What is Ripple (XRP)?

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Ripple is a blockchain-based digital payment protocol that facilitates cross-border transfers with the help of blockchain technology.

Often compared to the existing SWIFT payment system, Ripple primarily functions as a payment settlement asset exchange, and remittance system facilitating digital payments across the world.


Let's dive into Ripple and the XRP token.

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What is Ripple?

Ripple is a blockchain-based digital payment protocol designed to aid the financial sector on a macroeconomic level. The blockchain's primary focus is to facilitate cross-border transactions in a cost-effective manner.

The purpose of Ripple is to act as a trusted intermediary between two parties in a transaction and corroborate whether the exchange between the two entities was intercepted and executed properly.


The platform also facilitates exchanges for a variety of fiat currencies and cryptocurrencies, such as Bitcoin and Ethereum.

Dubbed an alternative to the popular SWIFT payment method, Ripple's fast and cost-effective blockchain makes it easier for users and institutions to conduct monetary transfers quicker without the need for a third party.

What is XRP?

XRP is a crypto token that runs on the XRP Ledger, a blockchain created by engineers Jed McCaleb, Arthur Britto, and David Schwartz.

The token is used extensively by traders to carry out crypto transfers on the XRP Ledger and to pay transaction fees.

Ripple's XRP Ledger blockchain uses a unique consensus protocol to validate transactions.


While anyone can download XRP's validating software, the blockchain maintains a special node list that users can scroll through and select to verify their transactions.

Users are free to select participants that are least likely to trick them, which gives them more power over their fund transfers.

Several banking organisations, including IndusInd Bank, Santander, and Bank of America, are already utilising the platform, which has been steadily establishing itself as a top alternative to traditional methods of payment.

Despite being engaged in a heated legal dispute with the SEC (U.S. Securities and Exchange Commission), Ripple is still expanding and building on top of the XRP Ledger.

The platform has recently collaborated with Thallo to offer carbon credits to consumers and has made it possible for users to mint NFTs on the XRP Ledger. An EVM-compatible sidechain is also in production.

Learn more about other cryptocurrencies: Quant (QNT), Polygon (MATIC), AllianceBlock (ALBT), Evmos (EVMOS), Osmosis (OSMO)