What is Ripple (XRP)?

What is Ripple (XRP)?

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Ripple is a payments settlement system as well as a network and currency exchange that can process global transactions. Ripple is a trusted agent between two parties in a transaction. Ripple facilitates exchanges of a wide range of fiat currencies such as Bitcoin and even commodities such as gold.

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XRP is the cryptocurrency that runs on Ripple's XRP Ledger, which is a blockchain that was initially developed by Jed McCaleb, Arthur Britto, and David Schwartz.

XRP's blockchain operates differently than other blockchains. Where other cryptos open transaction ledgers and the verification process to anyone who can solve complex algorithms, transactions are secure because the ledger holders must agree with verifications before they can be added to the blockchain.

However, with XRP Ripple's network, things are more centralized. While anyone can download the validation software, XRP Ripple maintains a unique node list that users can use to verify their transactions.

This is based on the participants that think they are least likely to defraud them. The default list has 35 trusted validators, and Ripple decides which validators must approve this list, and it is also made up of six of these nodes.

Users have the option of opting out of this default list and subsequently removing Ripple-backed validators from transactions, allowing users to construct their own list of trusted validators.

This allows the network to continue to approve transactions regardless of Ripple remaining involved or continuing to exist. When new transactions come in, validators will update their ledgers every three to five seconds, making sure that these match the other ledgers.

If they mismatch, the validators stop the process to figure out what went wrong. This allows Ripple to validate transactions securely and efficiently, giving it a competitive edge over other cryptocurrencies.

Ripple (XRP) components table:

Component Ripple (XRP)
Technology Peer-to-peer digital payment protocol
Reliability Very high reliability
Market Value $50 billion+
Open-Source – Yes/No? Yes – Ripple is an open-source platform
Consensus Method Ripple Protocol Consensus Algorithm (RPCA)
DApp relation None
Founders Jed McCaleb, Arthur Britto, David Schwartz
Founding Date 2012 – Initial Release
Headquartered San Francisco, United States


XRP is a cryptocurrency with a market cap of more than R50 billion [2021/10/08] that uses a proprietary XRP ledger instead of a traditional blockchain network. Ripple is a decentralized peer-to-peer network that offers a digital payment protocol to several financial institutions.

Through Ripple, many financial institutions can use seamless digital money transfer, whether they want to send fiat money or cryptocurrencies through a secure, decentralized network.


How does Ripple Work?

Ripple XRP and RippleNet were created in 2012 and aimed to facilitate the transfer of money and other assets within seconds.

In terms of transaction speed, Ripple XRP is scalable and can handle 50,000 transactions a second. Because of its fast speed and scalability, there are over 100 companies that have joined the Ripple Platform.

Ripple was developed to be a replacement for the leading money transfer network, SWIFT, or to otherwise replace settlement layers between large financial institutions.

XRPL does not use any blockchain technology and does not rely on either mining or staking for transactions to be confirmed. Instead, Ripple's network uses a proprietary consensus algorithm known as the Ripple Protocol Consensus Algorithm (RPCA).

Because of its unique nature, projects cannot be built on Ripple's infrastructure. However, Ripple is partnered with more than 100 financial institutions that use its unique technology for transactions, such as:

  • Bank of America
  • American Express
  • SBI Holdings and TransferGo
  • Andreessen Horowitz
  • IDG Capital Partners
  • Lightspeed
  • Google Ventures

In terms of advantages and the reasons for its popularity, the following is noteworthy about Ripple (XRP):

  • Low transaction fees – the average transaction fee on the RippleNet network is one-fifth of a cent.
  • Absence of mining because XRP uses a proprietary consensus algorithm that uses a pool of trusted nodes that validate transactions. Participants can also choose the nodes that they want to trust to verify their transactions.
  • High bandwidth – the Ripple network can process up to 50,000 transactions per second.
  • Fast transaction speeds, according to the official XRP website, the XRP Ledger can confirm transactions in three to five seconds.

What are the Ripple-based Projects?

Because of the unique nature of Ripple and XRP, projects cannot be built on the network as they would on other blockchains such as Ethereum.

Ripple is not based on a blockchain, and it does not use mining or staking to confirm transactions.

However, Ripple's development has confirmed in August that Decentralised Finance (DeFi), Nonfungible Tokens (NFT), smart contracts, and federated sidechains are coming.


For what is Ripple used?

Ripple and XRP were developed to replace SWIFT, a leading payment system. However, instead of replacing the entire banking and payment system, Ripple tries to provide a way to facilitate cheap and quick payments through a decentralized platform.

Ripple's primary purpose is to provide a payment settlement asset exchange as well as a remittance protocol that works in the same way that SWIFT works. Ripple provides a similar solution to transfer money securely and internationally while removing the middleman.

Ripple is important because it was built to serve different banks, payment providers, financial institutions, and cryptocurrency exchanges. Ripple allows for real-time transaction settlement while ensuring lower transaction fees.

As of September 2023, Ripple has more than 100 partners across 50 countries, including giants like Bank of America, American Express, SBI Holdings, and many more.


Is understanding Ripple hard?

No, understanding Ripple is not hard.

Unlike many other Altcoins that have complicated systems, Ripple and XRP operate simply and in a straightforward manner. It is important to understand ripple because it can have a large impact on the way that online transactions are done.

Ripple is not like other Altcoin because it is not based on a blockchain, and it does not use the same consensus mechanisms to validate transactions. 


What is Ripple's Technology?

In terms of technology, Ripple operates an open-source and peer-to-peer decentralized platform and network that allows for money of any kind to be transferred.

Ripple uses a medium, or Gateway, as a link in the trust chain between two parties who want to transact. The gateway acts as a credit intermediary that receives as well as sends currencies to public addresses through the Ripple network.

Ripple's technology does not involve either a Proof-of-Work (PoW) or a Proof-of-Stake (PoS) consensus mechanism. Instead, transactions depend on a proprietary consensus protocol that validates account balances and transactions.

