio, starting at $10, or practise risk-free with a virtual portfolio.
Bitfinex – Digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
Binance – Low trading fees, a generously wide range of leverage, and high liquidity.
KuCoin – A large cryptocurrency exchange offering the ability to buy, sell, and trade cryptocurrencies

3. How to Buy Ripple (XRP) with Cash

Find a seller in your area who accepts cash.
Select amount of coins and place an order.
Receive account number from the seller.
Deposit cash into the seller’s account.
Upload your receipt to prove you made the deposit/trade.
Receive Ripple (XRP)!

4. How to Buy Ripple (XRP) with Credit Card

Not all platforms will allow you to use a credit card to make your Ripple (XRP) purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.

5. How to Buy Ripple (XRP) with Paypal

Login to Paypal and Select Cryptocurrency
Select ‘Ripple (XRP)’
Select ‘Buy’
Choose How Much You Want to Buy
Select Payment Method
Hit the ‘Buy’ button

How to Sell Ripple (XRP)?

1. Things to Know Before You Sell Ripple (XRP)

To get started with Ripple (XRP), you’re going to need three things: an exchange, a wallet and the knowledge of how to buy the cryptocurrency. This last one is easy with our guide on how to buy Ripple (XRP), but the other two are still important. The exchange allows you to buy Ripple (XRP) from sellers, and the wallet gives you somewhere to store it long term.

When choosing an exchange, you should look for one with many users, good customer support and low fees. Three particularly popular exchanges with newcomers are Coinbase, Robinhood and Binance. However, there’s nothing really tying you to a specific exchange, so you can try new ones and quickly change at any time.

On the other hand, wallets can be much more complex. “Cold wallets” — physical devices holding cryptocurrencies offline — come with a steep up-front cost, but “hot wallets” — pieces of software that hold your coins on a computer — are often less secure. However, since hot wallets are fine for short-term storage and free to set up, it’s a good idea to start with them.

2. Sell Ripple (XRP) in Cryptocurrency Exchanges

Step 1: Set up an exchange account
Step 2: Transfer your Ripple (XRP) to your exchange wallet
Step 3: Place a sell order

3. Sell Ripple (XRP) in P2P Trading

Step 1: Go to the P2P Trading Page
Step 2: Choose to Sell and Set Your Currencies
Step 3: Find a Buyer
Step 4: Choose How Much You Want to Sell
Step 5: Send the Offer
Step 6: Confirm the Release

4. Sell Ripple (XRP) in Ripple (XRP) ATMs

Step 1: Choose withdraw cash
Step 2: Choose Ripple (XRP) (these machines normally may support other cryptocurrencies)
Step 3: Choose amount to withdraw
Step 4: Send Ripple (XRP) to given address QR code
Step 5: Receive cash immediately as Ripple (XRP) transaction is propagated on the network

What Is Ripple (XRP) Mining?

Ripple (XRP) mining is the process of creating new Ripple (XRP) by solving extremely complicated math problems that verify transactions in the currency. When a Ripple (XRP) is successfully mined, the miner receives a predetermined amount of Ripple (XRP).

Ripple mining differs from that of other cryptocurrencies. The only individuals who can mine XRP are those who created the asset. There are only 100 billion XRP coins created at this moment, and every transaction eliminates the XRP coin used, meaning the same coin can’t be used further in other transactions. As more people join in and start using the Ripple network, XRP coins will be gradually exhausted, or their value will rise.

1. How Does Ripple (XRP) Mining Work?

Ripple has no mining or miners whatsoever. Instead, transactions are powered through a “centralized” blockchain to make it more reliable and fast. Mining is a core tenet of most other cryptocurrencies, and each uses their own system to determine how much power the miners have. Some, like bitcoin, use Proof-of-Work, but there is also Proof-of-Stake and Proof-of-Importance.

In cryptocurrency, miners are incentivized to process network transactions with the currency itself, but this has created some issues that Ripple deems untenable. In a solution built for big banks, there should be no separate group with its own special motivations for running the network.

While this idea has helped other cryptocurrencies to remain decentralized, it has also slowed them down: a problem Ripple cannot afford. This lack of mining affects other aspects of Ripple as well, taking it further from the standard.

