Ripple And XRP

People are often surprised to learn that Ripple and XRP (aka Ripple Digital Asset) are not the same thing. The confusion is understandable, since they have the same name and the same origin! However, there are important differences that need to be clarified.

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What is Ripple?

The company was the founder with creator of the Ripple Protocol, an open source protocol that includes the Ripple Consensus Ledger (RCL) and RippleNet, a suite of payment solution products marketed to banks, non-financial institutions with digital currency exchanges.RCL uses distributed ledger technology to facilitate the transfer of tokens that represent fiat currency, cryptocurrency or any other unit of value. This allows banks and non-bank actors to incorporate the protocol into their systems, thus completely separating the company from Ripple. Network participants validate transactions by consensus.

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What is XRP?

RCL is often confused with XRP (also known as Ripple Digital Asset). XRP is RCL's native token used to facilitate money transfers between different currencies across the network.100 billion XRP units were initially created, an official number that will neither increase nor decrease according to its protocol. XRP was created before Ripple Labs, the company was founded. The creators of XRP gifted 80% of all XRP to the company by keeping 20 billion units for themselves. This aspect of XRP is one of the reasons banks and businesses have embraced the digital currency.One of XRP's main functions is as a bridging currency. Traditional settlement systems use they USD as a common currency when converting money. XRP was designed with the goal of one day replacing the US dollar as the settlement currency of choice for financial institutions. By first converting fiat currency value to digital XRP instead of USD, exchange rate fees and margins can be eliminated while processing times will be accelerated.

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what the wave survive without XRP?

Ripple, the company, could exist without XRP.In addition to creating RCL Ripple, a suite of products called RippleNet is being marketed as a frictionless way for banks, payment providers and digital asset exchanges to send money globally.This includes xCurrent, xRapid and xVia in the RippleNet ecosystem.And some of these solutions do not need XRP to work. xCurrent is Ripple's bank-to-bank cross-border settlement solution, xRapid is Ripple's liquidity solution for payment providers (FIAT conversions USD->EUR, etc.) and xVia is a standard component for institutions making payments across different networks. want to send Companies in both xCurrent and xVia can use XRP if they feel like it, although it is not required.Just xRapid needs the use of XRP.The Ripple Consensus Protocol cannot exist without XRP, although Ripple, the company, can still afford it if it fails.RCL also supports transactions in fiat currency, cryptocurrency, commodities or any other unit of value such as frequent flyer miles or mobile minutes.However, your digital wallet must be funded with a small amount of XRP (around 20) before you can transact on the Ripple Protocol. That minimum amount of XRP will stay in your wallet indefinitely. You are unable to go below this limit. While your activity on the protocol may not involve XRP at all, for example exchanging Australian dollars for US dollars, the fact that wallet activation requires XRP makes it an indispensable component of the protocol.Finally, XRP is a completely independent digital asset that exists independently of Ripple Company and RCL.

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