This consensus method improves the integrity of the system by avoiding double-spending. When a Ripple user starts a transaction with several gateways but they try to send the same $100 to the gateway systems, it will have all except the first transaction deleted.

The individual distributed nodes in Ripple's system will decide through consensus which transaction was the first. Confirmations are instant, taking up to seconds.

Ripple keeps a record of all “IOUs” in each currency for all users and gateways. IO credits and different transaction flows that happen between Ripple wallets are publicly available on the Ripple consensus ledger.

However, even if the financial transaction history can be accessed and viewed, the data is not linked to the ID or the account of any specific business or individual.

In terms of Ripple's evolution, it can be dated back to 2004.

  • 2004 – Ripple was first idealized in 2004 by Ruan Fugger, who was the first developer of Rippleplay, a decentralized digital monetary system.
  • October 2011 – Jeb McCaleb first pushed the first commit for the XRPL validator. During the same year, McCaleb, alongside David Schwartz and Arthur Britto, developed the XRP Ledger.
  • June 2012 – XRP was created, and Arthur Britto created 100 billion XRP, which was known as XNS during this time.
  • September 2012 – OpenCoin was co-founded by Chris Larsen and McCaleb, with the development of the Ripple Protocol (RTXP) and Ripple Payment and Exchange Network starting.
  • December 2012 – XRPL went live and started transacting.
  • April 2013 – OpenCoin purchased SimpleHoney to popularize virtual currencies and subsequently make them easier for ordinary users. During the same time, the Angel funding round was closed with different venture capital firms.
  • May 2013 – The second round of Angel Funding closed.
  • 2013 – McCaleb left Ripple after a conflict between founders.
  • September 2013 – OpenCoin changed its name to Ripple Labs, Inc.
  • November 2013 – Ripple Labs, Inc. completed its Seed funding round.
  • May 2015 – Ripple received a civil money penalty from the United States Treasury Financial Crimes Enforcement Network (FinCEN) to the value of $700,000.
  • May 2015 – Ripple Labs raised $28 million during Series A Funding from IDG Capital Partners, CME Group, and several others.
  • October 2015 – the company simplifies its name to Ripple.
  • October 2015 – Ripple introduced the Internledger Protocol (ILP).
  • May 2016 – Ripple and SBI Holdings established SBI Ripple Asia Company Limited.
  • June 2016 – Ripple obtained a virtual currency license.
  • September 2016 – Ripple raised $55 million during its Series B funding round.
  • September 2016 – Ripple created the first interbank group for global payments according to distributed financial technology, the Global Payments Steering Group (GPSG), which was later renamed to RippleNet Committee.
  • September 2017 – A lawsuit between R3 and Ripple because of an option agreement where Ripple agreed to sell 5 billion XRP for $0.0085, with Ripple countersuing R3.
  • October 2017 – Ripple reaches over 100 financial institutions that use its unique technology.
  • December 2017 – Ripple locks 55 billion XRP in escrow.
  • May 2018 – Ripple announces Xspring, which was a new initiative in which it invested to incubate, acquire, and provide grants to both companies and projects that are run by entrepreneurs.
  • June 2018 – Ryan Coffey sued Ripple.
  • June 2018 – Ripple introduced a University Blockchain Initiative.
  • June 2018 – Vladi Zakinov sued Ripple.
  • August 2018 – Ripple controlled less than 50% of the Unique Node List of the XRP Ledger, giving way to XRPL decentralization.
  • August 2018 – Ryan Coffey dismissed the lawsuit against Ripple.
  • September 2018 – Ripple and R3 settled.
  • October 2018 – RippleNet provided on-demand liquidity to financial institutions regarding cross-border payments in using XRP.
  • By January 2019, over 200 customers had signed up for RippleNet.
  • In June 2019, Ripple invested in MoneyGram, creating a strategic partnership.
  • In September 2019, the XRP Ledger achieved a milestone after closing its 50 millionth ledger. During the same month, Ripple was sued by Cooperative Entertainment, Inc.
  • By November 2019, Ripple exceeded 300 customers.
  • In December 2019, Ripple announced that it had raised $200 million in Series C funding.
  • In February 2020, Cooperative Entertainment, Inc. filed for voluntary dismissal of the lawsuit that it had against Ripple.
  • In April 2020, Ripple took legal action against YouTube to prompt an industry-wide behavior change, simultaneously setting the expectation of accountability.
  • May 2020, Ripple joined ISO 20022, an emerging, global, and open standard for payment messaging, making it the first member that was focussed on Decentralised Ledger Technology (DLT).
  • May 2020, Ripple announced the availability of RippleNet Cloud.
  • June 2020 – several companies involved with technology, finance, and non-profit causes announced the launch of PayID.
  • December 2020 – the Securities and Exchange Commission (SEC) filed an action against Ripple Labs, Inc for raising more than $1.3 billion through an unregistered asset securities offering.
  • September 2023, The Royal Monetary Authority of Bhutan partners with Ripple to pilot a CBDC using a private blockchain.

In terms of its potential, when considering the worldwide remittances market, the possibility of adoption for Ripple is massive. Many well-known financial institutions have partnered with Ripple, while many more are exploring Ripple as means to combat the friction in the financial systems.

While these institutions are not using XRP itself, the platform that Ripple provides allows users to issue their tokens that can facilitate transfers between platforms.

Ripple controls 61% of the supply of XRP, with the company frequently selling amounts of XRP on the market, allowing for operations to be funded. XRP enjoyed strong interest from local community members, and Ripple as a company is consistently growing and expanding.

Ripple is different from many other cryptocurrencies and Altcoins in the following way:

  • Ripple's Ledger System – every crypto has a ledger system on which all transactions are recorded. XRP's system requires that 80% of nodes validate transactions, meaning that these transactions are faster. XRP is the currency spent on the Ripple network, much like Ethernet is spent on Ethereum's network.
  • Speed – The processing speed of Ripple is like most credit cards, with 50,000 transactions processed within a second, unlike Bitcoin, where transactions can take up to 10 minutes.
  • Mining – Ripple cannot be mined, unlike Bitcoin, where miners validate transactions that are added to the blockchain.
  • Ripple is both centralized and decentralized with Ripple Labs that has the ability and capacity to the protocols that validators follow. Fipple release a unique node list of verified as well as trusted validators (UNL).


