What is Ripple? (XRP)

The Beginner’s Guide

Launching in 2013, XRP aims to complement traditional payments, migrating transactions that occur today between databases controlled by financial institutions to a more open infrastructure.

One of the more ambitious cryptocurrencies to go live in the wake of Bitcoin, XRP is notable for a design that sparked continuing discussion about how blockchains can be architected and the use cases they should attempt to address. 

That’s because the XRP Ledger introduced a new way of operating a blockchain’s transaction and records system, one proponents argue makes it more suitable for regulated entities that must follow strict laws on money transmission. 

Unlike Bitcoin, which allows anyone to contribute computing power to validate transactions and secure the software, the XRP Ledger grants this power only to approved participants.

Because nodes do not earn XRP for maintaining a correct version of the ledger’s history, all 100 billion XRP in existence were created and distributed to individuals and companies (as well as the general public) at launch through gifts and online giveaways. 

If these design decisions continue to cause debate, so too do parts of the project’s go-to-market strategy, which relied on the creation of a for-profit company, as opposed to a non-profit (a model that would later become the norm). 

The company, called Ripple, now acts as principal steward in the funding and development of the XRP Ledger and plays an outsized role in its development and digital economy.

what is ripple xrp

Ano ang pagkakaiba sa pagitan ng Ripple at XRP?

Ngayon, ang Ripple ay isang kumpanya, ang XRP Ledger ay isang software at ang XRP ay isang cryptocurrency. Gayunpaman, hindi palaging iyon ang kaso.

Ang XRP Ledger, ang software na nagpapagana ng paggamit ng XRP cryptocurrency, at ang Ripple, ang kumpanya na nagtatag dito upang itaguyod at paunlarin ang XRP, ay parehas na sumailalim sa isang serye ng mga rebrandings sa mga nakaraang taon bilang tugon sa pabago-bagong market dynamics.

Ang Ripple, halimbawa, ay itinatag noong Setyembre 2012 bilang OpenCoin. Kalaunan binago ng nagsi-simulang kumpanya ang pangalan nito sa Ripple Labs noong 2013 bago napagkasunduan na maging Ripple sa huling bahagi ng 2015.

Gayundin, ang XRP Ledger ay tinawag na Ripple open payment system, ang Ripple network at ang Ripple Consensus Ledger (RCL), bago ito tawaging XRP Ledger.

Ang XRP, sa kaibahan, ay palaging mayroong ticker symble XRP, kahit na ang mga unit ng cryptocurrency na ito ay karaniwang tinatawag na "ripples" o "ripple credits" sa mga unang araw ng proyekto.

Who created XRP?

Hindi tulad ng ibang mga cryptocurrency, ang XRP ay walang single prominent creator o founding figure. 

Gayunpaman, mayroong mga indibidwal na nakasama sa pagsisimula ng teknolohiya nito at mga nauugnay na entity ng negosyo. 

Kasama dito ang mga founder ng OpenCoin (now Ripple), ang technologist na si Jed McCaleb (ang nagtatag ng Mt Gox, ang unang matagumpay na bitcoin exchange, at ang Stellar, ang software na nagpapatakbo ng XLM cryptocurrency) at si Chris Larsen, ang nagtatag ng mga fintech na kumpanya, eto ang E-LOAN at ang Prosper.

Si McCaleb ay nabigyan ng credit dahil sa novel technical design ng XRP Ledger.

Ang iba pang mga kilalang mga contributor sa teknolohiya ng XRP, kasama si:

  • Stefan Thomas, ang contributor sa Bitcoin Core software at ang former CTO ng Ripple

  • David Schwartz, co-author ng orihinal na Ripple white paper at ang kasalukuyang CTO ng Ripple

  • Arthur Britto, co-author ng orihinal na Ripple white paper.

Paano ginagamit ng Ripple ang XRP?

Bagaman ang Ripple at XRP ay nilikha ng sabay, ang ambisyon ng kumpanya ng Ripple ay masasabing pinalawak ng higit ang XRP.

