To begin, it is important to understand the difference between XRP, Ripple, and RippleNet. XRP is currency that runs on a digital payment platform called RippleNet, which sits atop the database of a distributed ledger called the XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open source and does not rely on blockchain, but rather on the previously mentioned distributed ledger database.
The RippleNet payment platform is a real-time payment system (RTGS) that aims to enable instant monetary transactions globally. Although XRP is the original cryptocurrency of XRP Ledger, you can actually use any currency to make transactions on the platform.
While the idea behind the Ripple payment platform was first communicated in 2004 by Ryan Fugger, it wasn’t until Jed McCaleb and Chris Larson took over the project in 2012 that Ripple began to be implemented (it was also called OpenCoin at the time)
How does XRP work?
XRP was created by Ripple to be a fast, less expensive, and more attainable alternative to both other digital assets and existing monetary payment platforms like SWIFT.
The RippleNet ledger is managed by the global XRP community, of which the Ripple company is an active member. The XRP ledger processes transactions roughly every 3-5 seconds or whenever independent validation nodes come to a consensus on both the order and validity of XRP transactions, as opposed to proof-of-work mining related to Bitcoin (BTC). Anyone can be a Ripple validator and the list is currently made up of Ripple along with universities, financial institutions and others.
How can you buy XRP?
You can buy XRP on any marketplace that offers the digital currency. For the latest list of exchanges and trading pairs for this cryptocurrency, click on our market pairs tab. Remember to do your research before choosing an exchange!
How can you store XRP?
You can store your XRP on an exchange, where the exchange is responsible for the security of your asset, or store your XRP in a wallet with cold or hot storage.