With so many cryptocurrencies out there, sometimes it can be confusing as to the difference between them.
And with more and more people investing and getting interested in cryptocurrencies, there are plenty of options out there to research and to understand.
Cryptocurrency could be a new major part of our lives however there are many people who still don’t know the difference between the types of coins.
One of the biggest coins out there is XRP, or Ripple as it is called, that is the fourth biggest cryptocurrency on the market.
But what is Ripple and what sets it out from other cryptocurrency? Here’s everything we know about the coin and what set it out from the pack.
What is XRP?
XRP is a cryptocurrency run by the company Ripple however, people commonly call the coin Ripple after the company.
Like other cryptocurrencies like Ethereum, it is a platform and a currency to allow fast and cheap transactions.
Bitcoin transactions can take a while whereas Ripple is supposed to be quick and easy with little cost.
Unlike Bitcoin, XRP coins are not mined and is overseen by a private company. Bitcoin is based on the blockchain concept, a public ledger of verified transactions and record-keeping.
According to Investopedia, XRP is a technology that is mainly known for its digital payment network and protocol. Aside from the cryptocurrency XRP, Ripple is perhaps even better known as a payment settlement, asset exchange, and remittance system that works more like SWIFT, a service for international money and security transfers that is used by a network of banks and financial intermediaries.
Ripple minted the entire supply when the network was launched, and Ripple intermittently releases portions of the supply from an escrow and sells them on the open market
Out of the total 100,000,000,000 supply of XRP, over 45 billion is currently in circulation.
What is cryptocurrency?
Cryptocurrency is an asset that can be exchange for goods and services, much like normal money.
However, cryptocurrency is unique as it is typically decentralised so there is no control from government interference. Cryptocurrency uses something called a blockchain.
A blockchain is spread across many computers that manages and records transactions.
Cryptocurrency can be mined by people by using computers. By mining cryptocurrency, people are rewarded small amounts of Bitcoin or another crypto for doing so.
What is Ripple?
Ripple Labs is the company behind XRP, or Ripple as it is called by cryptocurrency investors.
Ripple the company is unique as it is one of the only companies overseeing a cryptocurrency and maintain the Ripple network.
It was originally named Opencoin and renamed Ripple Labs. However, at the time of writing, Ripple Labs is embroiled in a legal dispute with the U.S. Securities and Exchange Commission (SEC)
It is accusing Ripple Labs of harassment, requesting that the court limit the payment giant’s access to internal SEC documents.
It was founded by Chris Larsen and Jed McCaleb.