What is XRP, XRP Ledger, and Ripple? Key Differences Explained
In the ever-evolving landscape of cryptocurrency, XRP has emerged as one of the most influential digital assets since its inception in 2012. Designed to facilitate fast and affordable cross-border transactions, XRP stands out due to its unique technology and underlying philosophy. This article provides a thorough understanding of what XRP is, how it works, the role of the XRP Ledger (XRPL), and how Ripple contributes to the ecosystem.
What is Ripple?
Ripple is a blockchain technology company that primarily focuses on providing cross-border payment solutions. Ripple is widely known for its contributions to the XRP Ledger (XRPL) and for promoting the use of XRP in global finance.
While Ripple plays a significant role in the development and promotion of XRP, the company itself also offers RippleNet — a decentralized global payments network used by banks, financial institutions, and payment providers to facilitate real-time, low-cost international money transfers.
Ripple's Origin
Ryan Fugger, a Canadian software developer, originated the concept for Ripple and created RipplePay in 2004.
In 2012, Jed McCaleb, Arthur Britto, and David Schwartz acquired Ripple from Fugger, transitioning it from a credit platform into a blockchain-based digital payment network. Chris Larsen also played a key role in developing the XRP Ledger (XRPL), which officially launched in June 2012.
Key Founders
- Jed McCaleb
- Title: Co-founder
- Background: Founded Mt.Gox, an early Bitcoin exchange, in 2010.
- Contributions: Served as Ripple's CTO before founding Stellar after forking the XRPL.
- Chris Larsen
- Title: Co-founder
- Background: Founded e-Loan and Prosper Marketplace.
- Contributions: Ripple CEO (2012–2016), now Executive Chairman.
- David Schwartz
- Title: Co-founder
- Background: Former Director of Software Development at Webmaster Inc.
- Contributions: Current Ripple CTO and original XRPL architect.
Other Contributors
- Arthur Britto
- Background: Former video game designer.
- Contributions: Helped build the XRP Ledger.
What is XRP?
XRP is the native digital asset of the XRP Ledger (XRPL), an open-source, decentralized blockchain.
The Basics of XRP
- Symbol: XRP
- Launch: 2012
- Use Case: Cross-border payments and liquidity for institutions
- Consensus: Unique consensus protocol with independent validators
What is the XRP Ledger?
The XRP Ledger (XRPL) is a decentralized blockchain known for its speed, efficiency, and scalability. It is capable of processing thousands of transactions per second, making it suitable for enterprise-grade financial use.
Key Features of the XRP Ledger
- Speed: Transactions are confirmed in 3–5 seconds.
- Low Fees: Typical transaction costs are a fraction of a cent.
- Decentralized: Maintained by independent validators, not Ripple.
The Role of Validators and Nodes
Validators reach consensus on transaction sequence. Anyone can run a validator that follows network rules. XRP Ledger does not require mining.
View the list of XRPL Validators.
Nodes maintain the XRPL network. Full History Nodes store the complete blockchain history.
Creating and Distributing XRP
All 100 billion tokens were created at launch. Ripple holds a portion and distributes it to support ecosystem growth.
View the TOP 100 Accounts by XRP Balances.
Key Features of XRPL
- Liquidity: XRP is perfect as a bridge currency between fiat currencies.
- Scalability: With Pay Channels it can handle thousands of transactions per second.
- Energy Efficient: No mining, low environmental impact.
Market Position and Outlook
XRP has faced volatility and legal scrutiny, notably from the U.S. SEC.
Its use cases, low-cost, and high-speed performance have helped maintain its relevance in the evolving crypto landscape.
Conclusion
XRP and the XRP Ledger present innovative solutions for cross-border payments, Real World Assets and global liquidity.