XRP

XRP sits as the world’s third-largest cryptocurrency by market cap. Over $180 billion. Pretty impressive. Unlike Bitcoin and its energy-hungry mining approach, XRP uses something different - a consensus system that completes transactions in seconds. Cheap too.

This guide covers the XRP story. Whether you’re just dipping your toes into crypto waters or you’ve been swimming these currents for years, you’ll see how XRP might be changing global finance. It seems to be making waves.

Key Points

• XRP ranks third in cryptocurrency market cap, settling payments in 3-5 seconds with tiny fees.
• XRP isn’t Ripple. One’s a digital asset, the other’s a company. Different things entirely.
• The 2023 SEC case ended with XRP sales to regular folks deemed not securities, which kind of sparked new interest from big players.
• XRP handles 1,500 transactions per second costing about $0.0002 each. Leaves Bitcoin in the dust for payments.
• Only 100 billion XRP will ever exist, and fees get burned forever. Creates scarcity unlike those inflationary coins.
• Banks like Santander, Standard Chartered, American Express? They’re using this tech already.

What is XRP Cryptocurrency?

XRP lives on the XRP Ledger. Open-source. Permissionless. Been around since 2012. Built for payments, not hoarding. Works as a bridge currency. Makes swapping between crypto pairs quick and cheap. Settles in 3-5 seconds. Not like Bitcoin - this one’s built for speed.

The specs are interesting. $0.0002 per transaction. Ridiculously cheap. No energy-intensive mining. The consensus protocol barely sips energy. Green crypto, if you will. The ledger hasn’t missed a beat since 2012. Over 70 million ledgers closed. No major security problems. Solid track record.

XRP vs. Ripple: Understanding the Key Differences

People mix these up all the time. Not the same thing.

Key Relationship: Ripple uses XRP in some products. But XRP exists on its own. Ripple donated 80 billion tokens for development. Not entirely clear to everyone, but the ledger runs independently from Ripple’s business.

What Problems Does Ripple Aim to Solve?

International payments are broken. Ripple saw this.

1. International Payment Inefficiencies

Sending money abroad? Wait 24-48 hours. Maybe longer. Multiple banks get involved. Each takes a cut. Each adds time.

The correspondent banking system feels ancient. Banks need relationships with other banks. A money daisy-chain forms. More cost. Less transparency. Too many failure points. Banking relationships are complicated.

2. High Transaction Costs and Currency Conversion

Wire money overseas? That’s $25-50 gone. Convert currency? Banks charge 2-4% above market. Brutal for small transfers.

You never know the real cost upfront. Banks hide it. Customers pay without knowing better options exist.

3. Limited Access and Business Hours

Banks close. Weekends. Holidays. Night time. Money stops moving.

Some places barely have banks at all. Millions underserved.

Banking relationships are actually shrinking. Regulation costs too much. Banks cut ties. “De-risking” they call it. Fewer options. Higher costs for what remains.

The Story of XRP and Ripple

It all started with Ryan Fugger back in 2004. RipplePay. A dream of decentralized money. But XRP truly began in 2011 when three developers - Jed McCaleb, David Schwartz, Arthur Britto - saw Bitcoin’s flaws. Too slow. Too expensive. They built something better.

2012 saw the XRP Ledger launch. XRP became its native currency. Fast. Energy-efficient. Chris Larsen joined that year. Together they created OpenCoin. Later Ripple Labs. Finally just Ripple in 2015.

Their vision? Global payments in seconds. Minimal fees. Small environmental footprint. David Schwartz, now CTO, designed the consensus mechanism. No mining needed. Still secure. Still decentralized.

How Does XRP Work? Technical and Functional Explanation

XRP works differently. Not your typical cryptocurrency.

1. Consensus Mechanism and Network Security

No mining here. XRP uses federated consensus. Trusted validators vote on transactions. Need 80% approval from validators on each server’s unique node list. Democratic. Efficient.

Over 150 validators worldwide now. Universities. Exchanges. Businesses. Individuals. Distributed. No single point of failure. Yet blazing fast. Every 3-5 seconds, consensus happens.

By September 2025, XRP looks stronger. The SEC lawsuit ended well in 2023. XRP sales to retail investors? Not securities. This clarity changed everything. Big financial institutions jumped in. Values climbed. Analysts see more growth through 2025-2026 as adoption increases.

The tech fundamentals haven’t changed. 1,500 transactions per second. $0.0002 per transaction. Traditional payment systems can’t compete. Ripple’s On-Demand Liquidity service using XRP has spread to over 300 financial institutions globally. Real-world problems, real-world solutions.