What is Ripple’s price?

Since its launch in 2012, Ripple's price has seen some drastic changes.

  2017 2018 2019 2020 2021 To date
XRP Price High $2.21 $3.3 $0.4 $0.69 $1.83
XRP Price Low $0.005 $0.2 $0.1 $0.13 $0.22
Market Cap $85.7B $130B $20.1B $31.39B $83.51B

Is Ripple Open-Source?

Yes, Ripple is open-source.

Ripple has open APIs that developers can use to build integrations for Ripple.

  • Ripple as a network for Transactions – with the Ripple Protocol running on a network of computer/servers from around the world, verifying transactions using the Ripple Protocol. The network is direct and peer-to-peer, which means that there is no middleman.
  • Ripple as a currency exchange – On Ripple, users can exchange dollars for yen, bitcoin for pounds, and so on. On ripple, users can decide on their preferred currencies for paying and receiving. When transacting, the protocol will subsequently find a pathway for the user's selected currency so that the other user can receive funds in their chosen currency.
  • Ripple as a Digital Currency – For the Ripple protocol to facilitate transactions, there is an intermediary currency in the system, XRP. It acts as an intermediary between currencies and plays an important role in security.

In terms of the impact for investors, it is a good thing that Ripple is open-sourced because it instills trust and investor reassurance. Most cryptocurrency projects are open-sourced, and this will be a contributing factor for widespread adoption.


What is the best Ripple wallet?

Simply defined, a Ripple wallet is a piece of software where users store the necessary data to access their Ripple (XRP) funds. This data contains a private key, which is like a password, and a wallet address, also known as a public key, which acts as an account number would.

In terms of the types of Ripple wallets, users can distinguish between the following:

  • Cold Wallets – which are offline wallets that store funds in an application that is not connected to the internet.
  • Hot Wallets, which are online applications that require an internet connection.
  • Physical wallets are unique pieces of hardware like USB devices that keep crypto funds offline.
  • Web wallets are web browser ad-on wallets.
  • Desktop wallets – which are applications that allow users to manage their finds on macOS, Microsoft Windows, or Linux.
  • Paper wallets which is a piece of paper with a code or QR code on them. To access the assets, the user enters the key or scan the code to access their account.

The functions and importance of a Ripple wallet are the same as owning and using a physical wallet where fiat currencies are stored. Ripple wallets can be used to store, transfer, receive and manage XRP in one central place.

When crypto coins are stored in a wallet, it does not mean that the actual coins are there, but the wallet instead generates a private key, also known as a hexadecimal code, that is used alongside another hexadecimal code, or a public key, which is linked to a certain amount of currency.

Therefore, an XRP wallet is a personal ledger of transactions, and it is important to the transaction and to keep funds safe.

Some of the best Mobile, Desktop, and Hardware Ripple wallets in 2023 are:

  1. Ledger Nano S
  2. Trezor
  3. Trust Wallet
  4. Coinbase Wallet
  5. Atomic Wallet


1. Ledger Nano S

Ledger Nano S is a hardware XRP wallet that is a compact shape like a USD drive with an OLED screen. This is one of the safest wallets because of its size and ability to store private keys, eliminating any hacking attempts to steal XRP.

Ledger Nano S allows users to store unlimited XRP coins alongside other cryptocurrencies as well. The hardware wallet makes it easy, secure, and hassle-free to store XRP.

All the user needs is a device that is compatible with the wallet, like a PC or a mobile device.


2. Trezor

Trezor is well-known as the original hardware wallet for storing and transferring cryptocurrencies. Trezor is extremely secure, and as an offline wallet, it has a private wallet. The private seed consists of 12 to 24 unique words that are stored offline, with coins retrieved through the key from an offline backup. 

With each transaction, regardless of how big or small, the user must enter a PIN. There is a limited USB connection that ensures that the wallet is protected from any malware and/or viruses in case the computer that it is connected to is infected.


3. Trust Wallet

Trust Wallet is a non-custodial decentralized cryptocurrency wallet that provides users with control over their crypto coins. Trust Wallet supports XRP in addition to 160,000 other coins as well as assets.

The hardware wallet is highly secure and is supported by smartphones using iOS and Android, or it can be used on a browser.


4. Coinbase Wallet

This wallet is decentralized and supports XRP coins in addition to many other coins and tokens. This is the best wallet for Android and iOS phones, and it is one of the best XRP coin hot wallets in the industry.

Coinbase Wallet uses two-factor authentication, multi-signatures, confirmation requests, and more to keep the account and the funds safe.


5. Atomic Wallet

This wallet is a simple, comprehensive, and light wallet that can be installed on the user's device to store, send, receive, exchange, and buy Ripple. Atomic wallet is approved by many XRP community members because of its simple and smooth user interface and wide variety of features.


What is Ripple’s Burn rate?

Coin burns can simply be defined as the process where coins are sent to a public address where they cannot be spent because the private keys of these addresses are unobtainable.

Coins are burnt for various reasons, including:

  • To create new coins
  • To reward token holders
  • To destroy any coins that were not sold after an Initial Coin Offering (ICO) or a token sale.


In terms of necessity, coin burns to ensure that there is a long-term commitment, ensures price stability, and protects against spam.

According to trusted sources, Ripple Burn deducts 10 drops in terms of Ripple at 0.00001 XRP. For every 100,000 transactions, it means that 1 XRP is burnt.

Earlier in 2023, during an interview with the CEO of Ripple, Brad Garlinghouse, he had said that he is always open to new ideas that could be good for the XRP ecosystem.

When Garlinghouse was asked about whether Ripple would burn the coins in its escrow, he stated that he did not rule this option out, and if it would make sense for the ecosystem of XRP, then it would be considered.

