What is Ripple / XRP?


What is Ripple / XRP? Ripple is a technology company and the inventor of XRP, an independent digital asset. 


Ripple CEO discusses XRP and the requirement for a Global Framework:



In a recent interview with Bloomberg, Brad Garlinghouse made it clear that they are working towards replacing SWIFT.

Cory Johnson the Chief Marketing Strategist at Ripple said:

Our competition is this banking consortium that came together in 1973… It’s called SWIFT… You know what it isn’t? It is not ‘swift’! It takes 3-5 days to move money… It’s one-dimensional messaging… It has about a 4% error rate… You send a message to move money, and then you wait, and maybe you get something back… It’s more akin to a homing pigeon than a text message or email.”


Week beginning 17 September 2018, altcoin Ripple’s (XRP) price went through the roof. It has seen an unprecedented 140 percent growth over the past seven days, up almost 63 percent in the past 24 hours alone.  FOMO or adoption?  See various theories suggested by Cointelegraph:-

xRapid’s launch – xRapid is a blockchain-backed tool designed by Ripple for easing cross-border fiat transfers between financial institutions.

PNC joining RippleNet – PNC, one of top ten largest U.S. banks with 8 million customers and retail branches in 19 states will use blockchain tech to streamline payments into and out of the country.

Ripple dodging the ‘security’ label – In a recent interview with CNBC, Sarbhai countered concerns that XPR is likely to come under a security classification in the U.S. — as several high-profile and ongoing lawsuits allege.

FOMO – The massive surge in price could also be explained by good old ‘fear of missing out,’ or FOMO — a particularly powerful force on the crypto market.

Full article here – Reasons Behind Ripple’s Leap



XRP is not similar to most cryptocurrencies, for example, Bitcoin which uses a proof-of-work algorithm and new coins are generated through a mining process, becoming more difficult over time.


XRP transactions are powered through the “centralised” blockchain – Ripple CTO, David Swarts, explains the inherently decentralized nature of the XRP ledger (blockchain) – while Bitcoin and Ethereum are becoming more centralized over time, the XRP Ledger is getting more decentralized.


Proof-of-Work is a technological dead-end according to Swarts, but he does hold Bitcoin


I don’t see XRP being the only digital asset any time soon – if ever” states David Schwartz, chief technology officer at Ripple


According to the Ripple website: “Ripple provides one frictionless experience to send money globally using the power of blockchain. By joining Ripple’s growing, global network, financial institutions can process their customers’ payments anywhere in the world instantly, reliably and cost-effectively. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets.”


Ripple the company

The Company was founded in 2012, originally named Opencoin, renamed Ripple Labs in 2013, and subsequently rebranded to Ripple on 6 October 2015.  Ripple has offices in San Francisco, New York, London, Sydney, India, Singapore and Luxembourg and they have more than 100 customers around the world.


What is XRP?

XRP is a digital asset built for use in enterprise as it provides banks and payment providers a “reliable and on-demand option to source liquidity for cross-border payments”. A total of 100 billion XRP were created at the time of the project launch and a few coins are destroyed every time a transaction takes place.  Anyone can own XRP and trade with XRP.




“Bitcoin is slow when you talk about moving money” Cory Johnson 26 July 2018 – Ripple Chief Market Strategist Cory Johnson on the future of blockchain and cryptocurrency.




Q2 2018 XRP Markets Report


What are the benefits of XRP

There are numerous benefits to using XRP for cross-border payments:


XRP payments settle every 4 seconds


XRP can handle 1,500 transactions per second and could also handle the same throughput as Visa, which is approximately 50,000 transactions per second (Visa info as at 15 July 2017)


XRP is open-source technology built on the principles of blockchain technology.


XRP was established in 2012 and has a record of stable technology and governance – hence the adoption by more than 100 financial institutions globally.



Can XRP be mined?

XRP works differently to other cryptos such as Bitcoin or Ethereum.  Ripple has positioned XRP as the global settlement network. XRP cannot be mined so to obtaining XRP can only be done by buying the currency from exchanges.






Is XRP a security?


As reported by CoinDesk, a lawsuit filed in the Superior Court of California (San Mateo County) claims that Ripple “created the XRP token and then used sales of the tokens in order to fund its operations and the development of the XRP ecosystem.

The suit claims:

“Here, the XRP offered and sold by the defendants had all the traditional hallmarks of a security, yet defendants failed to register them as such. The purchase of XRP constitutes an investment contract, as XRP purchasers, including plaintiff, provided consideration (in the form of fiat, such as U.S. dollars, or other cryptocurrencies) in exchange for XRP. XRP purchasers reasonably expected to derive profits from their ownership of XRP, and defendants themselves have frequently highlighted this profit motive.”


This follows two previously filed lawsuits. Brad Garlinghouse, CEO of Ripple, has previously stated that “XRP is not a security for three reasons: if Ripple, the company, shuts down tomorrow,  the XRP ledger will continue to operate; it’s an open-source, decentralized technology …. if you buy XRP, [you are] not buying shares of Ripple – buying XRP doesn’t give you ownership of Ripple.”


Get your copy of What is Bitcoin

This e-book on Amazon explains what Bitcoin is, it explains that Bitcoin (BTC) is a virtual currency, digital, not physical, and independent of banks. Useful links and resources for the newbie and advanced Bitcoiner or cryptocurrency enthusiast.


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