Quick Facts

Approximate Market Cap$40,395,256,571
Year Established2012
FounderJed McCaleb

To execute global money transfers, banks employ the SWIFT system. While this is successful, it incurs additional expenditures.

Ripple’s main goal is to offer an effective method for the instant transfer of money. Transfer that settles in real-time but is less expensive, safe, and more transparent than a typical financial institution’s transfer.

What is Ripple – Definition

RippleNet’s original digital currency is XRP. It operates as a  P2P network.  It enables instant global transactions.

The idea behind RippleNet and XRP was to provide fast, secure, and low-cost conversions between different units of value.

By design, XRP is unlike many of its digital currency counterparts. It doesn’t use the support of a  blockchain protocol.  It uses the XRP Ledger to confirm transactions by asking network participants to reach a consensus. In addition, the development and maintenance of the technology are overseen by Ripple.

Pros and Cons


  • Fast transactions
  • Cost-effective
  • Suitable for small businesses


  • Not used widely
  • Less decentralised
  • Run by a private company

The History

RipplePay, the first service of the Ripple Project, debuted in 2004. It represented a decentralized peer-to-peer payments infrastructure designed to eliminate the need for financial middlemen.

The Ripple project tried to solve the basic flaws of traditional financial institutions. In 2012, the team behind the Ripple project invented the first Ripple protocol (RTXP).

The team also developed the Ripple Protocol Consensus Algorithm (RPCA). It was a system that would process transactions more quickly and securely.

The creators decided to generate 100 billion XRP. The XRPcoins were then allocated amongst the founders in an unknown manner.

Today, the company overseeing the development of RippleNet is known as Ripple.

How Ripple Works

When most people think of Ripple, they probably have XRP cryptocurrency in mind. The fact is that Ripple does employ the XRP token for certain purposes inside its ecosystem.  Yet, Ripple’s company, technology, and ecosystem are not entirely identical to XRP.

The developers of XRP and the Ripple network designed the RPCA protocol. The protocol challenges the existing financial systems and alternative digital currencies.

XRP has a semi-permissioned network. Ripple decides which financial institutions become a part of RippleNet.

Ripple is also transparent and pseudo-anonymous. The defining characteristics of XRP are its XRP ledger and the absence of mining.

Advantages & Disadvantages


Fast transaction speeds 

XRP transactions are completed at an average rate of 5 seconds.

Low transaction fees

The average XRP transaction cost is $0.0002. It is among the lowest relative to the top ten digital assets by market cap.

Institutional payment network 

RippleNet consists of over 200 major financial companies. The company’s network includes American Express, Santander, and MoneyGram.


Level of Decentralization

XRP appears to be relatively less decentralized when compared to other digital assets.

Potential for Supply Shocks 

The majority of XRP supply is still held by the Ripple protocol founders and the company. There is a concern that significant or consistent periodic sales may put downward pressure on the price of XRP.

Ripple in the Global Crypto Market

XRP and its Ripple technology serve as a fast, inexpensive, and secure way to make global payments. It offers many advantages compared to other digital assets. These refer to differences in the design, development, and maintenance of its protocol.

Ripple technology developed a unique subset of products. Its xCurrent, xRapid, xVia, and xPring are specifically developed for financial institutions. These factors have propelled XRP’s increasing adoption as a global payment rail. It also helped to establish XRP as the third-largest digital asset in the ecosystem by market cap.


Who owns the Ripple Company?

The development of the technology is overseen by Ripple Labs. Inc. It is a US-based company that designs the Ripple payment system and exchange network.

Is there a difference between Ripple and XRP?

Ripple is a firm that uses its RippleNet network to provide efficient solutions for transferring funds. XRP is a digital currency. Its Ledger was built independently of Ripple, so it has no influence or ownership over it.

What causes the price fluctuations of XRP?

XRP’s price, as the value of any digital asset, varies according to market conditions.