Ripple has 47.8 billion XRP that is locked in escrow, which is worth $66 billion, or 105% of the circulating supply, or 47.8% of the total supply, and the idea of destroying this significant XRP reserve is not a new one.

This would not be the highest burning rate in the cryptocurrency space, with EOS leading the pack with a burn worth $150 million taking place in 2019.


What can you do with Ripple?

  • Method of payment
  • Speculative trading
  • Investment and long-term wealth

XRP is not designed to be a payment currency for goods and services from merchants and providers, but XRP can be used to pay fees on the Ripple Network.

In addition to this, traders and investors can use XRP to speculate on price movements to make profits in the cryptocurrency market. Investors can invest capital into XRP to profit from long-term price changes.

Unlike other crypto technologies, Ripple is a payments settlement system and a currency exchange network with a focus on fast and cheap transaction solutions.

When compared to Bitcoin, Ripple does not aim to become the currency and to replace fiat or paper money. When compared to Ethereum and other projects, Ripple does not seek to be a platform for the development of decentralized applications (DApps) or smart contracts but to be part of decentralized finance (DeFi) as a settlement system.


What are the criticisms against Ripple?

  1. High Supply
  2. Top-Down Corporate Structure
  3. Price Stability
  4. SEC Lawsuit


1. High Supply

Supply is normally only important if it is proportionate to demand. Even if there are 46 billion XRP in circulation, institutional demand may never match this. 


2. Top-Down Corporate Structure

Like most companies, there is a chief executive officer for Ripple who directs the resources of the firm. There is a significant amount of speculative money in the cryptocurrency space that got there, with investors placing capital into technologies despite whether they understand it.

Ripple has a clearly defined goal and an ideal opportunity to carve out a niche in the market, which matters more than ideological purity.


3. Price Stability

Ripple could eventually act either as a lender or a last resort, but with 50 billion XRP in escrow, both the currency and company can scale easily.


4. SEC Lawsuit

In 2015, Ripple had a run-in with American regulators when the company was fined by FinCEN. Ripple was sued for selling XRP without the appropriate registration in place first.

To resolve this dispute, Ripple agreed to use a “Know Your Customer” (KYC) verification process for all XRP investors.

This legal battle started in December 2020 and came about because Ripple violated securities laws when it raised money through an unregistered, ongoing digital asset securities offering.

According to the lawsuit, XRP is a security, and it is, therefore, subject to registration with the SEC because Ripple solely owns and controls the infrastructure of XRP.

In addition, the lawsuit also alleged the heavy reliance that Ripple has on XRP sales to fund operations. Ripple, in turn, repeatedly stated that in many countries, XRP is recognized as a cryptocurrency, which exempts it from being considered a security.

XRP is a digital currency that is used to carry out international and domestic transactions, making it unnecessary to register with SEC. After the lawsuit, XRP's price fell but recovered a month later.

A decision on the case is expected no earlier than the start of 2023.


What is the biggest competitor of Ripple?

The largest competitor of Ripple is Stellar.

Jeb McCaleb founded Stellar as well as Ripple, but there are distinct differences between the two projects. However, like Ripple, Stellar occupies a similar niche in targeting financial services.

Stellar's claim to fame came when IBM announced a partnership with Stellar and KlickEx to expedite payment processing in a cross-border environment.

The IBM blockchain and the Lumens token (XLM), the native token of Stellar, wanted to accelerate validation as well as processing times of 12 regional banks.

While there have been massive blockchain partnerships in financial services, only a few were willing to use the native cryptocurrencies as IBM did with Stellar's XLM.

Stellar and Ripple both have exceptionally fast and inexpensive transaction processing, with Ripple's transactions costing a fraction of a cent, with transactions processed within seconds, while Stellar takes an average time between two to five seconds, with 100,000 transactions costing $0.01.

Stellar could stand out and give Ripple a proverbial run for its money, especially where decentralization is concerned because Ripple is more centralized than Stellar, even if the Stellar Development Foundation controls a significant portion of XLM.

Ripple has also faced a significant amount of criticism and backlash that Stellar has not faced at all.

In terms of market cap, Ripple is over $50 billion, with Stellar on $8 billion. In terms of price stability, XRP is expected to trade with bullish momentum towards the $2 mark before the end of 2023.

In terms of XLM's price stability, Stellar was dragged into a damaging flood which was caused by news that El Salvador had introduced Bitcoin as an approved currency and payment method early in October. However, after this, the price action in XLM is seeking stable ground to build back up from this occurrence.

In terms of demand, XRP is much higher than XLM as it ranks 6th on the Altcoin list while XLM comes in at 23rd on the list. In terms of technology, Ripple was created to allow banks to transfer money abroad within a few seconds at no cost.

With Stellar, its technology allows funds to be sent and received quickly and cheaply, with both Ripple and Stellar using a distributed ledger protocol through which transactions can be processed.

Neither Ripple nor Stellar use miners because of their unique structures, and neither Stellar nor XRP allow the public to run nodes. Both XRP and Stellar's developers run proprietary nodes across different servers, but banks and private organizations can choose which technology can run nodes.

But there are key differences between XRP and Stellar in:

  • The way through which nodes reach consensus, with Stellar using a Stellar Consensus Protocol and Ripple, uses a proprietary protocol.
  • There is also a difference in how the supply of coins works.


Is Ripple better than Bitcoin?

Yes, in many ways, Ripple is better than bitcoin.

Ripple is a better alternative to Bitcoin for the following main reasons:

  • Ripple is much faster and cheaper, with Ripple transactions costing 1/100th of a penny while Bitcoin’s fees average at $0.50 per transaction, with some going as high as $55 per transaction. Bitcoin takes 10 minutes to verify a transaction while Ripple takes a few seconds, with 50,000 transactions executed in those few seconds.
  • There is no “slowdown in the XRP network because of an increased number of transactions. This is because XRP is highly scalable, unlike Bitcoin.
  • The Ripple network does not rely on mining since 100 billion coins have already been issued.
  • XRP is becoming more decentralized with an increased number of nodes. Here, Bitcoin is still the best because it is completely decentralized.
  • Ripple is building large strategic partnerships with banks, making it a part of the global financial system.


