What Is Ripple (XRP) and How Does It Work?

XRP is a cryptocurrency and the native token of Ripple, a payment settlement system and currency exchange network.

How Does XRP Work?

XRP is built on blockchain technology, which is a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain XRP occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.

Use cases of Ripple (XRP)

1. Cross-border payments: Cross-border payments with XRP eliminate the need for intermediaries and currency conversions, reducing transaction time and costs. This makes cross-border payments faster, more reliable, and more affordable. XRP acts as a bridge currency, providing a secure and efficient way to transfer value between countries, especially for countries with weaker currencies.

2. Remittances: Remittances with XRP offer a more cost-effective and efficient alternative to traditional methods of sending money abroad. XRP’s fast transaction times and low fees make it an attractive option for people sending money to their loved ones, who can receive funds in real time with minimal costs. Furthermore, the use of XRP eliminates the need for multiple currency conversions, reducing the risk of exchange rate fluctuations and ensuring that the recipient receives the full amount intended.

3. Currency Exchange: Currency exchange with XRP provides a more stable and secure way of exchanging different currencies. By using XRP as a bridge currency, the risk of fluctuations in exchange rates is reduced, and the cost of currency conversion is minimized. This makes currency exchange faster, more reliable, and more cost-effective, providing a better experience for individuals and businesses who need to exchange currencies frequently.

4. Corporate transactions: Corporate transactions with XRP allow companies to send large amounts of money to other countries quickly and efficiently. XRP eliminates the need for intermediaries and reduces the time and cost associated with traditional cross-border transactions. This makes cross-border payments between companies faster, more reliable, and more affordable, providing a competitive advantage for businesses and improving their bottom line.

5. Micropayments: Micropayments with XRP allow for small digital transactions to be made with ease and efficiency. XRP’s fast transaction times and low fees make it ideal for micropayments, such as online content purchases and small digital transactions. This makes it possible for individuals and businesses to make small, frequent payments without incurring high transaction costs, leading to a more convenient and accessible online payment experience.

History of Ripple (XRP)

Ripple (XRP): The Wave of Future Digital Currency | CryptoGazette -  Cryptocurrency News

XRP was founded by Chris Larsen and Jed McCaleb in 2012. Ripple (XRP) was founded by Chris Larsen and Jed McCaleb in 2012

Pros and Cons of Ripple (XRP)


Decentralized: In the traditional banking system, a bank can decide to freeze your account and seize your assets at any moment. Your identity is also tied to any transaction you make with your bank card. As long as you hold your crypto on a decentralized exchange (DEX) or hardware wallet, it cannot be seized because it is in your custody.

No middleman: Ripple eliminates the need for middlemen by using decentralized, peer-to-peer networks to facilitate transactions. These networks use distributed nodes to verify transactions, without the need for a central authority or intermediary.

Faster, cheaper transactions: Thanks to their blockchain technology, cryptocurrencies such as Ripple enable users to make local and global money transfers much quicker than using a bank. TransferringRipple is also a lot cheaper than bank transfers.

Opportunities for big gains from investments: The crypto market cap (total value) has skyrocketed over the past decade, with its quickest growth in 2021 when it reached $3 trillion. Many crypto stocks are priced below $1 when they are first released and have the potential to increase to hundreds or thousands of dollars like Bitcoin or Ethereum.


Not completely anonymous: A big claim of cryptocurrency is that it is anonymous, so transactions cannot be traced back to your identity. Unfortunately, this is not accurate. Crypto is actually pseudonymous. Your crypto transactions are documented on a public ledger, so it is possible for anyone to trace the trail of the transactions back to you.

Prone to hackers: Because of the earning potential that comes from holding coins like Ripple, crypto wallets and exchanges are often targeted by cybercriminals who want a piece of the pie.

Volatility: It’s very common to suffer financial losses with cryptocurrency because they do not have a stable price. For example, you could buy a crypto coin at $216 one day only for the price to drop to $0.33 the next day.

Lack of user protection: Ripple transactions are irreversible, so there is no way to reverse or cancel a transaction once it has been completed.

Where To Buy Ripple (XRP)

You can trade Ripple on major crypto exchange platforms. You are able to buy, sell or use the token for trading on both centralized and decentralized exchanges.

Centralized exchanges:

1. Binance

2. Coinbase

3. Huobi Global

Decentralized exchanges:

1. Uniswap

2. Crypto.com

3. Pancakeswap

Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.

XRP ratings

XRP Supply

Current supply: 50,803,611,248 XRP

Max supply: 100 billion XRP

XRP Liquidity

Rating: High

XRP is available on the majority of crypto exchanges and with a high amount of XRP trading pairs because it is a well-established cryptocurrency with major partnerships such as American Express and Bank of America.

XRP Developer Engagement

Rating: High

Ripple has one of the most active cryptocurrency project code repositories and it can be viewed on Github.

XRP Network Speed

Rating: Fast
Transaction Time: 3-5 seconds

XRP Disbursement

Rating: Low

The Ripple team is the largest owner of XRP with 5.56 billion coins in their account. In addition, the company controls what portion of XRP’s reserves enter circulation each month.