Besides processing transactions, miners are also rewarded with cryptocurrency. This is essentially how it’s created. Ripple’s exclusion of miners naturally throws a wrench into the machinery in this regard. Ripple is not finite, and can be “printed” on-demand, which makes it much more reliable for payment processing, money exchange, and other institutional activities. When it’s used, it’s simply destroyed.

The Ripple Foundation already created the 100 billion XRP currently in circulation, giving it a stable, non-volatile character perfect for its biggest clients. However, this also removes one of the biggest factors in any true cryptocurrency: the ability to accumulate and store value as only a deflationary asset can.

2. How to Mine Ripple (XRP)?

Although it’s possible to mine Ripple on PCs, you should consider investing in the ASIC mining setup. Everyone looking for an answer to the question “How to mine Ripple on a Windows PC?” should remember that mining with a GPU is a beginner-friendly solution. In contrast, ASIC mining is the best choice for those who are more serious about crypto mining and generating a high yield. If you want to start mining Ripple on PCs, you should join XRP mining pools like unMineable.

Android or iOS

To mine Ripple on Android, you need to install the MinerGate app available on the Google Play Store. Create an account, and you’re ready to start mining Ripple.

Ripple mining on the iPhone isn’t possible due to concerns about damaging the battery.

3. Hardware for Ripple (XRP) Mining

The hardware works in concert with the software. Mining requires special software that is appropriate for a particular piece of hardware. If we are looking for the best ripple mining hardware then the user’s choice is ASIC.

It is the best hardware specifically designed to perform mining operations. It has a motherboard connected to a cooling system because mining generates a lot of energy. There is special curl XRP mining software. CGminer is mining software, coded in the C language.

Since C is compatible with all machines, you can use CGminer on any hardware such as ASIC. At first, it was designed for specific particle hardware, but due to the broad approach, it is also compatible with GPU. According to users, the newest cryptocurrency wave mining machine is ASIC.

How to Get Free Ripple (XRP)?

Most genuine websites that allow you to earn free Ripple (XRP) require you to spend money on other things like buying cloud computer mining power, connecting your CPU for mining, playing a game, or completing micro-tasks.

In other words, they offer free Ripple (XRP)s as an advertisement for their services. Otherwise, it takes time and effort to get free Ripple (XRP) given its current high value.

Ripple (XRP) Faucet
Ripple (XRP) PTC Sites
Ripple (XRP) Airdrop
Ripple (XRP) GameFi
Ripple (XRP) Bounties
Learning About Ripple (XRP)
Shopping Reward
Ripple (XRP) Interest
Owning a Ripple (XRP) Faucet
Write about Ripple (XRP)
Ripple (XRP) Affiliate Program

Free Ripple (XRP) Cloud Mining

What is a Ripple (XRP) Wallet?

1. Ripple (XRP) Wallets for Beginners

Hardware wallets: These are the safest types of wallets. They are USB-type devices that can be connected to PCs, tablets, and even mobile phones to send, receive, store, and transact XRP. Some of the best hardware XRP ripple wallets include Ledger.
Software wallets: A XRP software wallet is downloaded from the Internet and installed on your PC, tablet, iPad, or mobile device. The safest source from which to download is the specific XRP wallet’s website. Most of these operate when connected with the Internet and are hence referred to as hot wallets.
Paper wallets: A XRP paper wallet has two aspects–software that lets you create or generate private keys or QR codes for your XRP wallet, and then the printed hard copy paper containing the private key or recovery passphrase and kept offline. These are considered safer than the hardware wallet since they are free from malware and other forms of hacking although the paper can damage physically.

2. How To Make A Ripple (XRP) Paper Wallet?

Although there are ways to manually generate a private key, the vast majority of paper wallet creators use a private key generator. Once a private and public key have been created, you are able to print a paper wallet, which because it’s not online doubles as a cold storage wallet. This will include the public and private key you’ve generated, usually as both a string of characters and QR codes.

Anyone with a paper wallet’s public key can send crypto to it as often as they like. Using the corresponding private key, you can move the crypto balance of the paper wallet into a software wallet. This transfers the funds to a new private key on your software wallet.