When considering these factors, Ripple is the best option for banks and other financial institutions, especially those who need fast and cheaper ways to transfer money cross-border without caring much about decentralization.

However, Bitcoin works better for people who want to keep control over their money and keep it away from corrupt governments and corporations.


Can Ripple and Bitcoin Coexist?

Yes, Ripple and Bitcoin can coexist.

Ripple and Bitcoin both serve different purposes, and they are used differently. While Ripple has some advantages over Bitcoin, it does not make Bitcoin any less valuable.

Bitcoin aims to become a dominant force as a currency that is widely accepted, used for payments for goods and services, while Ripple is a payment processing platform that makes it easy for large financial institutions to send and receive money.

Both these cryptocurrencies can coexist without much conflict, and Bitcoin can even be compatible on the exchange network that Ripple provides, where users can exchange fiat or other cryptos for Bitcoin.


How does Ripple make revenue?

Ripple is a technology-level company that was established in 2012, raising over $200 million in its venture funding round. Ripple generates money when it sells XRP, collects fees and profits from investments and interest fees on loans.

  1. Payment Fees
  2. Interest Fees
  3. Investments
  4. Funding, Revenue, and Valuation 


1. Payment Fees

When users transfer money from one account to another on RippleNet, there is a small transaction fee. Network participants using Ripple pay 0.00001 XRP for each transaction, which means that on a transaction of $0.97, only $0.00097 will be charged for a transaction.


2. Interest Fees

In 2020, Ripple began a loan product called Line of Credit, allowing users to access On-Demand Liquidity (ODL) to obtain a loan. The loan is served as XRP, and all existing XRP is used as backing, with the loans getting sanctioned by institutions.

Ripple makes money according to interest fees that users and customers pay when they access the loan. 


3. Investments

Ripple has a significant amount of investments in the form of XRP, with invested companies converting it into other cryptocurrencies or cash. Ripple can easily outsource investments by selling the shares that were purchased in a deal at a higher price.


4. Funding, Revenue, and Valuation

Ripple has raised a significant amount of funding through venture capital funding, with some notable investors such as Core Innovation Capital, SBI Investment, Mouro Capital, and many more.


How long does it take to mine Ripple?

Ripple cannot be mined.

“Mining” is a term that refers to the distributed verification system that is used by many blockchain-based cryptocurrencies that use a Proof of Work (PoW) method to reach a consensus.

This facilitates transactions, and it provides a mechanism through which a new currency is introduced into a cryptocurrency system, normally as a reward for verifiers who do the work to support the network and ensure security.

For instance, Bitcoin has a total maximum supply of 21 million BC which are released as more transactions are verified by miners. However, XRP is “pre-mined,” which means that the XRP ledger created 100 billion XRP that were periodically publicly released.

OF this amount, 6% is owned by Ripple as an incentive to help the crypto grow and be successful in time, with another 48% held in escrow for frequent release into the market through certain sales.

XRP does not use Proof of Stake either but uses its proprietary consensus mechanism to verify and validate transactions.

The following cryptocurrencies have different mining times, including:

  • Bitcoin – with a hash rate of 110.00 TH/s, 0.00072799 Bitcoin can be mined per day.
  • Dash – depending on the mining inputs, 0.01893066 Dash can be mined per day with a hash rate of 65,000.00 MH/s.
  • Litecoin – With a mining hash rate of 9,500.00 MH/s, 0.22498243 Litecoin can be mined per day.


Does Ripple have smart contracts?

Yes, Ripple recently added a new feature that uses smart contracts.

Ripple uses smart contracts to release 1 billion XRP to the company monthly for funding business operations, incentivizing customers, and selling to accredited investors. With any unused tokens automatically returned to escrow.

Smart contracts are programs that run on platforms and ecosystems such as Ethereum, amongst others. These contracts are a collection of codes and data that reside in a specific address on the blockchain.

Smart contracts have certain rules, like any other contract, and the rules are automatically enforced through the code, making it impossible to delete the contract and making them irreversible.

Smart contracts are necessary and important because they can easily solve mistrust between parties and business partners. Ripple has recently proposed Federated Sidechains for the XRP Ledger to balance the needs associated with user requests for smart contract features.

According to the Chief Technical Officer for Ripple, smart contract functionalities are some of the most requested features that programmers and contributors to the XRP Ledger have made.

However, the company advocates against any features that could compromise the highly efficient focus that Ripple has on payments. Through the Federated Sidechains, the best of both worlds will be enabled.

Programmers can use this to add new functions like native smart contracts that can interoperate with XRP as well as the Ledger. Simultaneously, this special strategy will let XRP Ledger keep its “lean and efficient” functionalities.


Can Ripple reach $100k?

No, Ripple will not reach $100,000.

It is unlikely for XRP to even reach $1,000 unless all the major banks on earth choose XRP as a currency and the circulating supply of Ripple becomes deflationary.

IT is also unlikely because if XRP reaches $1,000, never mind $100,000. Its Market Cap will reach over $100 trillion, five times the GDP of the United States and 25% higher than the global GDP.

The problem with a hundred-thousand-dollar XRP is the massive market that it needs because Market Capitalisation is price multiplied by supply. XRP has a large supply, which is the reason for its low price, like Cardano, which is why ADA is not set to see $1,000.

XRP will never reach $100,000 even if it becomes the base layer of the global economy and the circulating supply becomes deflationary.


Can Ripple be used as currency?

No, Ripple is not meant to be used as a payment currency.

The idea that all cryptocurrencies are designed to be a method of payment is a common misconception. Many cryptos, like Ripple, were not designed to be payment currencies. Therefore it is unlikely that many merchants and retailers will ever accept XRP.

Ripple is a cryptocurrency that is designed to serve as a method of payment transfer to move money from one point to another more efficiently than, faster, and at a lower cost.