Hanggang sa 2019, isang produkto lng ng Ripple ang gumamit sa XRP cryptocurrency bilang default, ito ay ang liquidity solution xRapid . Ang iba pang mga produktong legacy ng Ripple kabilang ang xVia at xCurrent (na nakatuon sa sending at processing payments) ay hndi nangangailangan ng XRP, ngunit maaaring kumunekta sa XRP Ledger.

Gayunman, hanggang sa 2020, ang Ripple ay pinag-isa lahat ng tatlong produkto sa ilalim ng isang karaniwang product offering na tinatawag na RippleNet, isang offering para 300 na mga financial firm kung saan ito nakipag-partner. 

Sa pamamagitan ng RippleNet, ang mga kumpanyang ito at maaring tumanggap ng access sa tinatawag ng Ripple na "on-demand liquidity", funding foreign accounts sa pamamagitan ng pagbebenta ng XRP para sa fiat currency sa isang digital asset exchange at pag-convert ng mga fund sa kanilang ninanais na currency sa ibang digital asset exchange.

Ang Ripple ay kaakibat ng magkakahiwalay na pagsisikap na tinatawag na Interledger Protocol, isang software na naghahangad na mag facilitate ng mga transaksyon sa pagitan ng mga cryptocurrency at mga bank ledger. Isang open-source na pagsisikap, hindi ito kinakailangan ng XRP, kahit na maaari itong kumunekta sa XRP Ledger. 

PInananatili ng kumpanya ang lahat ng mga tool nito, kabilang ang XRP, na balang araw ay mag papaandar ng "Internet of Value", kung saan ang mga currency ng gobyerno, tradisyonal na mga asset at mga cryptocurrency ay maaaring i-trade ng malaya at ng may maliit na friction sa buong mundo.

Paano gumagana ang XRP ledger work?

The XRP Ledger was not a fork of the Bitcoin (BTC) blockchain, meaning it did not use its code. However, it did draw on a number of aspects of Bitcoin’s design. 

Like Bitcoin, the XRP Ledger allows users to send and receive cryptocurrency using public- and private-key cryptography. Transfers between addresses require digital signatures.

The XRP Ledger, however, does not use mining or require specialized computing hardware to secure its ledger and validate transactions. Rather, the XRP Ledger enables servers to send transactions for consideration by its network. 

Only transactions validated by “unique nodes,” permissioned servers that maintain a “unique node list,” can create consensus on the network as to which transactions are valid. 

Using this more trusted design, XRP nodes can quickly validate transactions, provided at least 80% of participants deem them to be valid according to software rules.

Why does XRP have value?

The XRP Ledger’s software maintains a limit on the amount of its cryptocurrency that can ever be created, capping this total at 100 billion XRP. 

Of this supply, Ripple initially gave away 55 billion to users on forums through giveaways. The remaining XRP was to be escrowed by the company to fund its technology development.

While the XRP Ledger does not require “transaction fees,” it does mandate that a small amount of XRP be put up by the sender to be destroyed and deducted from the total supply. 

Still, this doesn’t put a large upward force on price activity. According to the XRP website: “At the current rate of destruction, it would take at least 70,000 years to destroy all XRP.”

Public announcements aside, there remain allegations that available data providers do not have a clear record of XRP’s supply nor clear insight into how its market functions. 

Prompting debate is that Ripple acts as a principal market maker for the XRP economy, selling the cryptocurrency to help pay the costs of maintaining the XRP Ledger’s technology. 

Since 2017, Ripple has locked away some funds in an XRP Ledger-based escrow system, where they are released on a monthly basis.

Why use XRP?

Banks and financial institutions have so far tested both Ripple’s technology and the XRP Ledger primarily as alternatives for cross-currency and international payments, areas where frictions between intermediaries remain high.  

The most notable Ripple customer is now MoneyGram, which began using RippleNet in 2019.

This progress with financial institutions has led to speculation that the XRP Ledger could come to serve as a kind of distributed alternative to SWIFT, the financial messaging platform used by banks for money transfer and messaging.

Investors continue to show interest in XRP and its ambitious roadmap, viewing it as a hedge should it turn out regulated financial entities do not or cannot use bitcoin or other cryptocurrencies in traditional payments or to improve back-end money transfer.

A number of internet users have also turned to XRP for small consumer payments in consumer use cases like tipping. 


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