Ripple – the payment system revolution

What is Ripple?

Ripple Labs is a private software company that developed the Ripple protocol, an open-source protocol that includes the XRP ledger and RippleNet, a series of payment products for institutional use (banks, non-financial institutions and digital currency exchanges).

The Ripple Labs company was founded in 2012 and is based in San Francisco, California. Its original name was OpenCoin, but it was renamed Ripple in 2015.

Modernize your financial infrastructure

Ripple's long-term goal is to build a network that enables the simultaneous and therefore fastest possible processing of numerous transactions. This unique advantage is intended to attract companies such as large banks, remittance services and payment service providers that are interested in the technology. Ripple is therefore in competition with established payment methods such as SWIFT payments rather than with other cryptocurrencies.

What is XRP?

It is a cryptocurrency developed, issued and partially managed by the US company Ripple Labs. One of the many products of Ripple Labs, XRP was developed with the aim of improving the efficiency of international payments, particularly in the banking sector.

Unlike Bitcoin or Ethereum, the Ripple network does not use a blockchain and XRP does not depend on a proof-of-work algorithm. As a result, Ripple requires less energy and computing power to produce, while also enabling faster transaction speeds.

XRP can be sent directly without intermediaries, making it an ideal tool for connecting two currencies quickly and efficiently. The main purpose of XRP is to act as an intermediary in currency exchange.

How XRP works

The XRP ledger uses distributed ledger technology to support the transfer of tokens representing fiat currencies, cryptocurrencies or other units of value. Since the protocol is fully disclosed, anyone can access it without prior approval from Ripple Labs. This allows banks and non-banks to integrate the Ripple protocol into their own systems.

This ledger is maintained by various independent participants in a global ‘XRP community’. Each XRP transaction requires the approval of the independent validator nodes. This approval is referred to as consensus and serves as a final and irrevocable settlement.

Facts, figures and price history of XRP

There is more to Ripple than just the cryptocurrency XRP.

Unlike Bitcoin and other cryptocurrencies, which position themselves as independent alternatives to traditional currencies and banks, Ripple basically aims to achieve the opposite. As a global settlement network, Ripple works closely with banks, payment service providers and other financial institutions. XRP is designed to serve as a flexible ‘intermediate currency’ to facilitate the exchange of any unit of value.

‘XRP’ is a digital currency for people who believe that traditional banking needs to be modernised, but not to the extent that other cryptocurrencies suggest.

XRP's value comes from its processing speed and its appeal to institutions, and it represents the middle ground between traditional finance and decentralised finance.