Can Ripple be tracked?

Yes, Ripple can be traced, but not in a malicious way.

The fact that XRP can be traced is a feature and not a security bug or an error. Ripple was created to improve how money is moved from one point to another. 

A difference between Ripple's technology and, for instance, Bitcoin, where transparency is concerned, is how Ripple tracks information by account.

An account is connected to an account holder, be it an individual or an entity holding an account. Suing this, banks and financial institutions can see financial activity according to the account holder.


Can Ripple be hacked?

No, Ripple cannot be hacked.

Any previous hacking attempts relate to cryptocurrency exchanges and wallets containing XRP that were hacked, and not the Ripple XRP Ledger or any other part of Ripple itself.

  • June 1, 2019 – GateHub users were targeted by a phishing scam in which 20 million XRP were stolen from 100 wallets.
  • June 2020 Ledger suffered a data breach in which an unauthorized person accessed e-commerce and marketing databases, with Leger owners receiving phishing emails that pointed them to fake Ledger applications that would trick unsuspecting users into entering the recovery phase of their wallet, allowing hackers to access their XRP funds.


Can Ripple make you rich?

Yes, Ripple can make you wealthy.

XRP may have seen some large dips, but several analysts suggest that XRP is a good funding, and its value can improve. XRP is being evaluated in many banks as a substitute for SWIFT cash transfers. This is an important factor because XRP can be amazing funding.

Ripple has the right technology to change it into a regular part of financial institution cash transfers for those who want quicker transfers at lower costs.

Ripple is one of the most promising digital currencies, and it has strategic partnerships in the monetary world, with many large institutions that have made modifications to consolidate Ripple into their organizations.

The low price of XRP implies that there is a low entry barrier for anyone, Ripple transactions are quick, and they are not expensive.

Two of the richest investors right now are Chris Larsen, who is a co-founder of Ripple, with a net worth of more than $6 billion in 2023, in addition to Jeb McCaleb, who has a net worth of $3 million.


Is it worth it to buy Ripple?

Yes, it is worth it to Buy Ripple.

When considering Ripple and XRP, investors should not compare them to other cryptocurrencies but consider their unique attributes and future development potential.

Ripple is a platform, exchange, and digital currency that has an open-source protocol designed to enable fast and cheap cross-border transactions from one point to another.

Ripple currently trades at just over $1.00, which cannot be compared to the value of Bitcoin, Ethereum, and several other cryptocurrencies, and while Ripple cannot be mined or staked, its value has grown since its inception.

Some experts predict that XRP can reach the $100 market within the next 5 years and $200 to $300 in 10 years, especially seeing that Ripple has strategic partnerships with more than 100 financial institutions, and the more banks join, the higher Ripple's value will become.

In terms of risk management, investors must realize that XRP is a highly volatile asset, and its price can jump significantly in a short amount of time. There is always the risk that a more advanced project can overtake ripple as the leading solution for banks.

In addition to this, Ripple may be irreparably damaged if it is deemed a security by SEC because many regular cryptocurrency exchanges would not keep XRP listed as a cryptocurrency.

In terms of price stability, it is important to note that XRP has been trading in different descending patterns, and it has not consistently broken the support line, suggesting a strong possibility for consistent trend reversals. XRP is highly volatile, making the price unstable and making XRP a risky investment for many investors.

In terms of profitability, Ripple is a good investment option for several reasons, including its strategic partnership with large financial institutions and the fact that it could be adopted by many institutions around the world.

XRP may see some drastic price fluctuations, but overall there is an upwards trend forecasted for the crypto long-term.


Is Ripple a good investment?

Yes, Ripple is a good investment.

Most forecasts and technical as well as fundamental analysts suggest that Ripple (XRP) is a good investment, with the price increasing steadily. There are even experts that predict that XRP will reach new all-time highs soon.

However, the SEC case against Ripple is concerning, but Ripple's management is confident about prospects. In addition to this, the price of XRP has recovered after its initial dip, with more financial institutions, keep adopting Ripple.

  • Short Term price prediction by the end of 2023 is $1.09
  • Long-Term price prediction for 2026, XRP's price is set to increase by 62.3% to $2.5 by the end of 2026.


Is Ripple Legit?

Ripple is legitimate.

According to “isthiscoinascam,” Ripple has a project safety score of 8.34/10, with the following metrics:

  • Development – 10/10
  • Sentiment – 7.2/10
  • Community – 10/10
  • Awareness – 7.27/10
  • Credibility – 8/10
  • Volume – 9/10


There are many controversies against Ripple and many other cryptocurrencies that reside in mass speculation. Ripple is not trying to overtake Bitcoin because it works with a different purpose. It aims to be a payment gateway for fast and cheap transactions used by large financial institutions.

Ripple is an open payment network where any currencies can be used, including Bitcoin.


Is Ripple’s Supply limited?

Yes, Ripple's supply is limited to 100 billion XRP.

This supply is coded into the ledger, and it cannot be changed, with Ripple holding a certain amount of XRP. Once a certain amount of XRP is used for a payment transaction, it is subsequently destroyed. This brings some scarcity to XRP by reducing the number of XRP which is in circulation.

In terms of effects, Ripples limited supply will make it more valuable as the supply depletes. In terms of other cryptocurrencies, the following cryptos also have limited supplies:

  • Bitcoin (BTC) – 21,000,000 BTC
  • Cardano (ADA) – 45,000,000,000 ADA
  • Binance Coin (BNB) – 168,137,036 BNB
  • XRP (XRP) – 100,000,000,000 XRP


In terms of price and popularity, the limited supply will ensure that XRP becomes more valuable and attractive to investors when its supply diminishes.


Does Ripple have a fixed supply?

Fixed supply means that 100 billion XRP is the total number of coins that will ever be in circulation. There will never be any more than this amount because it is a code that is written into the ledger and that cannot be changed.

Because Ripple (XRP) has a fixed supply, and there will be occasional burning of coins, Ripple can become more valuable as the supply diminishes, increasing demand and popularity for the coin, especially if more banks start using its unique technology.


