Cryptocurrency XRP, also known as Ripple, is often confused with the company that created it, Ripple Labs.’
Ripple uses XRP in one of its products but says that investors should not use cryptocurrency as a proxy for the whole company. XRP shares a logo, and the wave name, with Ripple Labs, a payment company that uses blockchain technology to transfer across borders. XRP is a payment protocol and cryptocurrency, which according to Marcus Treacher, the Global leader of Ripple’s strategy Accounts, “finely tuned to transactions.”
Ripple & XRP
Ripple financed the development of the XRP Ledger, which is an open network without a central authority.
Ripple’s strategy is to establish institutional, cross – border payments with XRP, an open source for access and participation in the public sector of XRP cash flow. The wavenet is exclusive to the company, wave, while the XRP Ledger is open to all users.
XRP is a stand-alone digital currency used to facilitate transactions on the Ripple Network.
Ripple uses XRP in its products such as Xrapid to provide access to on-demand liquidity to banks and other financial institutions.
When XRP is traded through the Xcurrent system, Ripple defines it as a new product called xrapid.’
Companies can exchange assets in and out of XRP to move them faster through the wavy payment protocol.
For Ripple, Xrapid is the last stage of a consortium’s effort called RippleNet, in which XRP is the central asset that connects all its different payment protocols.
XRP, or waves, is a coin, but it is the original XRP ledger coin, not the wave itself, which is a network.
For example, in Ripple, the Roman Bank could determine that it relies on the Paris Bank up to 50, 000 euros ( or 40, 000 XRP or any other currency ). You can see why Ripple is called the “agnostic currency” system, which means that the system operates independently of the currency and thus independently of its own XRP cryptocurrency: trusted line Participants can also issue each other IOUs of any currency they wish. XRP, or waves, were created before the company was established, and the only relationship between Ripple, company, and XRP is that a certain percentage of coins were donated to the company after incorporation. XRP within the Ripple network is only used to charge a small transaction fee, which is supposed to deter spammers.
Why was XRP Launched?
Launched in 2012, XRP has become one of the largest cryptocurrencies in the world. The primary objective of ripple (the company) is to create a global billing network for more efficient transactions between financial institutions around the world. XRP is the name of the digital currency that makes transactions on the wavy network easy.
XRP is the XRP Ledger’s native asset, an open source blockchain running on a network of peer – to – peer servers.
XRP is a stand-alone digital asset that facilitates transactions on the Ripple network, acting as a bridge between several fiat coins and as a source of liquidity.
According to Ripple, The quick fixation times above The XRP protocol means that companies will have minimal exposure per transaction. Most people consider Ripple to be a central open network, which makes crypto lovers crack, but perhaps it is a necessary feature to support the technology so that banks can move large sums of money at a fast pace.
Ripple is a private, cash flow – positive company that aims to create and enable a global network of financial institutions and banks to use the wave software to reduce the costs of international payments.