XRP is the asset of the XRP Ledger (XRPL) blockchain. Throughout the crypto industry, participants sometimes refer to the XRP coin as Ripple, or they may see XRP and Ripple (the company) as the same thing. According to Ripple, XRP and its underlying XRPL blockchain are separate from the technology company — which is focused on improving the payments landscape worldwide. Ripple does, however, utilize XRP and the XRPL in some of its solutions.
XRP is a borderless coin running on the open-source XRP Ledger blockchain. The asset was constructed as a solution to improve payments across the world. Companies or platforms can incorporate the asset into their processes or use the coin by itself, while individuals can also send and receive XRP.
Ripple uses XRP as part of its On-Demand Liquidity (ODL) solution (a component of its RippleNet ecosystem) to connect dissimilar assets. This essentially makes it possible for entities to transact across borders, with each involved party receiving its native currency.
Cointelegraph’s XRP Price Index shows XRP’s price live today, as well as its price history and other data.
Bitcoin (BTC) came into existence in 2009 as a method of value transfer unlike anything before it — a borderless web-based asset needing no intermediaries. Two years later in 2011, Jed McCaleb, Arthur Britto and David Schwartz — a trio of builders — embarked on a path toward the formation of a separate payments-focused digital asset that would further the concepts seen in Bitcoin.
The XRP Ledger and its native XRP asset went live in 2012. Ripple came into existence later, although its name changed multiple times before becoming known as Ripple.
XRP transactions are processed faster than Bitcoin transactions, with blocks — or ledgers, as they are called on the XRPL — being confirmed in three to five seconds as opposed to Bitcoin’s 10 minutes. Interested parties can also build on the XRPL blockchain. XRP transactions typically cost a small fraction of 1 XRP, which generally works out to a value less than a penny or so. Transaction fees are burned, slightly decreasing the amount of XRP in existence.
The XRP Ledger is run by validators through a system called the XRP Ledger Consensus Protocol. This format differs from other consensus mechanisms such as proof-of-work (PoW) seen in Bitcoin. Essentially, validators work together to produce blocks — or ledgers, per the XRPL — with an agreement higher than 80% required among participants for continued forward progress on the XRPL network.
What to know when trading XRP
XRP has an eventful price history. Its value changes constantly, similar to most crypto assets. In the past, the asset has traded below $0.10, above $3, and everything in between. Compared with Bitcoin, XRP has a large coin supply and different tokenomics, which give the two assets different price-per-coin values.
XRP is a well-known asset in the crypto industry, boasting a significant market capitalization. XRP is listed on various digital asset exchanges, including Bitfinex, Kraken, Bitstamp, Binance and FTX.