Is Ripple the best Altcoin?

Ripple is the best Altcoin of its kind.

Different Altcoins serve different purposes, and Ripple is the best Altcoin and payment platform in the cryptocurrency industry. It is ranked #6 according to its market capitalization of over $50 billion, and it is ahead of competitors such as Stellar, which serve the same purpose.

There are also several other areas where Ripple performs well:

Trackability – Ripple can be tracked in the same way that a bank account can be tracked according to the account holder, but this is a feature and not a security issue.

Hacking – Ripple has never been hacked, there have been hacks on exchanges and wallets where XRP was stolen, but Ripple's technology is sound.

Security – Ripple is highly secure even if it does not use PoW or PoS, and because it is partially centralized, and the network uses trusted, reputable nodes for transaction verification.

Transactions – Ripple can execute 50,000 transactions per second, with typical verification between 3 to 5 seconds, significantly faster than other blockchains.

Technology – Ripple uses unique and innovative ledger technology, and it is the best platform that facilitates transactions between large financial institutions at faster rates and much cheaper costs.

Price Change – From launch to date, XRP's price has increased by more than $0.99, or 9,900%.

Investing – Ripple is a popular investment option, but it is very risky because of the rapid, extreme price fluctuations. Ripple has the potential to become a better investment with more financial institutions using its technology.

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between Ripple and Bitcoin?

Bitcoin is a digital currency that was created to be used as payment for goods and services, while Ripple is a payment settling currency exchange as well as a remittance system, with the focus on banks and other payment networks.

The idea behind Ripple is to provide a system that can facilitate direct transfer of assets such as money, gold, and others, settled in real-time, at reduced costs transparently and securely, providing the perfect transfer systems that are used by banks and other financial institutions.

Bitcoin is based on blockchain technology, while Ripple does not use a blockchain but has a proprietary distributed consensus ledger. Ripple uses a network of validating servers along with its native token, XRP.


XRP is a crypto token that represents the transfer of value across the entire Ripple Network, and it is different from Bitcoin, where new coins are minted (up to a certain level) as rewards for miners who offer their computing power to maintain the blockchain, whereas Ripple has a pre-mined amount of 100 XRP that was released at launch.

Ripple is better as a pay gate and platform where XRP is used to pay transaction fees to use the network, while Bitcoin is the better alternative for a currency that can be used to pay for goods and services.

XRP is not good to be used as a currency because that is not what Ripple's developers intend for it. Thus it is not likely to be accepted by retailers and merchants.

  Bitcoin Ripple
Price change 20/21 +$400% +840%
Market Cap $1 Trillion+ $50 Billion+
Past Hacks None None
Popularity Very High Very High
Altcoin Rank #1 – Original Crypto #6

What is the difference between Ripple and Ethereum?

Both Ethereum and Ripple are two of the three largest cryptocurrencies in the market. Both ETH and XRP have high valuations after Bitcoin, attributable to the benefits and the services that are offered to market participants.

Ripple is the company that is behind the XRP currency, and it is a company that is working tirelessly to offer improved cross-border payment services, allowing for international transfers to be performed in a few seconds, with no fees.

On the other hand, Ethereum was designed to be a blockchain network and platform where smart contracts can be run and decentralized applications (DApps) can be built, run, and published. 

While Ripple developed XRP and its various solutions, Ethereum has a decentralized network of developers, with several individuals that work to improve its technologies.

Both Ripple and Ethereum have different consensus mechanisms, with Ethereum using a PoW mechanism to verify transactions, the same as Bitcoin and Litecoin.

A PoW consensus algorithm provides high-security levels, but it is less efficient than a Proof of Stake (PoW), which Ethereum is inevitably changing to.

Ripple uses a unique network of servers known as the Ripple Protocol consensus algorithm (RPCA), which allows for the network to process secure, fast, and efficient transactions, which makes it especially useful for financial institutions that carry out cross border transfers.

Ethereum is better as a platform where DApps and smart contras can be developed, with ETH also used as a currency like Bitcoin, while Ripple is better as a facilitator for cross-border transactions.

  Ethereum Ripple
Price change 20/21 +880% +840%
Market Cap $400 Billion+ $50 Billion+
Past Hacks None None
Popularity Very High Very High
Altcoin Rank #2 #6

What is the difference between Ripple and Dogecoin?

Ripple (XRP) was established in 2012 to provide safe, fast, and free money transactions of any amount without users subject to recurring billing. Ripple accepts payments in fiat, commodities, cryptocurrencies, and any other units.

XRP is a crypto that solely exists in its own ecosystem, with one coin made up of a million pieces, also known as drops. Ripple's initial activities started when it issued 100 billion XRP, its total supply, and any restrictions to prevent additional issuances.

Dogecoin, on the other hand, was initially created as a “fun” variant of Bitcoin, with a Shibu Inu (Japanese dog breed) as its symbol and the mascot of Dogecoin well-known in internet memes.

Dogecoin uses a Scrypt algorithm, and it has a limitless supply, making it the ideal candidate for a faster, more flexible, and more consumer-friendly alternative to Bitcoin.

Dogecoin is better as a virtual currency that is used to pay for products and services, while Ripple is better as a financial settlement and repatriation system that is specifically designed for use by banks and financial networks.


The goal that XRP has is to create a method for the straight transfer of ownership, which is carried out in real-time, and which is a faster, transparent, and more secure option to other methods used by banks. However, Dogecoin is better as a store of value or a means of transaction and payment.

Dogecoin was built on blockchain technology, whereas Ripple uses a consensus mechanism database that consists of a system that has verifying machines and XRP.

Ripple uses smart contracts to release $1 billion XRP to the company to assist in funding operations, providing customers with incentives, and selling coins to approved investors, with any unused funds returning to escrow automatically. Dogecoin does not support smart contracts.

XRP has a maximum supply of 100 Billion XRP, while Dogecoin does not have a limited or maximum supply. Lastly, XRP cannot be mined while DOGE can be mined, with miners rewarded 10,000 DOGE for each block mined.