3. Ways To Set Up a Ripple (XRP) Wallet

There are many Ripple (XRP) wallets out there, and all of them differ in their characteristics. Mobile software wallets are great for day-to-day use, while desktop software wallets bring about a great balance between convenience and security. Lightweight web wallets are the best choice for quick online transactions. Cold encrypted hardware wallets like Ledger or Trezor are the best for long-term storage of bitcoin. However, unlike other options, hardware wallets aren’t free and cost $50 or more.

Set up a Ripple (XRP) Software Wallet

Mycellium
Bread (BRD) wallet
Bitcoin wallet
Electrum
Samourai

Set up a Ripple (XRP) Web Wallet

Coinbase
Blockchain.info
BTC.com
Rahakott
BitGo

Set up a Ripple (XRP) Hardware Wallet

Ledger
Trezor
BitLox
KeepKey

How to Buy and Sell Ripple (XRP) In Different Area?

1. How to Buy and Sell Ripple (XRP) in India?

You can get Ripple (XRP) in India mainly through buying and mining. To buy it, you can use several online exchanges such as WazirX, Coinbase, BuyUcoin, and CoinDCX. Choosing the best online exchange is another task, but here are a few things you should keep in mind while buying the cryptocurrency in India.

It’s best to go with an exchange that allows you to withdraw cryptocurrency in INR to your personal online wallet for safekeeping
Make sure that the internet connection is secure. Also, don’t forget to use safe internet practices like two-factor authentication and unique and strong passwords.
KYC aka Know Your Customer verification is a must, at least in India. For that, you can use a PAN card and valid address proof
Now, add the bank account that is linked to your PAN card. Verification will take around 2-3 days

After the verification is complete, you can start trading Ripple (XRP) in India. Money from your bank accounts can be transferred using NEFT, RTGS, and debit and credit cards. Currently, the value of one Bitcoin is around 27 lakh; however, you don’t have to buy a whole coin to begin investing. You can buy Bitcoin in parts, i.e. small investments for as low as Rs 500. That way, you will own a small percentage of the cryptocurrency.

2. How to Buy and Sell Ripple (XRP) in Canada?

Sign up and get KYC (Know-Your-Customer) verified on a Canadian crypto exchange like Bitbuy.
Deposit CAD to the exchange directly from your bank account.
Buy Ripple (XRP).
Store Ripple (XRP) on your exchange account or transfer it to a wallet.

3. How To Buy and Sell Ripple (XRP) In The UK?

Create a Coinbase account.
Complete identity verification to access fiat payment options.
Navigate to the Accounts and select the GBP wallet.
Fund your account using Bank Transfer or other methods.
Once the deposit is complete, go to the Buy/Sell page and select GBP to Ripple (XRP).

4. How To Buy Ripple (XRP) in the United States?

The best way to buy and sell Ripple (XRP) in the USA is through an exchange such as Coinbase, Kraken, Gemini, Coinmama, Binance, or Changelly. There is a plethora of options available, so it is best to look at each of the exchanges’ processes for deposits and withdrawals, fees, and transaction speeds to determine which is best for you.

Ripple (XRP) FAQs

1. Ripple (XRP) History

XRP was among the first cryptocurrencies to launch after bitcoin minted the crypto market in 2010, with an eye toward faster and cheaper crypto transactions.

In 2012, three developers hoping to improve upon bitcoin launched the XRP Ledger — a decentralized blockchain with its native cryptocurrency XRP. XRP functions as a blockchain-based alternative to SWIFT, the global messaging system that enables bank transactions.

Think of it like a kind of currency that would make it easier for banks and financial institutions to transfer money around the world. The developers, along with Chris Larsen, went on to form a company called Ripple Labs the same year, which was gifted 80 billion XRP.

“Inherently, the idea is for XRP to replace the SWIFT network for cross-border transactions,” says Yoni Medhin, a crypto mining expert and a member of the advisory board for investing firm Energy Funders.