  Dogecoin Ripple
Price change 20/21 +7,300% +840%
Market Cap $32.3 Billion+ $50 Billion+
Past Hacks None None
Popularity Very High Very High
Altcoin Rank #10 #6


What is the difference between Ripple and NEO?

NEO is a next-gen smart economy platform to register, trade, and circulate different types of assets on the proprietary NEO blockchain, and it also aims to be an open network for a smart economy.

NEO hosts smart contracts, and there are different projects designed to support these contracts. With NEO being a prominent one, NEO also supports the development and publishing of DApps, functions that Ethereum serves more than Ripple.

Ripple is a decentralized peer-to-peer network that offers a digital payment protocol and allows seamless money transfer. Ripple is powered by a network of servers and is not based on a blockchain but uses Ledger technology.

Ripple is better in serving to facilitate transactions between financial institutions, while NEO is better at allowing developers to build and deploy smart contracts and DApps.

  NEO Ripple
Price change 20/21 +160% +840%
Market Cap $3.3 Billion+ $50 Billion+
Past Hacks None None
Popularity Medium Very High
Altcoin Rank #50 #6


What is the difference between Ripple and NFT?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Ripple, on the other hand, is fungible, which means that one XRP has the same value and characteristics as another XRP.

Ripple is used as a platform where international transactions can be carried out fast, securely, and at a reduced price. The market cap for XRP is over $50 billion, while the NFT market is expected to rise to over $1 billion by the end of 2023.

NFTs consist of any digital collectibles such as art, games, video clips, and many other tokens that often sell for millions at auctions.


What is the difference between Ripple and Litecoin?

Ripple was developed to make cross-border transactions more secure, faster, and cheaper. From its inception, Ripple started growing, and it started attracting large corporations and financial institutions, becoming more popular to be used to facilitate cross-border transactions.

This led to Ripple concentrating more on the larger picture to make transactions easier for these large corporations, resulting in Ripple leaving individual transactions behind.

Litecoin, on the other hand, is an open-source system that uses Scrypt technology. Litecoin is also used for transactions, but Litecoin was instead created with the same purpose as Bitcoin.

Litecoin, however, has more functions than when compared to Ripple. For example, Litecoin can be used in daily transactions that can be done on a peer-to-peer basis.

Ripple is better used as a mechanism for cross-border transactions, while Litecoin is better used for daily transactions. Ripple is used by large corporations and financial institutions, while Litecoin is used for peer-to-peer transactions.

Litecoin has more than one function, and it also includes cross-border transactions in addition to peer-to-peer, daily transactions, while Ripple is used for a single function associated with facilitating cross-border transactions.

  Litecoin Ripple
Price change 20/21 +130% +840%
Market Cap $12.5 Billion+ $50 Billion+
Past Hacks None None
Popularity High Very High
Altcoin Rank #15 #6


What is the difference between Ripple and Solana?

Solana is a programmable blockchain that tries to perform high-speed transactions without risking its decentralization. Solana uses proof of history, in addition to other features, to reach consensus, and unlike Bitcoin and other projects, Solana employs smart contracts.

In addition, Solana also uses the Sealevel engine, which allows for transactions to be processed in parallel, making it the first blockchain to do so. Ripple is a peer-to-peer platform and payment settlement system that processes transactions from around the world.

Both Solana and Ripple have a throughput of 50,000 transactions per second, but both work in different ways. Solana is based on a blockchain that uses a different consensus mechanism, and Ripple is not based on any blockchain but uses Ledger technology.

In addition to this, Solana is also a platform where smart contracts, NFTs, DeFi, and Decentralised Exchanges, can be built and deployed.

  Solana Ripple
Price change 20/21 +160% +840%
Market Cap $48.9 Billion+ $50 Billion+
Past Hacks None None
Popularity Very High Very High
Altcoin Rank #7 #6

What is the difference between Ripple and Cardano?

Cardano is one of the competing Proof of Stake blockchains that allows ADA holders to help operate the network and to vote on changes to its software.

Ripple challenges traditional transactions and offers a new way to operate transactions, with a system for payment settlements recorded with its native token, XRP.

Cardano is primarily used to allow transactions in ADA and to allow developers to build secure DApps which is powered by it.

Ripple is better and ores suited to complement traditional payments. This is done by migrating transactions with financial institutions to open, transparent infrastructure.

Cardano uses Ouroboros that allows users to validate transactions and to earn newly minted ADA coins. XRP Ledger allows users to send and receive crypto using public and private key cryptography, allowing servers to send transactions.

XRP differs from Bitcoin and many other cryptos because it does not use mining or staking to secure its ledger or to validate transactions. The only nodes which are allowed to validate transactions are the unique nodes.

  Cardano Ripple
Price change 20/21 +2,100% +840%
Market Cap $73.7 Billion+ $50 billion+
Past Hacks None None
Popularity Very High Very High
Altcoin Rank #4 #6

What is the connection between Ripple and Santander?

According to the World Bank, there are significant amounts of remittances made to middle-income countries, and there is a lot of friction between entities in the current financial system.

Many institutions have started using Ripple to combat this, including Santander, UBS, and Union Credit.

For instance, Santander has built a “Payment Corridor” between the United States and Latin America. This was done using the xCurrent software from Ripple, which allows for fast and free money transfers.

However, Santander does to use XRP itself, but the Ripple platform allows for users to issue their own tokens that will facilitate transfers. This has subsequently increased the use of Ripple.


Is Ripple better than other cryptocurrencies because it is used by banks?

Yes, Ripple is currently better than other cryptocurrencies because of its strategic partnerships with more than 100 financial institutions around the world.

There is a consortium of 61 Japanese banks alongside Santander, the Commonwealth Bank of Australia, and Fidor Bank, who have all stated that they are either trialing or implementing different applications that use the Ripple Network’s payment system.

This is a factor that puts Ripple in front of other cryptocurrencies that may be attempting the same.