Not everyone investing in crypto accepts the idea of XRP, because there’s one centralized company behind it. Initially, when the cryptocurrency began to gain popularity, there were people on BitcoinTalk.org, who offered to pay 5 BTC ($500 at that moment) to anyone who would post a message saying that Ripple is a centralized scam, that doesn’t live up to the principles of the true open-source. However, over time the XRP Ledger becomes more decentralized, adding more nodes and removing its own nodes as validators.

Also, people are concerned about the amount of XRP tokens that belong to the team. There are 99 billion tokens, only 44 billion are in circulation, meaning that more than half of all tokens aren’t thrown to the market yet, staying in an escrow account, but someday they are going to be released.

In 2018, the class action lawsuit was filed by investors against Ripple due to unregistered sales of XRP tokens. This legal battle is still going on two years later, but it doesn’t affect their operations at all. Currently, Ripple Labs employs more than 200 people and continues to grow. xRapid is used or trialled by Cuallix, MoneyGram, MercuryFX, Cambridge Global Payments, IDT, Western Union, Viamericas, and Currencies Direct.

XRP is one of the top cryptocurrencies. It looks like it’s not going to change anytime soon. Banks are very interested in using blockchain technologies that allow them to save money on transactions, so they’ll continue to test it. That means that we’ll see more good news about XRP and its adoption in the future, and the demand for XRP tokens will continue to grow or at least stay on the same level. If you already have some XRP tokens, you can use them to make more money. XRP has a good potential to become the banking standard – and we’ll definitely hear more from the XRP team in the future.

2. How secure is XRP? Do I have to use exchanges?

The XRP Ledger is where XRP transactions occur and are recorded. The software that maintains the Ledger is open source and executes continually on a distributed network of servers operated by a variety of organizations. It’s an open-source code base that actively develops and maintains the ledger. Since XRP Ledger’s inception, we’ve worked to make the Ledger more resilient and resistant to a single point of failure through decentralization, a process that continues today.

To purchase XRP you must use an exchange or gateway and/or have a digital wallet. Ripple does not endorse, recommend, or make any representations with respect to gateways, exchanges, or wallets, but please see the list of exchanges that offer XRP here.

3. Is the XRP Ledger centralized?

This is a top misconception with the XRP Ledger. Centralization implies that a single entity controls the Ledger. While Ripple contributes to the open-source code of the XRP Ledger, we don’t own, control, or administer the XRP Ledger. The XRP Ledger is decentralized. If Ripple ceased to exist, the XRP Ledger would continue to exist.

Ripple has an interest in supporting the XRP Ledger for several reasons, including contributing to the longer-term strategy to encourage the use of XRP as a liquidity tool for financial institutions. Decentralization of the XRP Ledger is an ongoing process that started right at its inception.

4. Does the price volatility of XRP impact whether financial institutions adopt xRapid?

No. Ripple has a stable cache of financial institutions that are interested in piloting xRapid. Financial institutions who use xRapid don’t need to hold XRP for an extended period of time. What’s more, XRP settles in three to five seconds, which means financial institutions are exposed to limited volatility during the course of the transaction.

5. How is Ripple and XRP Different from Bitcoin?

The past few years opened a competition between Ripple and Bitcoin. Ripple’s protocols promised to displace the older, less technically advanced Bitcoin network. But the biggest challenge to Bitcoin was the fact that Ripple did away with mining, and used a lighter form of encryption to avoid DDOS attacks, while also carrying virtually unlimited transactions. Bitcoin’s protection comes from transaction fees, but on certain days, even the Bitcoin network is overwhelmed by transactions. Bitcoin carries between 300,000 and up to 700,000 transactions per day, or up to 7-15 transactions per second.

The Ripple protocol, however, is tailored to process up to 1,500 transactions per second. The exact number of XRP daily transactions, however, is not as transparent.

Bitcoin, for most of its history, has relied on voluntary miners and node operators. The connections between them rely on the general Internet infrastructure, with a few exceptional nodes that are easier to contact. Overall, the Bitcoin network has more than 10,300 nodes communicating across the globe, and it takes minutes for all nodes to update to the latest state of the ledger and confirm the transactions.

Ripple, on the other hand, has a list of so-called validators, which have known locations and even names. The validators communicate roughly every 4 seconds, which updates the ledger and achieves consensus on transactions.